Borrowing levels are expected to run well above pre-COVID levels in many countries and sectors again this year, supported by still low interest rates, although a reopening of economies should help on the GDP side of the equation.
Debt accounted for the majority of inflows, mostly to emerging Asia and China, as investors were attracted by a steady pipeline of external issuance. Debt inflows were around $11.7 billion during the month.
Debt flows accounted for $23.5 billion of total, while Chinese equities attracted some $6.1 billion, the data showed.
Covid-19 and excess debt make a dangerous cocktail
That relatively modest selling compared with USD2.7 billion on August 24 in 2015 when concerns about China's economy and a devaluation of its currency triggered global financial market jitters.
The Institute of International Finance (IIF) said Asia-based investors were actually net buyers of emerging market (EM) securities funds, investing about USD 3.85 billion since the start of the year, after pulling out around USD 14.6 billion last year.
EPS have dropped 25 percent from their August 2011 peak, Garner said, pointing to MSCI data.
Bank lending conditions in emerging Asian nations have tightened the most since the global financial crisis, according to the latest survey from the Institute of International Finance (IIF).
Fuelled by strong growth prospects and easy liquidity conditions, private sector investors are expected to pump in a whopping USD 1.11 trillion into emerging markets including India in 2013, says a report.
Hung Tran, deputy managing director at IIF, said that a new rescue package for Greece should be allowed in the July 21 agreement and it should also be implemented as promptly as possible.
French banks have agreed to roll over holdings of Greek debt for 30 years, President Nicolas Sarkozy said on Monday, as the Greek government fought to persuade backbench rebels to back a crucial austerity plan to avert bankruptcy.
Jeremy Lawson, Deputy Director-Macro Analysis at IIF talks to CNBC-TV18's Menaka Doshi about the flows to the emerging markets and how he sees it panning out in the coming months.
Private investment money pouring into emerging markets could reach USD 1.041 trillion in 2011, up from a previous estimate of USD 960 billion, a global bank group said on Wednesday.