Emerging Market (EM) fixed-income funds saw: the 2nd-largest weekly outflow recorded at $4.2 billion in the week ending Aug. 26, and overall EM net outflows of $10.5 billion in the past week are the largest since early 2008, Dimitra DeFotis from Barron’s reports. According to Morgan Stanley: Outflows have sharply accelerated in recent weeks and emerging market … Continue reading
By Steve H. Hanke, CATO Institute For some years, hot money flowed in, adding massively to China’s foreign reserve stockpile. Speculators borrowed cheaply in U.S. dollars and bought yuan-denominated assets in anticipation of an ever-appreciating yuan. Well, this carry trade has shifted into reverse, with $91 billion in net outflows in the last quarter of 2014. And … Continue reading