(Opalesque) The European Fund and Asset Management Association (EFAMA) and the International Capital Market Association’s (ICMA) Asset Management and Investors Council (AMIC) published on 19 July a joint paper analysing how and why leverage is used in investment funds in Europe, how firms address in practice related risks and the technical tools used to measure leverage and improve the efficient management of their portfolio.
Today’s report addresses the theme of leverage as it forms a significant part of the international regulatory concern about systemic risk in investment funds. The FSB and IOSCO seek to identify consistent measures of leverage to facilitate more meaningful monitoring for financial stability purposes.
