Risk managers warned of ‘liquidity black holes’
‘Liquidity black holes’ are being caused by the development of increasingly sophisticated risk analysis software, according to Avinash Persaud, investment director at Dublin-based Global Asset Management.
He told risk managers to identify slow moving, structural long-term correlations with which to diversify portfolios. Short term, cyclically correlated assets would be more vulnerable to change properties in times of crisis, he added, making the portfolio more susceptible to liquidity black holes.
He advised risk managers to avoid homogeneity in the industry and to use simple processes. He also gave a strong warning against the dangers of implementing single risk analysis systems throughout large corporations.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net