Opinion

Should loans become eligible assets in UCITS?

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Comment by Joy Dunbar, Editor of Absolute UCITS

Liquidity sloshing around in markets has of course tightened as a result of the credit crunch and the drying up of easy money.

Notwithstanding the repeated doses of quantitative easing (QE) from the Bank of England and the Federal Reserve, and the long-term refinancing operations (LTRO) of the European Central Bank, it is a trend that seems set to continue – as banks are being encouraged by regulators to deleverage their balance sheets and beef up their cash buffers,