The Wall Street Journal’s MoneyBeat blog has noted that for the eighth straight week in a row, emerging market bond funds have enjoyed inflows with $500 million heading into the asset class in the last week that data is available for.
Emerging markets bonds denominated in dollars are also up by over 7% since the start of the year.
Why are both inflows and bond values rising? Its seems the market believes the Fed is in no rush to jack up interest rates.
According to Angus Halkett, emerging market debt portfolio manager at Stone Harbor Investment Partners:
“All the stuff that got beaten up last year and in January this year is springing back. It does feel like there’s a bit of froth. It’s like early 2013 when everything was fine and liquidity was abundant. And we saw how quickly that sentiment evaporated. But I think for now this can continue.”
To read the whole article, The Death of Emerging Markets Was Much Exaggerated, go to the website of the Wall Street Journal.
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