EMERGING market debt trading volumes totaled nearly $1.3 trillion in the third quarter of 2017, a 15% climb from $1.13 trillion in the second quarter, according to a survey released on Wednesday.
However, the third quarter total was down 6% from nearly $1.38 trillion during the same time last year, according to EMTA, the emerging markets debt trading and investment industry trade association.
The turnover in local market instruments dropped 16% year over year to $736 billion in the third quarter from $878 billion during the same time last year, EMTA said.
Turnover of local market instruments made up 57% of total reported volume in the three months ended Sept. 30.
In a statement, EMTA said survey participants reported greater trading in the Asian region than in Latin America, the first time this has happened in the two decades the association has compiled quarterly trading volumes.
Brazilian instruments were the most frequently traded instruments overall, totaling $143 billion in turnover, or 11% of overall third quarter volumes. Trading in Brazilian instruments dropped by 7% year on year.
Indian instruments were the second most frequently traded at $138 billion, down 36% year on year.
However, volumes rose 81% versus the second quarter. Overall, Indian instruments made up 11% of total volumes.
Chinese assets were the third-most traded with volume of $129 billion, an 18% increase year over year and up 34% from the second quarter of 2017.
Eurobond trading increased 11% from the same time last year to $553 billion in the third quarter, EMTA said.
The survey compiled data from 45 leading investment and commercial banks, asset management firms and hedge funds and includes trading volumes from over 90 emerging market countries. — Reuters
