Developing market equities could seen more pain ahead as the U.S. Federal Reserve readies its first interest rate hike in almost a decade. After years of growth fueled by cheap money and an end to a commodities super-cycle, economists at the Bank of International Settlements warned of negative spillovers with higher borrowing costs, reports Elaine Moore for the Financial Times.

“In the current streak of nine straight weeks of outflows, $12.5B, or 1.7% of AUM has exited. It’s typically taken outflows of more than 4% of AUM over a 10-week stretch to create a strong tactical buy signal for EM,” adds Seeking Alpha.

iShares MSCI Emerging Markets ETF

Tom Lydon’s clients own shares of EEM.