Money pours into EM debt

A SURGE of money flowing into emerging market (EM) debt is creating an unusual problem for some specialist hedge funds: they have more cash than they can comfortably put to work.

According to a Bloomberg report, several investment firms focused on distressed and hard-to-access EM debt are beginning to turn away new investors or prepare to cap their assets under management, arguing that excessive size can become a disadvantage in niche markets.