Displaying items for Mar 2020

The rapid – and sudden - spread of the Covid-19 virus has not only caused unimaginable volatility in financial markets but it is forcing investment firms – including boutique asset managers - to implement their worst-case scenario contingency plans. The levels of disruption being caused by Covid-19 is unprecedented in modern times, and sadly there will be casualties, even among once healthy and well-run fund management businesses. Collaboration will be absolutely pivotal if the industry is to get through this turbulent period.  What is NCI doing?Fund managers are facing threats on a number of different fronts, and it is likely…

From the end of 2021, LIBOR, which benchmarks interest rates for a whole stream of financial products including securitisations, loans and derivatives, will not exist. Admittedly, some large institutional asset managers have spent a lot of their time readying their operations for the imminent move to SONIA (Sterling Overnight Interbank Average Rate), an overnight risk free rate (RFR). However, a lot of the industry is still woefully underprepared.Conscious that large sections of the asset management community have given little thought to the LIBOR transition, the Financial Conduct Authority (FCA) published yet another uncompromising ‘Dear CEO’ letter reminding investment firms they…