Silver as an investment

30-Year EM Veteran Fears “The Most Illiquid Market Conditions I’ve Ever Seen”

zerohedge.com / by Tyler Durden / Jul 17, 2017 6:20 PM

Low market volatility spurred a “torrent” of capital flows into emerging-market debt, reflecting investor complacency and “excessive risk taking,” Bank of America Merrill Lynch strategists led by David Hauner in London wrote in a report last week. He warned that the second half of the year should bring challenges for lower-rated issuers as higher interest rates in the U.S. reduce some of the appeal of junk credits with relatively steep interest rates.

“The market is at a point where we haven’t hit a real bump in the road to wake everyone up.”

And they are not alone. Since entering the world of emerging markets nearly three decades ago, Robert Koenigsberger, who oversees $6 billion as chief investment officer at Greenwich, Connecticut-based Gramercy Funds Management, has seen more than his share of changes. One of the most consequential, BloombergQuint.com reports, is the migration of allocators from hedge funds to exchange-traded and mutual funds in recent years.

That’s effectively made ETFs one-day liquidity vehicles, versus the 90-day instruments leveraged funds typically offer, which, as Koenigsberger explains simply means:

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The post 30-Year EM Veteran Fears “The Most Illiquid Market Conditions I’ve Ever Seen” appeared first on Silver For The People.

30-Year EM Veteran Fears “The Most Illiquid Market Conditions I’ve Ever Seen”

zerohedge.com / by Tyler Durden / Jul 17, 2017 6:20 PM

Low market volatility spurred a “torrent” of capital flows into emerging-market debt, reflecting investor complacency and “excessive risk taking,” Bank of America Merrill Lynch strategists led by David Hauner in London wrote in a report last week. He warned that the second half of the year should bring challenges for lower-rated issuers as higher interest rates in the U.S. reduce some of the appeal of junk credits with relatively steep interest rates.

“The market is at a point where we haven’t hit a real bump in the road to wake everyone up.”

And they are not alone. Since entering the world of emerging markets nearly three decades ago, Robert Koenigsberger, who oversees $6 billion as chief investment officer at Greenwich, Connecticut-based Gramercy Funds Management, has seen more than his share of changes. One of the most consequential, BloombergQuint.com reports, is the migration of allocators from hedge funds to exchange-traded and mutual funds in recent years.

That’s effectively made ETFs one-day liquidity vehicles, versus the 90-day instruments leveraged funds typically offer, which, as Koenigsberger explains simply means:

READ MORE

The post 30-Year EM Veteran Fears “The Most Illiquid Market Conditions I’ve Ever Seen” appeared first on Silver For The People.