Markets scaling back bets on emerging markets - Reuters
According to reporting by Reuters, a Federal Reserve survey is highlighting that credit players are scaling back their expectations of a rise in emerging market valuations.
“About three-fourths and two-thirds of the respondents reported that their hedge fund and mutual fund clients, respectively, have some exposure to emerging markets,” the Fed said, saying it had included questions on emerging market exposure given the “turmoil” seen in emerging markets this year.
For most client types, survey respondents said between two-fifths and three-fifths held net-long positions on emerging market assets, meaning they were betting on increases in the values of the assets. But most clients had also increased bets over the course of 2018 that the value of emerging market assets would fall, the Fed said, citing the survey responses.