AIMA Liquidity Risk Management Roundtable Series – Understanding the Impact of COVID-19 on Alternative Funds

The first half of 2020 has seen tremendous volatility across many asset classes. This has affected the liquidity risk for funds in different ways, but one key differentiator has been the types of assets that funds were holding. But for each category of assets, the narrative of the COVID-19 experience will have been different.

We think it is time to start to unpack that narrative. AIMA and Citco are hosting a series of liquidity risk management roundtables to gather members to discuss matters such as:

• What factors affected asset prices?
• What were the prevailing market trends that affected those types of assets?
• What effect did policy/regulatory changes since the 2008-2009 global financial crisis have, if any?
• How have investors been reacting – redeeming or adding to positions?
• What other factors were relevant?
• How should liquidity stress testing be adjusted to address recent events?

Through these discussions we would like to gain an understanding of what has happened and what lessons have been learned from it in order to better inform our advocacy work in the area of liquidity risk management.