Emerging-Market Investor Firepower Dwindles to Taper-Tantrum Low
- JPMorgan survey finds cash in EM portfolios at 3.4% of assets
- Underscores bullish expectations on capital-flow momentum
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Cash balances in emerging-market debt funds are touching lows notched in the aftermath of the 2013 Taper Tantrum, as investors soak up bumper bond supply and extend bullish positions in obligations issued by sovereigns and corporates alike.
Dry powder among emerging-market portfolios is at just 3.4 percent of assets, close to levels posted after the tumult that roiled developing-economy assets four years ago, according to a JPMorgan Chase & Co. client survey conducted last month.