Lessons from the Dash for Cash

FMCR’s Ian Tyler shares his thoughts:-

There is a lot of interesting material in the attached Bank of England report looking primarily at how policy makers can improve liquidity resilience within the non bank sector?

This is a much better report than earlier versions as it is honest enough to cover such difficult issues as the lack of transparency in margin calls by both CCPs and other major derivative players.

The report includes detailed recommendations as to how open ended funds from MMFs to illiquid assets can improve their liquidity risk management frameworks. An area in desperate need of improvement.

Anybody interested in the subject of liquidity risk and how markets are interconnected should read this paper: https://cutt.ly/Im2VSae

For a private discussion with our liquidity risk management experts, please contact info@fmcr.com.