BOSTON - Amid the tighting of Federal Reserve Board interest rate policy, investors are shifting out of more aggressive emerging market bond mutual funds - a trend that's unlikely to change quickly, according to a recent ING Barings' Emerging Markets report.
While net inflow to mutual funds for emerging markets debt increased $363 million between Jan. 1 and March 7, the pattern subsequently reversed; between March 8 and April 9, emerging market debt funds posted a $176 million net outflow, according to Marco Santamaria, a senior fixed-income analyst at ING Barings.
In addition, mutual funds for U.S. high-yield fixed income had net inflows of $4.95 billion between Jan. 1 and March 12.
But that pattern also reversed; between March 13 and April 9, mutual funds for U.S. high-yield debt had $1.26 billion of net outflows.
