Fixed Income  

Opportunity to re-engage with systemic risk issue

This article is part of
The Guide: Fixed Income

Businesses must also be studying whether they have the systems to collate, analyse and report on the use of derivatives and leverage across fund ranges, and if they operate best practice when it comes to liquidity management.

Other areas for consideration include whether in stressed market conditions, firms are able to make use of the full range of liquidity management tools that the regulator currently allows. Finally, firms need to make sure they are fully engaged with EU and national debates on new leverage and liquidity requirements.

Julie Patterson is a director and regulatory specialist at KPMG

 

KEY FIGURES

14

Number of policy recommendations from the FSB to tackle liquidity concerns in open-ended funds

December 2015

Closing of Third Avenue’s high-yield fund amid worries about bond liquidity

$8trn

Assets under management in open-ended fixed income funds globally

17%

Share of US corporate bonds owned by mutual funds at the end of 2015, a rise from 6% in 2008