Global investors are continuing to pour money into emerging market bond funds, with year-to-date inflows passing the US$3 billion mark during the second half of May, according to data released by Massachusetts-based Emerging Portfolio Fund Research (EPFR).

According to EPFR, year-to-date inflows into emerging market bond funds are higher than during any comparable period since it began tracking fund flows a decade ago, and the year-to-date US$3 billion inflow has already outstripped the full 2003 year inflow. However, there are some signs of a slowdown, with several European emerging bond funds recording outflows for the week end 25 May.

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