The popularity of emerging markets is rapidly waning among investors. Statistics reflects the actual size of the problem. In the second quarter 2015, debt trading volume of these countries sank by record 27% compared with the previous year. Last year, the trading volume made up $1.668 trillion, whereas this year it slid to $1.211 trillion. In regard to the first quarter, it was a 1% drop. Analysts say that the tumble was mainly due to weak growth rates of the global economy and gradual tightening of monetary policies by regulatory bodies. Eurobond trading decreased above all. However, experts point out that Russia’s 2030 bond and Brazil’s 2025 with $8 billion in turnover both are trading rather actively in this difficult period for developing countries. Investors are also interested in Brazil’s 2045 bond, Mexico’s 2025 bond, and Ukraine’s 2017 bond. However, debt holders are not able to stop an ongoing capital outflow from emerging countries. According to official data, a net outflow of funds invested in Russian stocks stood at $76.2 million in the given period. It is the twelfth week in a row of the non-stop capital flight. Currently, investors are undertaking revisions and reviewing their portfolios. Still, it is unclear what the US Federal Reserve is going to do: will it raise interest rates eventually or not.
