Institutional Investor (May Issue)
Today’s investors are in some ways wiser from the lessons of 2008. “Investors are paying more attention to tail risks; they are more conscious of the need to carefully manage liabilities as well as assets; and they are appropriately more skeptical of reliance on third parties like rating agencies.” In other cases, however, investors have yet to learn the right lessons. Institutional Investor identifies four of these as “relying on stop losses, buying options, stress testing and crowding into certain trades.”
Today’s investors are in some ways wiser from the lessons of 2008. “Investors are paying more attention to tail risks; they are more conscious of the need to carefully manage liabilities as well as assets; and they are appropriately more skeptical of reliance on third parties like rating agencies.” In other cases, however, investors have yet to learn the right lessons. Institutional Investor identifies four of these as “relying on stop losses, buying options, stress testing and crowding into certain trades.”
Tags: Options, Rating agencies, Stop losses, Stress tests, Tail risk
