BofA: Investors Largely Sit Out Weak Local EM Markets YtD

Bank of America have noted that "investors have largely been sitting out the weak performance of EM local markets YtD, and positioning remains heavy and at risk of outflows if further U.S. rates shocks occur. Putting the current positioning in a long-term context shows that, despite some correction, markets remain quite long. On the regional level, EEMEA remains the biggest long position, and this has changed little over Q1. In contrast, LatAm positioning has been cut back most meaningfully in Q1 and is now closer to the long-term average. Asia positioning remains lower than the historical average, and has moved even lower in Q1."