Bond

The new ETF, which tracks the BofA Merrill Lynch 0–5 Year EM USD Government Bond ex-144a Index, looks to reflect the performance of short-maturity emerging market government debt issued in US dollars.

The issue was placed with more than 400 European institutional investors. The order book totalled around €6.5 billion. The bonds will pay a 4.00% fixed rate of interest over the first 10 years and subsequently adjusted every five years...

Bill Gross is managing the global macro-driven bond fund, acting on his highest conviction ideas in order to generate positive returns and fixed income diversification, while navigating ever-changing market conditions in the global economy.

Concerns over global growth, central banks starting to tighten policy and a lack of liquidity have all contributed to a painful re-pricing of high yield in the last three months.

Emerging markets debt will offer investors compelling buying opportunities when US interest rates start to normalize, according to Greg Saichin, CIO Emerging Market Debt at Allianz Global Investors, the EUR 387 billion asset manager.