Emerging Market Bond Funds: Flow-Performance Relationship and Long-Term Institutional Investors

6 Pages Posted: 22 May 2019

See all articles by Cho-Hoi Hui

Cho-Hoi Hui

Hong Kong Monetary Authority - Research Department

Date Written: April 2019

Abstract

Mutual funds investing in emerging market economy (EME) bonds have increased almost seven-fold since the 2008 Great Financial Crisis (Graph 1). This development has raised two questions from a financial stability perspective. Firstly, how important is it to understand the fund-flow performance relationship in which overperforming funds encourage inflows and underperforming ones outflows? And secondly, can long-term institutional investors (LTII) such as pension funds and insurance funds be considered a stabilising force during market sell-offs?

Full Publication: Asia-Pacific Fixed Income Markets: Evolving Structure, Participation and Pricing

Suggested Citation

Hui, Cho-Hoi, Emerging Market Bond Funds: Flow-Performance Relationship and Long-Term Institutional Investors (April 2019). BIS Paper No. 102o. Available at SSRN: https://ssrn.com/abstract=3390971

Cho-Hoi Hui (Contact Author)

Hong Kong Monetary Authority - Research Department ( email )

Hong Kong
China

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