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Wednesday, 17 July 2013
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<p>Quotes from Standard Chartered:</p>
<p>-In our view, institutional fund flows will be critical in determining the future&nbsp;direction of the EM fixed income asset class. Recent market volatility has focused&nbsp;investor attention on the potential end of the bull run in fixed income, and is likely to&nbsp;result in a potential reallocation of funds away from EM debt as well.</p>
<p>-Deeply negative&nbsp;YTD returns and meagre expected returns (we expect UST yields to be closer to 3.5% in&nbsp;12 months' time) coupled with weaker fundamentals for emerging economies over the&nbsp;next couple of years may also drive this reallocation away from EM credit. At the very&nbsp;least, these factors are likely to slow the pace of institutional inflows to emerging&nbsp;markets, weighing on EM credit performance over the next year or so.&nbsp;</p>
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buy LT 3800-3810 stop loss 3780 target 3835/3900/3950
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