For example, in the 10-year period ending in May of 2004, the J.P. Morgan Global Emerging Markets Bond Index had a total return of 248%, greater than both U.S. corporate bonds and the S&P 500.

BREAKING DOWN 'Emerging Markets Bond Index - EMBI'

The J.P. Morgan indexes are a popular benchmark for money managers that deal in emerging market debt, so investors may see the index used as a comparison for their mutual funds or exchange-traded funds. Because of their higher interest rates, emerging market bonds can significantly outperform U.S. Treasury bonds. For example, in the 10-year period ending in May of 2004, the J.P. Morgan Global Emerging Markets Bond Index had a total return of 248%, greater than both U.S. corporate bonds and the S&P 500.

Read more: Emerging Markets Bond Index (EMBI) Definition | Investopedia http://www.investopedia.com/terms/e/emerging-markets-bond-index.asp#ixzz3keOOAlID 
Follow us: Investopedia on Facebook