Reuters
Published Mar 24, 2020 05:58AM ET
Updated Mar 24, 2020 09:57AM ET
(Reuters) - Emerging market bond funds are performing poorly compared with their global peers as investors rush into the safety of cash and money markets to shield themselves from a further market erosion due to the cornavirus pandemic.
Refinitiv data showed emerging market bond funds have lost 16.7% of their market value on average over the past month, while the European and U.S. bond funds shed about 9% each.
(Graphic: Global bond funds' returns, https://fingfx.thomsonreuters.com/gfx/mkt/13/3830/3791/region.jpg)
Global investors sold $4.5 billion worth of emerging market bond funds in the week ended March 18, compared with an inflow of $210 million in the prior week, according to recent data from Lipper.
(Graphic: EM flows, https://fingfx.thomsonreuters.com/gfx/mkt/13/3831/3792/weekly%20flows%20into%20EM%20bond%20funds.jpg)
Brazil's bond funds were among the top 5 worst performing global funds over the past month, the data showed.
(Graphic: Worst performers, https://fingfx.thomsonreuters.com/gfx/mkt/13/3833/3794/worst%20performing.jpg)
Brazil's Caixa FMP FGTS Carteira Livre Renda Fixa 49 LP68018635 , Santander (MC:SAN) PB Negroocho Acoes FI LP68579992 and VIC Safari FICFI Multimercado Credito Privado IELP68534155 have shed more than 40% each over the past month, the data showed.
Among the top global bond funds by asset size, PIMCO Income fund LP40114576 lost 12.78% over the past month, while Dodge & Cox Income fund LP40005160 dropped 7.26%.
(Graphic: Worst performers among top funds by assets, https://fingfx.thomsonreuters.com/gfx/mkt/13/3834/3795/top%20funds.jpg)
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.