It is reported that capital flows to emerging markets have turned positive for the first time since the 2nd quarter of 2014, having attracted a net US$ 28,6bn in the 1st quarter of 2017. This comes after the Washington DC-based Institute of International Finance (IIF) reported that cross-border portfolio flows in March were at their highest monthly level since January 2015 and broad capital flows to China turned positive in February for the first time in almost three years. The trends appear despite the fact that the US Federal Reserve raised interest rates on 15 March, suggesting that investors were not bothered by what would normally be a negative signal for emerging market assets. The Financial Times signals that, starved of yield in developed markets, investors have rediscovered an appetite for emerging market risk.