Most of these investments have been intermediated by non-bank financial institutions, such as asset management companies, hedge funds and pension and insurance companies. A novel feature of this episode of capital inflows to EMEs has been the fact that a large portion of them have taken place as purchases of government bonds denominated in the domestic currency by non-resident investors (Figure 4).
We will continue to do our part, and we appreciate the ways our work and that of NCRC members have intersected. Last April, for instance, the Fed expanded the Paycheck Protection Program Liquidity Facility in order to broaden its reach to include some nondepository lenders. That included CDFI (community development financial institution) loan funds, which many of the people here represent.