31.   Funds recording the biggest gains were those investing in some of the more speculative segments of the financial markets such as emerging markets debt.

32.   Gains in Brady prices were more a mechanical reaction to U.S. bond rises than a demonstration of greater confidence in emerging market debt, he said.

33.   Grannis said his fund had already sold most of its emerging market debt before the rout that began two weeks ago.

34.   He said trading in emerging market debt was not active.

35.   Higher yields on U.S. bonds make riskier emerging market debt less attractive.

36.   His remarks sent U.S. bonds and most emerging market debt to big losses.

37.   Higher yields in the U.S. make riskier emerging market debt less attractive.

38.   In anticipation of that he has been selling Brady bonds to buy short-term emerging market debt, and holding cash.

39.   In terms of investing abroad, Litman sees potential in emerging markets debt, which he said investors have been dumping unreasonably.

40.   In the U.S. especially, demand for emerging market debt has surged.