Risk USA: BlackRock cuts strategies that rely on liquid markets

Richard Prager and Supurna VedBrat
Richard Prager and Supurna VedBrat

BlackRock has reined in trading strategies that depend heavily on market liquidity – a response to the risk-taking constraints now facing banks, which have permanently removed liquidity from some products, according to Richard Prager, head of the trading and liquidity strategies group at the asset manager in New York. "One of the first things we did was to look at investment strategies that were most dependent on liquidity – high-velocity strategies are one example – and we