Liquidity has become gold dust. Seen as commonplace pre-credit crunch, it's now scarce and expensive, and when the tap is switched off, the results are potentially very damaging. The casualties of the past year show how fatal the inability to fund your operations can be.
In a survey of fixed-income professionals conducted by Greenwich Associates over the summer, two-thirds of respondents considered liquidity risk to be their main concern, surpassing market risk for the first time.
As the hedge fun
The week on Risk.net, October 6-12, 2017Receive this by email
- SGX, HKEX expect to be among first wave of Mifid II equivalence
- Leaked EU doc could shield legacy swaps from clearing grab
- Quantile, TriOptima face off in cleared swaps compression battle
- ABS set for revival under US Treasury’s liquidity buffer plans
- Quants stymied by lack of alternative risk premia flows data