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Emerging-Market Investors Pile Into Bonds as Delta Spreads

  • BNP Paribas Asset likes long end among EM high yielders
  • Pictet Asset says conditions favor EM debt over equities
Updated on

Emerging-market investors have been pouring money into bonds and cutting back on stocks in a trend that’s set to intensify as the delta variant of the coronavirus ravages developing economies with low vaccination rates.

Bonds have seen net inflows for 11 straight months, the longest streak in Institute of International Finance data going back to early 2018. They surged to a net $99.2 billion in the six months through June, versus net equity withdrawals of $2.2 billion, according the data, which tallies emerging markets excluding China.