Some dollars flowing back into emerging market bonds

Nov 03, 2015 (LBO) – Despite a slowdown in China which led to selling of emerging market bonds over the last two years, some investors are getting back in, a media report said.

Investors such as Eaton Vance and HSBC Asset Management have added to their exposure to emerging markets.

Bonds in local currency from Brazil, Turkey and Mexico offer value with annual returns of up to 15 percent, a foreign media report said.

HSBC, which has 135 billion dollars in emerging market assets, invested in Brazil, Mexico, Turkey, South Africa, Indonesia and Colombia over the summer, an HSBC official said.

Inflows of 13.9 billion dollars was reported going into emerging markets in October, the first monthly inflows since June, according to the Institute of International Finance global trade group. Emerging market bonds attracted 7.7 billion dollars in investments.