The growth of the hedge fund industry is hindering risk management and valuation processes and is putting margins under pressure, says a report by the Financial Stability Forum (FSF), issued on May 18.
The report warns that firms could be exposed to a liquidity crunch if hedge funds reduce investment levels. Although indirect risk is difficult to estimate, the FSF says that investors should improve stress tests to estimate their exposure to a drop in market liquidity and asset prices. It calls f
The week on Risk.net, July 7-13, 2018Receive this by email