Not enough Emerging Market bonds?

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.

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Read more at the Wall Street Journal.