Washington, D.C., February 25, 2015 - Portfolio flows to emerging markets moderated to $12 billion, down from $23 billion in January, according to the latest EM Portfolio Flows Tracke r by the Institute of International Finance.
"EM portfolio flows have been very volatile in recent months,"' said Robin Koepke, an economist at the IIF and lead author of the report. "These gyrations are likely to continue in the period ahead as Fed interest rate hikes come closer and investors adjust their expectations of the likely pace of Fed tightening."
The IIF reported that muted bond and equity issuance in February contributed to the moderation in portfolio flows. Equity issuance was estimated to have fallen nearly 50% relative to the buoyant activity seen in the two prior months, while bond issuance continued at a subdued level.
The Institute of International Finance is the global association of the financial industry, with close to 500 members from 70 countries. Its mission is to support the financial industry in the prudent management of risks; to develop sound industry practices; and to advocate for regulatory, financial and economic policies that are in the broad interests of its members and foster global financial stability and sustainable economic growth. Within its membership IIF counts commercial and investment banks, asset managers, insurance companies, sovereign wealth funds, hedge funds, central banks and development banks. For more information visit www.iif.com.