“Brazil edged past China to become the largest emerging market in the world, as measured by Morgan Stanley Capital International’s emerging markets index.” (MarketBeat)

Have investors been misled about the stabilization efforts of banks in the auction rate securities market? (DealBreaker.com, naked capitalism)

Do private equity shops need to fundamentally change the way they do business? (breakingviews/WSJ.com)

Involuntary asset growth and Variable Interest Entities (VIEs). (Alea, FT Alphaville)

“The forex market, incredibly, may now be more worried about US inflation than the Fed is.” (FT Alphaville)

Phibro, Citigroup’s “secretive trading group” generated nearly 10% of the bank’s income trading commodities. (WSJ.com, Market Movers)

What do you call a ‘rogue trader‘ who makes money?  (DealBreaker.com)

Bonds are a better diversifier than hedge funds for an all-equity portfolio. (InstitutionalInvestor.com)

Actively managed, target date, fund of fund ETFs are on the drawing board. (IndexUniverse.com)

Analyst support as a contrary indicator. (Dash of Insight)

The number of municipal bond ETFs keeps on growing. (ETF Trends)

New home sales and new home months of supply both point to recession. (Calculated Risk, ibid)

“A book about rationality requires a clear idea of the concept.” (Free Exchange)

Have we missed something new and interesting in the investment blogosphere? Feel free to drop Abnormal Returns a line.