The flight to quality

It began in August; we started getting calls from a number of our hedge fund clients. In one case, a very large client called us in mid-August to say they wanted us to liquidate or remove any bank risk from their portfolio," says Mark Morris, a principal and portfolio director at Payden & Rygel.

Fast forward to the autumn and Citigroup announced that it may have to write down $11 billion in assets in addition to a prior disclosure of $5.6 billion. Merrill Lynch disclosed more than $8.4 billion of