The Liquidity Conundrum: A Sell-Side Problem in Need of a Buy-Side Solution

November 18, 2015 at 12:00 PM ET | NetMeeting

The lack of market liquidity – particularly in the fixed income markets – has been a widely discussed topic recently given concerns around how regulations have driven reduced inventory levels on the sell side. At the same time, an explosion in daily redeemable products, many of which are in the same market sectors where the loss of liquidity is perceived as being most acute, has raised important questions around the ability of the buy side to handle “run on the bank” redemption scenarios. While there isn’t much historical evidence of runs on funds (outside money market funds during the crisis), regulators have identified this as a potential critical risk facing the financial system. Indeed, the SEC recently released a proposal that would require asset managers to implement formal liquidity risk management programs.


Additional Information

Key Discussion Topics

Key discussion topics will include:

  • The impact of the new regulatory requirements on markets, investors, and asset managers;
  • The pressure on asset managers to come up with solutions that respond to the requirements;
  • The practical and analytical challenges that managers will face as they implement liquidity risk management programs; and
  • What these programs might look like.

Introduction:
Arlen Oransky, SVP, Chief Membership & Programs Officer, MMI

Presenters:
Joshua Zwick, Partner, Wealth and Asset Management, Oliver Wyman
Samir Misra, Partner, Wealth and Asset Management, Oliver Wyman
Sebastjan Smodis, Global Head of Liquidity Risk Management, State Street Global Advisors

Duration:
50 minutes – including time allocated for Q&A

This NetMeeting is for MMI members only and is closed to the media.