Thread by @econchart

A couple of important notes to understand in what ways the recent #COVID19 outflows episode is different from the #GFC one 1)EMs suffered important outflows during the GFC, but these were "distributed" in a long and stretched way, very painful yet more predictive 1/n

However, this time around the #COVID19 outflow episode was very sudden, "fast" and deep. A literal "sudden stop" The last four weeks represent the largest weekly outflows on record

https://twitter.com/econchart/status/1242228440541147138?s=20

To put things into perspective for this fast and sudden #COVID19 outflow, the outflows year-to-date (up until March 24) have already surpassed all the inflows for the whole 2019 year! 3/n

https://twitter.com/econchart/status/1242448434847797248?s=20

Second important note on how #COVID19 and #GFC outflow episodes are different: Due to large debt accumulation in EMs (attributed to long periods of yield-seeking behavior from investors) this time around we are seeing outflows from both asset classes (EM #debt and #equities)

Back in 08', during the #GFC most of the outflows were attributed to equities (typically fast moving and reactive to geo-political events) This time around we are seeing #debt flows also being hit 5/5