Gramercy’s El-Erian, Koenigsberger on Liquidity Risks, Credit, EM

The video discusses liquidity concerns in financial markets, highlighting the impact of central bank policies and the risks associated with liquidity drying up. It explores the resilience of banking systems compared to non-banking systems and the challenges posed by leverage. The discussion also covers the implications of Fed policies, the importance of credit differentiation in emerging markets, and the potential risks of sovereign debt.

What has been the trend in liquidity over the last decade?

How much cash did Goldman recently report to be on the sidelines?

What are the two contrasting factors affecting liquidity and asset performance?

What risks do investors face regarding liquidity in the next 6 to 12 months?

What is the challenge with investing in illiquid securities?

How did the financial system perform during the recent recession?

What are the implications of the non-banking system's resilience?

What factors contribute to the risk of malfunctioning markets?

What concerns were raised regarding the massive debt buildup?

How does differentiation in credit risk affect investment decisions in emerging markets?