Emerging Market Bonds During A Financial Crisis: As Expected Not a Safe Haven

I wrote on May 4 that I didnt find the case for holding emerging makerts bonds very convincing and that they would likely suffer during the crisis emanating out of Europe.

Bloomberg reports that yield spread over treasuries are widely across the board in the fixed income markets and emerging market bonds are not immune:

Bond Sales Fall to Least in Decade, Yields Soar: Credit Markets

....In emerging markets, yield spreads narrowed 22 basis points to 317 basis points, the least since May 19, according to JPMorgan Chase & Co.’s Emerging Market Bond index. The spread has widened from this year’s low of 230 on April 15.