US subprime mortgage woes have long been casting a shadow over the financial markets. Until recently, however, there had not been much fallout on financial markets in general - the problem was considered as limited to the US housing market. But perceptions changed in the course of the past week as subprime fears spread to other risk assets, and the past few days have seen pretty much all risk assets feel the heat - global equity markets have fallen, high yielding and Emerging Market currencies have come under pressure and credit spreads have widened. In other words, there has been a broad-based fall in global risk ... (full story)