● Emerging market debt looks like an attractive asset class at present
● There is concern about the possibility of another ‘taper tantrum’ in emerging markets
● Central banks, however, are keen to avoid their previous mistakes
The process has been welcomed by investors who are desperate for any kind of return in times when investment-grade bonds in developing markets deliver pitiful, sometimes negative returns.
This appetite was highlighted by the Institute of International Finance (IIF), the global association of the financial industry, which reported that debt inflows to emerging market debt reached $44.2bn (€36.5bn) in January. Even excluding China, by far the largest recipient, the amount was $29bn. Although most of this debt has been issued in local currency, a significant and growing share has been issued in hard currency.
Alunos das escolas municipais retornam às salas de aula a partir desta quarta-feira
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Suspeita de cobrança indevida em mais de 500 mil contas de água é investigada em Minas
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