02046cas a2200253 a 4500 AALejournalIMF021127 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513551982 1018-5941 BD-DhAAL BD-DhAAL Cortes, Fabio. Do Multi-Sector Bond Funds Pose Risks to Emerging Markets? / Fabio Cortes, Luca Sanfilippo. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (57 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Emerging economies in the post-crisis period increasingly saw portfolio debt inflows from a type of large international investment fund: Multi-Sector Bond Funds (MSBFs). These investors have lacked adequate representation in the literature. This paper constructs a new detailed database from micro-level MSBF emerging market (EM) holdings from 2009:Q4-2018:Q2. Exploiting this data, the paper assesses the risks they pose to the financial stability of specific emerging bond markets. The data shows that MSBFs are highly concentrated-both in their positions and their decision-making. The empirical results further suggest that MSBFs exhibit opportunistic behavior (and more so than other investment funds). In periods of high risk aversion, large MSBF portfolio reallocations out of EMs can be associated with underperformance of the same markets, signaling the importance of monitoring their footprint and better understanding their asset allocation decisions. Mode of access: Internet Sanfilippo, Luca. IMF Working Papers; Working Paper ; No. 2020/152 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/152/001.2020.issue-152-en.xml IMF e-Library