For example, multinationals are estimated to account for 22 per cent of total employment.3 However, this means structural shocks emanating from abroad can have an important bearing on the performance of the economy. These can include changes in global trade or international taxation regimes.
In fact, liquidity risk is particularly an issue for some bond and equity funds that invest in less liquid assets, while offering shortterm redemptions to their investors. These funds are vulnerable to sudden changes in investor sentiment, so-called “run risks”. Some recent cases were a reminder that investors in less liquid funds might indeed run if they fear deterioration in asset quality or liquidity.