Economics & Finance
Capital Flight to Periphery & Valuation Arbitrage
When core markets (the US) reach saturation in valuing certain assets or face political risks, issuers redirect financing needs to peripheral markets (Japan, Middle East, Singapore, etc.). Retail investors in these markets, constrained by information asymmetries or seeking liquidity, accept higher risk premiums. This pattern reveals the stratification and arbitrage opportunities inherent in global capital markets.
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