Hard Currency Debt Funds Lose Cash

EM bond funds lost $250m in the week to November 28, according to EPFR Global, amid a flight from riskier fixed income assets. EM funds geared to hard currency debt accounted for 85% of the outflows. High yield bond funds meanwhile lost $833m. EM debt funds have returned 4.66% this year, less than short and intermediate US Treasury funds group tracked by Lipper, which have YTD returned 7.31% on average overall. EM debt is also trailing global income and international income funds tracked by Lipper, two groups that have underperformed EM for most of this year. Those two groups have returned 7.13% and 9.13% this year, respectively, overall.