The financial markets has increasingly taken the direction of extremes, mostly driven by “search for yield”, negative interest rates and other endogenous market shocks. At the same time, investor preferences and new regulation also affect the pricing of assets. As a result, investors, banks, insurance companies’ mutual funds and pension funds face different liquidity risks in bond investing and treat those obstacles differently.
We have invited Michael Surowiecki, CFA, Executive Vice President and Portfolio Manager from PIMCO, Jens Skovsted Halsnæs, Liquidity Advisor at Danmarks Nationalbank, and Erling Skorstad, Senior Investment Professional, to shed light on liquidity risks in the bond market, from multiple strategic levels to in-dept angles. Also invited is Andreas Dankel, Head of Fixed Income at Danske Bank Asset Management who will share some thoughts and views on pricing, market (il-)liquidity and the issue of fund closures during March 2020.
Some of the questions we want to address are: To what extent has new regulation affected liquidity risks in the bond market? How does volatility of illiquid bonds affect pricing and execution under stressful market conditions? What about the latest trends in building sufficient risk premiums in illiquid assets? What about UCITS challenges from an European perspective? And to what extend can we overcome and deal with temporary suspensions in tradeable funds?
