(Corrects name of association in headline and 2nd paragraph)
By Dion Rabouin
NEW YORK, Sept 13 Emerging market debt trading
volume rose 12 percent in the second quarter 2016 compared to
the same period last year, as investors looked for higher yields
than normally found in developed markets.
According to EMTA, the emerging markets debt trading and
investment industry trade association, emerging market debt
traded grew to $1.356 trillion in the second quarter 2016 from
to $1.211 trillion in the same quarter last year.
Volumes also rose 5.0 percent in second quarter from $1.299
trillion in the first quarter this year.
"Trading volumes were up in the second quarter, as all
markets recovered from a very negative start of the year," said
Jane Brauer, director and EM sovereign strategist at Bank of
America Merrill Lynch in a release.
"The emerging markets debt asset class is currently in a
sweet spot with improving fundamentals, strong inflows,
increasing issuance and strong year-to-date returns."
With more than $10 trillion of developed market debt trading
at zero or negative yields, investors have found emerging market
Mexican instruments were the most frequently traded
instruments, according to the survey, with $216 billion in
turnover, representing a 19 percent decrease from the $266
billion reported in the second quarter of 2015, and an 8.0
percent fall from first quarter volume of $234 billion.
Mexican volumes represented 16 percent of overall volumes.
Trading of Indian instruments, which rose 146 percent to
$188 billion from the second quarter of 2015, showed the second
most turnover, followed by Brazilian assets ($155 billion),
South African ($110 billion) and Chinese ($98 billion).
Indian instruments were the most frequently traded local
markets debt, EMTA reported, showing $180 billion in turnover.
Trading of debt instruments from India was followed by those
from Mexico, at $172 billion, South Africa ($99 billion), Brazil
($89 billion) and China ($50 billion).
The figures are based on reports by 45 international banks,
asset management firms and hedge funds and tracks debt
instruments in more than 90 emerging market countries.
(Reporting by Dion Rabouin)