History indicates that emerging markets central banks are often late in responding to inflationary pressures and plunging currencies, but this time could be different, and if it is, swift rate action could be supportive of ELD. “Improved valuations and coupon income should help cushion any yield rises and prevent disorderly moves in EM bonds when the Fed lifts off, we believe. That's a tried-and-true tactic from the emerging markets central bank playbook, but it doesn't necessarily spell trouble for fixed income exchange traded funds, such as the actively managed WisdomTree Emerging Markets Local Debt Fund (NYSEArca: ELD).