haydenbird The Western Asset Emerging Markets Debt Fund Inc ( NYSE: EMD ) is a closed-end fund, or CEF, that invests its assets in emerging market securities to earn a high level of current income for its investors. The fund manages to achieve a very high yield from this strategy, as its current 10.75% yield is substantially higher than the 4.
82% trailing twelve-month yield of the iShares J.P. Morgan USD Emerging Markets Bond ETF ( EMB ).
Then again, it is not at all unusual for a closed-end bond fund to boast a higher yield than comparable index funds. Due to the use of leverage, pretty much all bond funds manage to achieve this task. We can see this by looking at the yields of other closed-end funds that invest in emerging markets debt securities: Fund Name Morningstar Classification Current Yield Western Asset Emerging Markets Debt Fund Inc Fixed Income-Taxable-Emerging Market Income 10.
75% MS Emerging Markets Debt Fund ( MSD ) Fixed Income-Taxable-Emerging Market Income 11.59% Templeton Emerging Markets Income Fund ( TEI ) Fixed Income-Taxable-Emerging Market Income 10.52% Virtus Stone Harbor Emerging Markets Income Fund ( EDF ) Fixed Income-Taxable-Emerging Market Income 12.
97% Morgan Stanley Emerging Markets Domestic Fund ( EDD ) Fixed Income-Taxable-Emerging Market Income 7.59% Click to enlarge As we can immediately see, the Western Asset Emerging Markets Debt Fund's yield is not particularly impressive when compared to that of many of its peers. Indeed, its 10.
75% yie.
