, Columnist
Winds Shift for Emerging-Market Debt
Enthusiasm fades as central bankers reconsider stimulus.
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Emerging-market debt funds had a phenomenal first half of 2017, with record inflows and solid returns. But the ebullience is running out of steam and that sentiment will most likely deteriorate even further in the weeks to come.
In the past week, investors withdrew $826.8 million from the biggest emerging-market debt exchange-traded fund, the largest withdrawals in the $11.5 billion fund's history. Hard-currency debt of developing nations and their companies have lost more than 1 percent since June 26, when benchmark borrowing costs in Europe and the U.S. surged.