(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
Among the top global bond funds by asset size, PIMCO Income fund
(Graphic: Worst performers among top funds by assets, https://fingfx.thomsonreuters.com/gfx/mkt/13/3834/3795/top%20funds.jpg)
(Reporting By Patturaja Murugaboopathy; Editing by Vidya Ranganathan and Raju Gopalakrishnan)
