Investors are crowding emerging market bonds for higher yields, yet the Wall Street Journal reports that such densely populated markets spell danger.
Over $18 billion entered emerging market bonds in July, and $5 billion already this month. Analysts say the comparative balance of outflow and inflow are reminiscent of the 2009 post-financial crisis environment.
Stability can be misleading, says the Journal, as emerging markets such as Brazil, Russia, and Mexico are only stable due to their reliance on petroleum - now with higher prices.
The US Federal Reserve is expected to hike interest rates in the fall, a signal of economic tightening to come.
Read more at the Wall Street Journal.