JPMorgan: Inflows into EM bond funds set to halve in 2020

After a stellar year for emerging market bonds in 2019, the world’s largest EM bond house says returns don’t look so rosy for 2020.

Emerging market dedicated bond fund inflows are expected to fall by over half in 2020 on account of less accommodative monetary easing and rising EM country risks, according to JPMorgan. Inflows are predicted to slow to around $30 billion, down from around $65 billion in 2019, according to analysts at the bank.

With a peak of $17 trillion of global bonds offering negative returns in 2019, investors turned to EM bonds to pick up yield, prompting above-trend demand for the asset class last year.

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