Emerging markets have seen the longest streak of withdrawals on record, for five straight months flows have been aggressively flowing out. The soaring US dollar is causing systemic de-risking and deleveraging throughout the global periphery and frontier emerging markets. Liquidation and default risks are high in areas like private equity and venture capital. These types of reactions feed on with higher interest rates, stymieing growth and increasing risk. In July outflows by international investors in EM stocks and domestic bonds … Continue reading “Emerging Markets Longest Streak of Withdrawals Ever with Risk Spread Contagion”