Positive inflows continued this past week into all major asset classes with the exception of money markets, which saw an outflow of $17 billion, or -0.70% of assets.
- High Grade +$471 million, or 0.10% of assets.
- High Yield +$347 million, or0.30% of assets.
- Bank Loans +$290 million, or 1.20% of assets.
- EM Debt continues unabated with inflows of $202 million,or 1.20% of assets.
- Equities and Commodities saw sparse inflows.
Bank loans and EM debt taking in that amount of money has caution written all over it. Bank loans I get (having been beaten about the head and hands in restructuring by the banks), but EM debt is a another beast. Political instability (not a huge factor right now), rule of law (or lack thereof - always a problem), and the differentiation between local and foreign investors can lead to bad results. Not negative, but cautious given the risks and where it is priced.
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