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By Piotr GIEMZA-POPOWSKI, Allison NORIE, Xavier MANGEARD Samuel BORALEVI-MERLE, Arendt Medernach*
Liquidity management used to be just one topic among many. Today, it is the topic. For over a decade, international regulatory bodies – notably IOSCO(1) and the Financial Stability Board(2) – have highlighted the structural tension between offering frequent redemption rights and investing in less liquid, higher-returning assets. These concerns are grounded in economic theory,(3)(4) as investors value the ability to redeem at will and institutions that turn less liquid assets into liquid claims are inherently fragile under stress.
The issue has been centre-stage since COVID-19. The industry weathered the COVID-19 crisis reasonably well...
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