The World Bank’s annual report on capital flows to developing countries highlights two facts that shouldn’t be much of a surprise: Developing economies – the World Bank’s definitions leaves out th…

I was going to write about how the markets have concluded that risk does not exist.After all, early last week, the market thought that dollar bonds issued by emerging economies were not that much mor…

I have long worried that as the carry trade gets less profitable (i.e. the difference between the interest rate on short-term and long-term debt falls), hedge funds would respond by doubling up their…