Low volatility prompts rise in risk-taking

Risk managers have warned that declining volatility is leading to increased risk concentration and aggression.

Speaking at a roundtable at Credit sister publication Risk magazine's conference in June, participants said that risk managers are under pressure to supplement current strategic risk allocations with extra "buffer funds", providing more capital at a premium rate and allowing investment managers to concentrate further in the same sector (albeit at a higher cost of funds).

Lower volatil

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