Recent research finds that benchmark-driven investment has increased markedly since the global financial crisis, a phenomenon that has arguably led to more volatile capital flows and increased vulnerability for emerging markets. We investigate how far this is true by examining the contribution...

This note ranks the sensitivities of emerging market economies' (EMEs') bond fund flows to changes in the US monetary stance and global risk aversion. Based on the sensitivities, we draw heat maps to indicate the economies that are more likely to suffer large outflows. We find that bond fund...

This working paper was written by Yuewen Tang (Hong Kong Monetary Authority) and Alfred Wong (Hong Kong Institute for Monetary and Financial Research).We analyse dollar funding stress experienced by advanced and emerging market economies through studying the behaviour of their cross-currency...