Monday, July 10, 2017

The money ain't going there


In the past week, investors withdrew $826.8 million from the biggest emerging-market debt exchange-traded fund, the largest withdrawals in the $11.5 billion fund's history. Hard-currency debt of developing nations and their companies have lost more than 1 percent since June 26, when benchmark borrowing costs in Europe and the U.S. surged.
I guessed, thought the EM was doing fine. 

Never take advice from a guesser.  But the withdrawal is some ten percent of the fund which means rolling overt EM debt is going to be difficult.

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