Asset Managers Surge Exposure to Emerging Markets Amid Rising US Yields
· Business · Bloomberg, Fortune
Biggest global asset managers are increasing investments in developing economies despite a recent surge in US Treasury yields that typically draws capital away. Mpho Hlakudi and Selcuk Gokoluk report that this counter-trend allocation signals shifting risk appetites among major funds. The move comes as traditional safe-haven assets face pressure from higher yields in developed markets. Investors appear to be seeking better risk-adjusted returns in emerging market debt and equities despite the macroeconomic headwinds.
Why it matters
Indian and other emerging market economies benefit from increased foreign capital inflows, which can ease financing costs and support local asset prices. However, the shift also exposes these markets to sudden capital reversals if US yields continue rising or global risk sentiment shifts.
Read the original report — Bloomberg
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