Some pension fund executives are wondering whether they placed too much faith in their systems — specifically their risk management systems — and not enough in humans. More and more, the answer appears to be yes.
S&P's index and portfolio services chief Alexander J. Matturri Jr. signed on before the market sell-off, but with volatility comes calls for new benchmarks, and he's hit the ground running to meet the demand.
Wall Street firms, crippled by the credit crisis, are exiting the transition management business and leaving the field to traditional fiduciary money management firms with expertise in providing the complex service that directly affects portfolio performance.
The market turmoil might be a blessing in disguise for the world's largest exchanges, as they are enticed to create new listings or absorb smaller competitors following their worst year ever as publicly traded companies.
Fixed-income money managers are cautiously hopeful that the Federal Reserve's unprecedented free-money and debt-purchase policy will help avert a deeper downturn for the credit markets and the economy.
The financial debacles that have roiled markets this year have put an unprecedented emphasis on counterparty risk, and money managers like Metropolitan West's Tad Rivelle believe the best-capitalized brokerage firms will gain the most business.
Money managers, shocked by the fall of Lehman Brothers, are turning to client commission arrangements with execution-only agency brokers to get top-notch research while avoiding the risk of another Wall Street debacle.