When the Financial Stability Board was established a couple of years ago, it declared that one of its goals was to produce better “early warning” systems of looming financial trouble spots. Now it is starting to turn this rhetoric into reality. Investors should pay attention.
Last month, the FSB issued a small advisory report entitled “Potential financial stability issues arising from recent trends in Exchange-Traded Funds”. Unsurprisingly, this did not cause a storm.
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