A Global Bond Bubble Is Emerging That Professionals Never Could Have Imagined

Given the state of global debt markets and the apparent lack of value across the investment landscape, it's easy to see why interest has turned to emerging economies.

Gabriel Sterne, an economist at the frontier-market brokerage firm Exotix, told Business Insider, "You get some of these big funds – a lot of the funds in the States – just getting these inflows every month. What do they do with them? They tend to just double up and put them in [emerging markets]."

Sterne went on, saying, "In the absence of any bad news, there is not enough supply out there, so yields just fall down."

UBS rates strategists Bhanu Baweja, Stephen Mo, and Nicholas Smithie were lamenting the lack of "distressed" investment opportunities around the world right now – given all of the recent interest in EM debt and assets – in a note to clients Wednesday.