Risk is back in the financial markets. Just look at the fact that assets under management at hedge funds jumped by $100 billion in the second quarter as investors begin to put cash to work again.
It is not just hedge funds that are benefiting from improvements in liquidity. Emerging markets are riding the wave too. Inflows into dedicated emerging markets equity funds this year are $32 billion, according to data tracker EPFR Global. There is also strong momentum behind bond funds investing in the developing world. These saw a 15th...
