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Rushed exit from bond funds ignites fear of market tantrum

Regulators are unprepared for such an outcome, warn economists in a paper

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Play money: People throwing around fake euro notes during a rally against Turkey's Prime Minister Tayyip Erdogan in Ankara on Saturday. - PHOTO: REUTERS

LOW interest rates have incited a craze for risky bonds in fast-growing economies, and few fund companies have been more adept in meeting this demand than Pimco, the world's largest bond manager. Over the past four years, Pimco's flagship emerging market (EM) local currency fund grew to more...

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