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George Rex
The committee found that hedge funds encountered mandatory short positions because of severe market volatility, yet have typically managed the circumstances.
“Uncertainty has risen,” stated the FPC. “The likelihood of adverse events and the manifestation of their outcomes have grown.”
The committee made this conclusion after analyzing how investment banks, insurance firms, hedge funds, and other investment companies handle different stress situations. The FPC voiced worries that these market participants might not be adequately ready for significant crises.
Concurrently, committee members observed that certain investors had lowered the quantity of risk assets in their portfolios prior to U.S. President Donald Trump's declaration of new tariffs and were consequently less impacted by market fluctuations.
source: ft.com
“Uncertainty has risen,” stated the FPC. “The likelihood of adverse events and the manifestation of their outcomes have grown.”
The committee made this conclusion after analyzing how investment banks, insurance firms, hedge funds, and other investment companies handle different stress situations. The FPC voiced worries that these market participants might not be adequately ready for significant crises.
Concurrently, committee members observed that certain investors had lowered the quantity of risk assets in their portfolios prior to U.S. President Donald Trump's declaration of new tariffs and were consequently less impacted by market fluctuations.
source: ft.com
