Friday, 16 January 2009

Emerging Market Bond Funds Post Outflows Again ... Is The Recovery Trend Off Again?

According to EFPR, during the week ended Jan. 14, emerging market debt had outflows of $181 million, equivalent to 0.41 percent of assets under management,) offsetting an inflow of $13 million recorded the previous week. We had mention in a posting last week that such inflow had been the first since August.

The greatest outflows were seen for local currency funds, where $137 million were pulled. Currency fluctuations ''had a significant impact on fund asset values, amounting to $388 million over the week while market price effects served to drag asset values down by a further $216 million´´ as the EMBIG spread widened 56 basis points, according to ING Bank analyst David Spegel.

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