Check Engine

Risk

Late last week S&P downgraded Rolls Royce from investment grade to junk, citing “prolonged weak profitability”. The perceived risk of investing and dealing with the company at the contract level…

Details

The Liquidity Countdown

Liquidity

Fund liquidity problems witnessed in 2019 with Woodford and H2O Asset Management brought liquidity back into the spotlight. Since then, the focus hasn’t really faded on the issue of liquidity, and if anything, has intensified with the COVID-19 pandemic causing market volatility resulting in several more fund suspensions.

Although 2020 has already seen a number of initiatives intended to address liquidity risk, there are still more to come, with September due to be a particular busy month for risk management professionals.

Details

Short Selling Bans – More Harm Than Good?

Shareholder Disclosures, Short Positions

With the recent market volatility caused by the COVID-19 pandemic, regulators across the EU and in some jurisdictions further afield have been banning short selling for varying periods. Although there are many who are sceptical of the benefits of short selling bans, several EU states including France, Italy, Spain and Austria had bans in place since March with Italy’s CONSOB opting for a ban until 18th June. Germany, along with Britain which still operates under EU rules, held back in imposing market wide bans.

Details

Born in The USA

Risk

First the facts, unemployment claims in the USA have now just hit 36M total as Covid-19 related lockdowns and restrictions rumble on. This is an increase of 3M on the…

Details

Come Fly with Me

Risk

There is an old saying that goes when America sneezes the world catches a cold, well when Warren Buffet sneezes, the markets catch a cold. At Berkshire Hathaway’s annual meeting,…

Details