According to very detailed data compiled by BAML and EFPR, last week Emerging Market fund outflows were $6.4Bn, which is the largest such move since August of 2001.Emerging-markets

Putting this into context, August 2011 was the worse month I had ever seen as a HF manager in EM.  

Blooomberg reported that emerging market ETFs saw 7Bn in outflows in January, which is the largest since the securities were created.  

You may note that I tweeted out a couple days ago that 5% of the outstanding ETFs in EEM and VWO were deconstructed in the 2 days preceding the Fed announcement.  

The combined impact of EM equity and debt outflows is $9.1Bn, which other than last May's "Taper Tantrum" has put us back to Lehman fear times in 2008!

There has been 14 straight weeks of outflows, which is tied for the longest streak on record.  

EM debt and equity funds have lost 4% of their total AUM in the last rolling 3m period (BAML EFPR).

These stats are amazing if you consider where the level of risk appetite was for investors just one month ago.

 

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