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U.S. Asset Manager Warns Over “Risk Parity”

August 24, 2015 : Permanent Link

(Financial Times) AllianceBernstein, a big US asset manager, has warned that the swelling popularity of an investment strategy known as “risk parity” is exacerbating the fragility of financial markets and worsening sell-offs. Equity and bond markets have been hit hard by fears over sliding commodity prices, China’s economic slowdown and the resulting emerging market struggles this month, heightening concerns of hidden faultlines in markets caused by certain strategies.

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