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Market liquidity could evaporate in response to shocks, IMF warns

It also notes corporate debt in emerging-market economies has quadrupled in the past decade with low interest rates

With markets jittery in the face of China's slowdown and uncertainty over when the US Fed will start raising rates, what seemed a distant threat is looking more like a clear and present danger.


AS global stock markets reeled and currencies gyrated on Tuesday on interest-rate uncertainties and fears of accelerating economic slowdown in China, the International Monetary Fund (IMF) issued a chilling warning that financial-market liquidity could "evaporate in response to...

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