MONEY MASTER

Emerging markets suffered a sharp reversal in capital flows in March, with investors pulling out  US$70.3 billion , marking the  largest outflow since the Covid-19 market crash in 2020 . Massive Equity Selloff Led by Asia Data from the  Institute of International Finance  showed that  equities accounted for the bulk of the outflows , with  US$56 billion withdrawn  — the largest equity exodus in at least two decades. The selloff was heavily concentrated in  emerging Asia , which absorbed most of the equity withdrawals following strong inflows earlier in the year. This reversal represents a  “sharp regime break” , triggered by geopolitical shocks linked to the  Iran conflict . Oil Shock and Tech Repositioning Drive Risk-Off Shift The outflows were driven by a combination of factors: Oil prices surged ~50% to above US$100 , raising inflation concerns Investors reduced exposure to  technology-linked equities , a key driver of Asian mark...

The world’s debt surged by over $12 trillion in the first three quarters of 2024, reaching a record $323 trillion , according to a report by the Institute of International Finance (IIF) . The rise reflects increased borrowing fueled by falling borrowing costs and renewed investor risk appetite . Key Insights Debt Drivers and Projections Sovereign debt is expected to grow by one-third by 2028 , reaching nearly $130 trillion , driven by large government budget deficits. Emerging markets debt is nearing $105 trillion , or 245% of GDP , signaling elevated repayment risks. Debt-to-GDP Trends Global debt-to-GDP ratio stands at 326% , down from its pandemic peak but still historically high. Developed markets face the fastest rising debt service costs , exacerbating fiscal pressures. Environmental Costs Meeting global emission reduction targets could add an extra $38 trillion to global debt by 2028. Risks and Challenges Mini Boom-Bust Cycles : Rising trade tensions and supply-chain disr...