Argentina’s Peso and the Turkish Lira have weakened substantially, with increasing concern in markets over potential contagion to other EMs. Non-resident portfolio flows to EM were very strong in the run-up to 2018, with pockets of concentration in some notable emerging market countries.
Latest Research Reports
Capital Markets Monitor: Libor Transition: Progress, but Challenges Remain
A year after the decision to phase out Libor, there has been good progress on alternative reference rates. However, key challenges remain including the transition of financial contracts and the need to create liquid futures markets.
IIF Capital Flows Tracker: Sharp Slowdown in August
Portfolio inflows to emerging markets slowed to just $2.2 billion in August, following inflows of $13.7 billion in July. Our broader measure of net capital inflows turned modestly positive in July, with the bulk of flows directed to China.
Weekly Insight: The Cruelest Month
Euphoria for U.S. equities, dysphoria for emerging markets. Yield curve flattening—sorting signal from noise. Tracking EM contagion—some markets much more affected than others. Looking for brighter spots—expansion of tradable sectors for some EMs should be supportive.
Economic Views: Mexico - Assessing the Trade Deal
A preliminary bilateral deal was announced this week, featuring some restrictive terms for the auto industry. The auto industry is large and very linked to the US, and may suffer from new labor value content rules. Tighter regional value content rules are less of an issue.
Recent Advocacy Work
FRT Episode 3: Machine Learning in Risk Management
In Episode 3 of FRT, we explore the key findings from the IIF study, in which we interviewed 60 firms (58 banks and 2 mortgage insurers) on their adoption or exploration of machine learning.
FRT Podcast Episode 2: Sharing and Safeguarding Data
Continuing 'FRT', the IIF's new podcast on the intersection of Finance, Regulation and Technological innovation, we’re pleased to share our second episode, on the emergence of Open Banking and frameworks for sharing customers’ data.