Market Fragility and Interconnectedness in the Asset Management Industry

SEC Keynote Address: Buy-Side Risk USA Conference 2017

8 Pages Posted: 18 Aug 2018

See all articles by Scott W. Bauguess

Scott W. Bauguess

University of Texas at Austin - Department of Finance

Date Written: June 20, 2017

Abstract

The relationship between asset management activities and financial stability risks has been a frequent topic of discussion among financial market participants and regulators in recent years. This discussion has arisen in light of the significant growth in the asset management industry and the increased focus on financial stability risks in the aftermath of the financial crisis. My remarks are intended to highlight the underlying economics of these issues to help provide a better understanding of their nature and significance. They are informed by a continuously emerging body of academic research, some of which is being performed by staff at the SEC, and all of which demonstrates the inherent complexities in thinking about potential contributions of asset management practices to market fragility concerns.

Keywords: Financial Stability, Interconnectedness, Asset Management, SEC, FSB, Liquidity, Financial Regulation, Herding, Shadow Banking

JEL Classification: G10, G15, G23, G28

Suggested Citation

Bauguess, Scott W., Market Fragility and Interconnectedness in the Asset Management Industry (June 20, 2017). SEC Keynote Address: Buy-Side Risk USA Conference 2017, Available at SSRN: https://ssrn.com/abstract=3226541 or http://dx.doi.org/10.2139/ssrn.3226541

Scott W. Bauguess (Contact Author)

University of Texas at Austin - Department of Finance ( email )

Red McCombs School of Business
Austin, TX 78712
United States

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