Bond Market Has A $745 Billion Bet Against the Dollar
- Emerging markets defy selloff gripping most risk assets
- Aberdeen’s Athey prepares for day greenback rekindles strength
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There’s a flipside to the market’s biggest ‘pain’ trade against the dollar: emerging-market gains.
Foreign holdings of local-currency debt of developing nations have swelled to near a record $745 billion, according to data collected by Deutsche Bank AG. With much of their buying at the expense of the greenback, according to this metric investors have never been so exposed to a sudden turnaround in the U.S. currency.