FINSUM + Magnifi: Why EM Bonds are Surging

Magnifi in Action: "International Bonds Funds"

Click on any fund in the chart below to dig deeper.

July 28, 2021

The Delta variant is surging in and around the US but it originally took hold in many emerging market countries. EM investors have countered the new COVID strain by completely pulling back in equities and piling into bonds. EM bond markets have had 11 straight months of net inflows which is the best streak since early 2018. Bond inflows hit a net $92.2 billion over the last six months as $2.2 billion has poured out of equities in EM (excluding China). This is likely to stay the course as stocks in emerging markets tend to turn around when optimism is better than in the developed world. The best places in EM appear to be at the long end of the yield curve in Russia, Colombia, and Turkey, says the head of multi-asset solutions at BNP Paribas. This is in lockstep with funds as MSCI Inc.'s gauge of emerging markets stocks is off almost 9% from the February peak.

(New York)

FINSUM + Magnifi: EM investors should double down their bond market spending on EMs as long as the delta variant continues to spread.

Other news today: Morgan Stanley Warns of Correction as Vix Spikes and The Next Green Trend: Carbon CaptureNew call-to-action

Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. As of July 2021, 450,000+ users with $541+ billion in Assets Under Influence, have used Magnifi over 8,800,000 times. Try it for yourself today.


This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide brokerage or custody services.]