Pakistan Bond

Pakistan bond mutual funds and ETFs invest the majority of their assets... Pakistan bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of Pakistan. These funds can be actively or passively managed and may seek to track or outperform a particular benchmark. They may hedge foreign currency risk, or elect to leave themselves exposed to fluctuations in the Pakistani Rupee. Depending on their mandate, these funds may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. As of 2023, Pakistan’s total government debt totalled around US$223 billion. Domestic creditors owned roughly 38% of this debt. Investors can purchase these funds for capital growth and income. Pakistani bonds tend to pay much higher interest rates than developed market bonds due to the economic instability the country has faced, and the risk of currency depreciation. As a result, these funds are only appropriate for very aggressive investors. Last Updated: 12/27/2024 View more View less

Pakistan bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of Pakistan. These funds can be actively or passively managed and may seek to track or... Pakistan bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of Pakistan. These funds can be actively or passively managed and may seek to track or outperform a particular benchmark. They may hedge foreign currency risk, or elect to leave themselves exposed to fluctuations in the Pakistani Rupee. Depending on their mandate, these funds may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. As of 2023, Pakistan’s total government debt totalled around US$223 billion. Domestic creditors owned roughly 38% of this debt. Investors can purchase these funds for capital growth and income. Pakistani bonds tend to pay much higher interest rates than developed market bonds due to the economic instability the country has faced, and the risk of currency depreciation. As a result, these funds are only appropriate for very aggressive investors. Last Updated: 12/27/2024 View more View less