The Eastern European carry-trade meltdown, reviewed

As reported here previously, much of the panic surrounding western European exposure to CEE fragility was focused on a particular set of BIS figures, a number amounting to some $1,700bn ‘reflecting total foreign claims’ from the region.

The figure was cited among others by Stephen Jen of Morgan Stanley,  but many in the market and the press subsequently misinterpreted or took the number out of context.