Investors are constantly on a hunt for assets that can improve the risk-adjusted return of their financial portfolios and in times when the economy is performing poorly, there is a demand for assets that have a low correlation with such traditional asset classes as stocks and bonds.
Tradeweb has launched an electronic hedging tool for European ETFs which makes it easier to source, price and trade the basket of underlying bonds needed to create or redeem shares in fixed income ETFs, with the aim of improving their efficiency and liquidity.
The Prudential Regulation Authority (PRA) has found five UK banks have a shortfall of an aggregate £27.1bn, meaning they are below the minimum 7% liquidity required by Basel III legislation.
Renaissance Asset Managers has restricted flows into its Sub-Saharan Fund to existing investors after attracting $40m since the start of the year.
Insight Investment is to close its euro-denominated money market fund to new subscribers.
Legal & General Investment Management has added a dollar-denominated share class to its liquidity fund range.
Pimco says liquidity investors should not cash out now following the US debt downgrade.
Should liquidity still be of paramount importance to investors?
