"It's like running into the path of a steamroller to pick up a nickel lying on the road." With this stark assessment of the risk-reward ratio for pension schemes and insurers, Dick Cohee, deputy administrator at the Jacksonville Fire and Police Pension Fund, explains why his organisation has brought a halt to a previously mundane part of the investment strategy: securities lending.
And Cohee is not alone. Fears over counterparty risk following the collapse of Lehman Brothers in September has see
The week on Risk.net, July 14–20, 2017Receive this by email