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Friday, Jun 21
The selloff causes stress cracks in ETFs, with many tumbling below NAV. Worst hit are emerging...
The selloff causes stress cracks in ETFs, with many tumbling below NAV. Worst hit are emerging markets ETFs like the EEM which yesterday slipped to a 6.5% discount. "We are unable to take any more redemptions today ... a very rare occurrence due to capital requirements - we are maxed out on the amount of collateral we have out," emailed a Citi trader to counterparties. ETF losses were "far beyond what the most sophisticated financial risk models could have predicted," says Bryce James of Smart Portfolio. Where have we heard that before?