Brexit Might Just Stoke Greater Appetite for Emerging Markets
- Institute of International Finance studied capital flows
- Lower rates in mature markets push investors to seek EM assets
JPMorgan's Mowat: We're Positive on Emerging Markets
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The U.K.’s departure from the European Union may drive even more investors fleeing the developed world of near-zero rates into the arms of higher-yielding emerging markets, according to a study by the Institute of International Finance.
While the referendum vote has increased political and economic uncertainty, its negative impact was felt mainly in central and eastern Europe and is expected to have limited spillover to other emerging markets, the IIF said in its monthly report on portfolio flows.