Citadel traditionally keeps more than a third of its assets in cash or liquid securities, allowing it to pounce when opportunities arise.

Indeed the thirst in emerging markets for such safe and liquid securities is one of the deeper causes of the series of crises that has afflicted the rich world.

Funding pressures on large financial institutions seem to have eased somewhat, and some markets, including the market for mortgage-backed securities, appear to be more liquid, he said.