EM liquidity: the danger stalking global markets – beyondbrics - Blogs - FT.com:
"“Emerging markets are where we can measure the deterioration of trading conditions. They are the warning for the rest of the market.”
So says Hung Tran, executive managing director of the Institute of International Finance. He has powerful data to back up his assertion. According to four key metrics, trading conditions have tightened dramatically over recent years, with especially sharp moves in recent months. Where emerging markets have led, the fear is, other global markets may follow.
As beyondbrics wrote last week, there is a host of anecdotal evidence to show that traders in EM assets are gripped in a liquidity squeeze. Now Tran and his colleague Sonja Gibbs, director of the IIF’s capital markets and emerging markets policy department, have run some numbers that add worrying substance to the talk on trading floors."
'via Blog this'
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