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This Says Our Favorite Biotech Is Off to the Races

Shares of a promising biotech we recommended back in February 2013 – jumped as much as 27% to a three-month high of $14.20 yesterday after the company said a new cancer drug met its main goal in a midstage clinical trial.

Its shares backtracked a bit as the day progressed but still closed 17.6% higher for the session. These shares have advanced 361% since we first told you about them. The stock has generated a peak gain of 456%, making it one of the 31 recommendations we’ve made to you that have doubled or better since we launched Private Briefing in August 2011. (More on that later…)

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    The Hunt for Higher Yield: Investors Pour into Emerging Market Debt

    The never-ending hunt for higher yield is leading investors to bet record amounts on emerging market debt.

    In just the first two weeks of 2012, governments of undeveloped economies from Asia to Africa sold more than $30.6 billion in dollar-denominated bonds according to Bloomberg News.

    That's up from roughly $19.9 billion in the same period last year and the most since 1999, when Bloomberg began collecting data.

    Typically, investors shun emerging market bonds during times of uncertainty in favor of "safer" assets like gold and U.S. Treasuries.

    But that has started to change.

    The Big Move Into Emerging Market Debt

    In fact, investor demand is overwhelming supplies as orders have outstripped the amount of bonds being sold.

    During a recent auction, the Philippines received $12.5 billion of orders for $1.5 billion of 25-year bonds, pushing the yield down to a record-low 5%. Indonesia sold 30-year bonds at a record-low yield of 5.375% and Colombia sold $1.5 billion of 29-year bonds at 4.964%.

    Analysts say the debt crisis in Europe, along with record low yields on U.S Treasuries, has investors on the hunt.

    They are now buying the debt of undeveloped nations like Indonesia, Mexico and Brazil, even though credit-rating firms rank them as more risky than their European counterparts

    "What we're seeing is a re-evaluation of sovereign-credit risk, increasingly being driven more by fundamentals than by classifications," Eric Stein, a portfolio manager at Eaton Vance Corp. (NYSE: EV) told The Wall Street Journal.

    According to the J.P. Morgan Emerging Markets Bond Index, investment-grade sovereign emerging-market bonds are yielding an average of 4.7%.

    By contrast, Italian 30-year debt yields 7%, while Spanish 30-year debt yields 6.1%.

    One reason emerging market bonds are attracting interest is...

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  • Columbia Emerging Markets Bond Fund