The retreat from emerging market equities continues, although outflows from India appear to be slowing, notes HSBC. Korea was the only major Asian country to see inflows in August.
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The withdrawal of investment banks as market-makers could cause problems if bond investors rush for the exits amid QE tapering, but BlueBay sees continued flows.
In one of the worst sell-offs since the European sovereign crisis in 2011, PMs and private banks took cue from the Fed's QE exit hints to cut their bond portfolios significantly.
The US Federal Reserve's exit from quantitative easing won’t spark emerging-market panic, as monetary tightening once did in 1994, believe investors, economists and analysts.