EM securities rebound in September with $38bn of inflows

'Pendular nature' to 2019 flows

Emerging markets bonds and equities attracted an estimated $37.7bn (£30.8bn) in non-resident net inflows in September after investors pulled $13.9bn (£11.4bn) during the previous month, reflecting the “pendular nature of flows during 2019”.

The Institute of International Finance's (IFF) Capital Flows Tracker found emerging markets equities and debt saw $10.3bn and $27.6bn of net inflows respectively in August. 'Better macro backdrop' is needed for EM earnings to improve Emerging markets securities flows have been volatile in 2019, primarily as a result of US-China trade tensions, which "in May caused a rapid deterioration in global risk appetite, resulting in an important outflow episode", the report said. Sentiment towards emerging markets asset classes improved in June, but as trade tensions reignited August became ...