Emerging market corporate bonds have seen a performance boost over the last month following a sell-off in other developing economy assets.
emerging market equities
A strengthening US dollar has contributed to a reversal of fortunes for emerging market equity ETFs after a strong run, with Turkey and Latin America among those hit the hardest by the recent sell-off.
Emerging market equity ETFs have amassed close to $50 billion year to date despite geopolitical turmoil brewing in the Middle East and anticipated interest rate hikes from the US Federal Reserve.
After months of strong outflows, the fortunes of European equities were finally reversed in June, with the asset class seeing inflows for the first time despite the looming threat of the referendum on the UK’s membership in the EU, and the subsequent Brexit vote.