Investors pour $1.2b into riskier debt as rate rise fears fade

Investors are pouring cash into the world’s largest exchange-traded fund tracking emerging-market debt, as confidence mounts that the US Federal Reserve is nearing the end of its aggressive monetary tightening campaign.

The iShares JPMorgan USD Emerging Markets Bond ETF recorded its strongest weekly inflow last week since January, gaining $US765 million ($1.2 billion) as investors ride the euphoria that has been pumping money back into risk assets. The fund has seen six weeks of continuous inflows, the longest streak since August 2022, according to data compiled by Bloomberg.

Bloomberg