About this work
The Federal Reserve’s early 2019 shift away from tightening could revive capital inflows to emerging markets even though investors had already priced in a pause. High frequency flow data were showing a sharp increase as the search for yield resumed. The analysis identifies South Africa as the most crowded positioning case, with Brazil and Russia the least heavily positioned among the markets assessed.
Abstract
The Federal Reserve’s early 2019 shift away from tightening could revive capital inflows to emerging markets even though investors had already priced in a pause. High frequency flow data were showing a sharp increase as the search for yield resumed. The analysis identifies South Africa as the most crowded positioning case, with Brazil and Russia the least heavily positioned among the markets assessed.
Cite this work
Jonathan Fortun, Robin Brooks, Tariq Khan (2019). Global Macro Views: The Fed Restarts the Wall of Money to EM. Institute of International Finance.