Institute of International Finance December 4, 2018

Global Macro Views: EM Positioning after the Sell-Off

· Robin Brooks · Tariq Khan

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About this work

After the 2018 emerging market selloff, improving sentiment raised a question: how much exposure had investors actually shed? Jonathan Fortun, Robin Brooks and Tariq Khan combine capital flow data with changes in asset valuations to measure positioning. Their framework distinguishes money moving across borders from changes in the value of existing holdings, which historically accounted for most shifts in positioning.

Abstract

After the 2018 emerging market selloff, improving sentiment raised a question: how much exposure had investors actually shed? Jonathan Fortun, Robin Brooks and Tariq Khan combine capital flow data with changes in asset valuations to measure positioning. Their framework distinguishes money moving across borders from changes in the value of existing holdings, which historically accounted for most shifts in positioning.

Cite this work

Jonathan Fortun, Robin Brooks, Tariq Khan (2018). Global Macro Views: EM Positioning after the Sell-Off. Institute of International Finance.