The difference is that the flaky-currency players don't buy dollar-denominated bonds and don't buy longer-term paper.
The fund has 40 percent of its fund in Mexican equities or dollar denominated bonds.
The country cannot continue borrowing at today's rates: PDVSA's latest dollar-denominated bonds pay a 12.75% coupon.
He owns their 2016 dollar denominated bonds yielding 10 percent and ADRs listed on the NYSE.
Yuan denominated bonds met strong demand, yet nonresidents had no incentive to issue them.
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Daewoo's dollar-denominated bonds are now worth less than half of their face value, according to the firm.
Southeast Asia's largest bank by assets, said it plans to issue yuan-denominated bonds that will be cleared in Singapore.
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No wonder some banks, such as France's Paribas, are investing heavily in trying to become leaders in euro-denominated bonds.
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Similarly, the disappearance of guilder-denominated bonds will hurt Dutch banks, which run around 85% of issues of such debt.
Euro-denominated bonds are unpopular (they were all the rage after the launch of the euro, but quickly lost their appeal).
Carlson has most of his portfolio in dollar-denominated bonds issued by governments or their alter egos, like the Venezuelan oil company.
China has taken some baby steps in this direction, for instance by allowing firms to issue yuan-denominated bonds in Hong Kong.
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In anticipation of further market declines, Germany announced that it would no longer allow naked short selling of its Euro-denominated bonds.
Right now, only investors with accounts in Russia can buy rouble-denominated bonds.
Investors, it is clear, have an almost insatiable demand for euro-denominated bonds.
The growth of offshore yuan-denominated bonds, offshore yuan deposits and trade settlement were the main drivers to the rising index, said the bank.
European firms are increasingly issuing euro-denominated bonds to refinance expensive bank debt, their traditional source of finance, and to raise money for takeovers.
These cases cover individuals and pension schemes which held LIBOR-denominated bonds as well as financial firms that traded LIBOR products on the Chicago Mercantile Exchange.
To be sure, rupee-denominated bonds come with their share of risks.
Views on yen-denominated bonds vary widely, as expectations mount that the Bank of Japan may soon raise interest rates for the first time in a decade.
But most of the investors choosing emerging market debt are buying bond funds with local currency debt, rather than buying the sovereign or quasi-sovereign dollar denominated bonds that foreign countries like Brazil also issue.
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Reduced expectations for appreciation have also contributed to a slowdown in the growth of yuan deposits in Hong Kong the only place where the currency can trade freely and have cut demand for yuan-denominated bonds sold in the territory, dubbed "dim sum" bonds.
Its debt burden is unlikely to reach the 150% of GDP forecast for Greece, but Ireland is also a small country in a big currency block: if investors want to buy euro-denominated bonds with a surer return, they have other places to go.
It will become harder still with the creation of a single, liquid market in euro-denominated corporate bonds.
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But in August the dollar-denominated Russian bonds got too cheap to resist and he bought a lot of them.
China has fooled itself again, this time in believing that holding their trade imbalance in dollar denominated treasury bonds represents a fair bargain.
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If its currency weakens over the next few years, by the middle of the decade, international investors will be more enticed to buy yen and yen-denominated government bonds.
Another loophole is used by companies: in a market known as blue-chip swaps, they buy dollar-denominated sovereign bonds in pesos, transferring them to the United States where they sell them for dollars.
Mr Lopes insists that tight monetary policy will slow the capital outflow, because it is no longer profitable to borrow reais to buy dollar-denominated Brazilian bonds, as it was when bond yields soared last month.
Jake Lowery, portfolio manager at ING Investment Management LLC in Atlanta, said he would prefer to participate in euro-denominated sovereign bonds because that debt, but not dollar bonds, could receive the backing of the European Central Bank.
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