Mutual funds continued their rotation from external to local debt, Asia saw and increase in overweight positions, Latin America saw a decrease, and emerging Europe, Middle East and Africa were unchanged in terms of overweights, J.P. Morgan said.
Investors are becoming increasingly wary of the rise in inflation across (emerging markets)," the bank said. Investors widely expect (emerging market foreign exchange and fixed-income markets) to perform best between now and year-end; they expect corporate external debt and cash to be the worst performers.
