The Traderszone Network

Published in TZ Latest News 22 April, 2015 by The TZ Newswire Staff

Fed eyes ability of asset managers to repay in a panic

The Fed is particularly worried about whether the booming asset management industry can withstand a run of redemptions in a financial crisis. Chief among the Fed’s concerns, increasingly voiced in public remarks, is that certain funds held by individuals and institutions will not have the underlying assets sufficient to back investors cashing out in a panic. The amount of Treasury securities in circulation also has dropped after the Fed’s three rounds of bond purchases.

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