Risk management, valuation and transparency
Tue Jan 22, 2008
Liquidity risk, stress testing and arrangements with prime
brokers are now more important than ever Neil Wilson This leads
neatly on to the next section where we want to focus on risk
management valuation transparency. Especially during periods of
stress, investors really want to know whats going on in
their funds. What is the current state of the art in this
Clare Flynn Levy I dont know if its changed as a
result of last summer, but from what Ive observed risk
reporting has come a very long way in recent years.
State-of-the-art risk controls are not only about portfolio
risk, although real-time stress-testing and scenario-testing of
the portfolio is extremely important. But the events of the
summer certainly called to attention the management of various
forms of liquidity risk. Tisbury has three prime brokers
in part, this was done in the interest of diversification, but
in part because...
ISSN: 2151-1845 / CDC10004H
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