الإثنين, 04 حزيران/يونيو 2018 08:48

Why Emerging Markets Look Likely to Flop

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(Sao Paulo)

Investors who had been betting on emerging markets stocks might want to take notice of what is happening in the Treasuries market. While the explanation is a little technical, hear this: since the US deficit is set to rise rapidly, the US will see a surge in Treasury issuance. That big jump is issuance will suck up investor Dollars, and is likely to greatly wound Dollar-based EM funding. The Fed will also be forced to stop shrinking its balance sheet, which will also exacerbate the situation for EMs.


FINSUM: It sounds like the EM funding market is going to take a hit, which could have major ripple effects throughout the whole asset class.

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