Wednesday webinar at one: Stressing the corporate bond market - the role of investment funds (Fully Booked)
Wed 17 Jan 18 at WEBINAR, Online

Since the financial crisis, open-ended investment funds have continued to grow and increase their share of the corporate bond market. While providing a valuable source of funding to the real economy, this may create risks in stressed conditions. During this presentation, Yuliya Baranova and David Baumslag, both of Bank of England, will describe a pilot exercise in which they model the impact of large scale redemptions from open-ended funds on corporate bond market functioning, accounting for how funds may interact with dealers and hedge funds in this market.

They find that large-scale redemptions from funds could have a material negative impact on bond prices, and, in certain extreme but plausible scenarios, could overwhelm dealers’ capacity to absorb sales, resulting in market dysfunction. This illustrates how the behaviours of market participants could amplify risks, even when they may be safe and prudent on an individual basis – in other words, the system may not be the sum of its parts.
Yuliya Baranova
Senior Economist, Bank of England

Yuliya Baranova is a senior economist in the Financial Stability, Strategy and Risk Directorate (FSSR) of the Bank of England. She has worked in the Bank since 2012, focussing on the assessment of financial stability risks from financial markets and non-bank financial institutions. Yuliyais the author of multiple publications in the area of market liquidity and has presented her work at industry, academic and policymaker conferences. She holds an MSc in finance and economics from LSE.

David Baumslag
Senior Analyst, Bank of England

David Baumslag is a senior analyst in the Financial Stability, Strategy and Risk Directorate (FSSR) of the Bank of England. He has worked in financial regulation since 2008, specialising in macro-economic risk analysis, stress testing and capital management. Prior to this, he held a broad range of roles in the financial services and technology consulting sectors.Davidholds a MA from Cambridge University, an MBA from Rotterdam School of Management and a PhD from the University of Calgary.

When and where?

Wednesday 17 January 18

Registration: 12:50
Event: 13:00 - 13:40

WEBINAR, Link will be emailed closer to the time, Online
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Member - £0
Non-member - £20

This is eligible for 0.75 CPD hours