Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on the day's biggest business stories
Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Want a daily digest of the top Nashville news?
Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.
Want a daily digest of the top Columbus news?
Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.
Want a daily digest of the top Dallas news?
Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.
Sign up for Axios NW Arkansas
Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters
Photo: Bryan R. Smith/AFP/Getty Images
Investors pulled back slightly on emerging markets debt last year, with trading volumes falling just 0.4% to $4.88 trillion, according to a new report from trade association EMTA.
Why it matters: Despite the Fed raising rates 4 times and the U.S. dollar rising — both are seen as very negative for EM bonds — investors bought emerging market debt at roughly the same level as 2017 when the asset class significantly outperformed U.S. debt.
Context: EM debt had a rough 2018, with the JPMorgan EM global bond index delivering -5% returns and a number of major EM currencies falling in value against the dollar, delivering a double whammy to local currency bondholders.
- EM equities were hard hit, with the MSCI emerging market stock index down 15%.
Yes, but: Trading volumes fell to their lowest since 2015, which was the lowest they had been since 2009. EM debt had picked up significant momentum going into 2016, reaching nearly $5.2 trillion, but has pulled back since.
- Investors also dramatically increased the volume of insurance trading on emerging market debt, trading 40% more credit default swaps last year than they did in 2017, EMTA's data showed.
- CDS trade volume rose to $1.8 trillion as worries increased over the health of Turkey and Argentina's economies, as well as elections in countries such as Brazil and Mexico.
Go deeper: Emerging markets are hot again after a rocky 2018