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EM Bonds tanking

CrashCrash
in Fund Discussions
The fall has been precipitous, in bond-terms--- though as yet short-lived. PREMX is particularly vulnerable, but it's not as if I did not know that, beforehand. I have benefited greatly from PREMX monthly income, since I originally bought it in 2010. The fund owns a big slug in Venezuela, which is defaulting. And I note a tranche in Lebanon, where the Prime Minister ran away to Saudi Arabia, then announced his resignation. He fears for his life. His father was assassinated while serving as PM in Lebanon in 2005, too! Add a stronger dollar lately (high-point yesterday, over the past 4 months. But PREMX is mostly, though not exclusively, in dollar-bonds.)

I own quite a bit in PRSNX, too. (Multi-asset global bonds.) It is steady. So steady, it's almost making me impatient. Shall I sell some PRSNX and buy PREMX on this dip? I don't bet that the PREMX downtrend is over, yet, though.

Comments

  • MikeMMikeM
    Hi Crash. I don't follow PREMX or many EM bond funds so I haven't noticed tanking. Is PREMX acting like the rest of the EM sector or is the fund unique? I own MAINX and like you, PRSNX, and no tanking going on with either. Not apples to apples though.
  • CrashCrash
    edited November 2017
    I do notice that FNMIX (EM bonds, the favored one by some folks here at MFO) is behaving the same way as PREMX. I have not looked further than that. Those two seem to run neck-and-neck, every time I bother to compare them. You own MAINX. Good choice! I'm babysitting some money for someone else, and a small portion of their stuff is in MAINX. I'm 13.6% of portf. in PREMX, and 10.6% in PRSNX. The combined monthly divs. from the two of them is delicious. Still re-investing it all.
  • PRESSmUPPRESSmUP
    I've had TGINX for several years now, and it doesn't seem overly affected with recent actions. Not sure why, however.
  • CrashCrash
    edited November 2017
    1-month returns:
    PREMX -1.13%
    FNMIX -0.82%
    TGINX -0.49%

    Fund Manager at PREMX (Michael Cornelius) made a reasonable case in a recent M* article about continuing to own Venezuela. I expect that piece of the portfolio is mostly responsible for the current, short-term losses. And I don't think the scenario going forward is favorable. I suspect PREMX owns more in Ven. that the other two I listed, above. Just a guess. And the political situation in Lebanon doesn't help PREMX, either. It's not the end of the world, but it's not pleasant. Less pleasant for the now former Prime Minister of Lebanon, too!
  • catch22catch22
    Have you looked at this list? Click on a column heading to sort and find your baby.....

    http://news.morningstar.com/fund-category-returns/emerging-markets-bond/$FOCA$EB.aspx
  • CrashCrash
    Thanks, @Catch22.
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