Emerging-Market Assets Roar Back to Life
- Short interest in largest stock, bond ETFs slumped to about 2%
- Morgan Stanley says growth pickup needed for rally to continue
A man looks out from an opening in a wall as residential buildings stand in the distance in the Jiading district of Shanghai, China, on Monday, April 11, 2016. China's economy stabilized last quarter and gathered pace in March as a surge in new credit helped the property sector rebound while raising fresh question marks over the sustainability of the debt-fueled expansion.
Photographer: Qilai Shen/BloombergThe best rally in emerging-market stocks and bonds in seven years is sending bears back into hibernation.
Short interest in the largest exchange-traded fund tracking developing-nation dollar-denominated bonds has fallen to 2.2 percent of shares outstanding, near the lowest level since 2012, from 13 percent in mid-February, according to data compiled by Bloomberg and Markit Ltd. Bearish bets on BlackRock Inc.’s $26 billion emerging-market stock ETF have tumbled to around a 1 1/2-year low of 2.9 percent, from 15 percent in January.