Brydon also highlighted the importance of risk mitigation instruments in unstable markets, and said the benefits of derivatives “far exceeds” their costs.
Brydon also noted the “attempts by investment banks to proclaim they know what’s best for their clients – investment managers”. “This is not the case,” he said. Brydon gave the example of the development of exchange-traded funds, which “dis-intermediates investment managers”. He added that investment managers are now doing more collateralised debt obligations and structured products, which is normally the preserve of the investment banks.