Institute of International Finance (IIF)

Money Moves

Tracking record emerging-market refinancing needs

Twenty years ago, developing countries borrowed from international banks; today, roughly 80 percent comes from hedge funds, pension funds, insurers, and other non-bank investors — entities that exit far faster than banks. The IMF warns in its April 2026 Global Financial Stability Report that nearly $4 trillion in cumulative portfolio investment has flowed into emerging markets since 2008, much from institutions with little obligation to stay.

Updated May 30