According to fund tracker EPFR Global Emerging-market bond funds took in an eight-week high of $671 million in new money for the week ended Nov. 2,Which marks the third straight week of inflows, and a significant increase from the previous week's inflows of $135 million.
But with emerging-market currencies still seeing significant volatility, investors favored hard-currency emerging-market bond funds, which drew $520 million in inflows, according to ING's analysis of EPFR data. Local currency bond funds, meanwhile, received a meager $39 million in the latest week. Blended funds received inflows of $113 million, ING said.
The surge in hard-currency bond fund inflows coincided with a stream of issuance of dollar-denominated emerging-market bonds last week, amid calmer markets. Emerging-market issuers flooded the markets last week, pushing total volume in October to $17.4 billion, according to Dealogic data.
Emerging market equity funds, meanwhile, also had a standout week, seeing their biggest inflows since April. Those funds took in $3.49 billion in net new cash, from $1.01 billion the previous week.
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