NEW YORK/LONDON - Global fund managers are exploring ways to spread their counterparty risk, with many regularly monitoring the credit ratings of their dealer banks following the recent banking crisis, according to an industry survey released on Wednesday.
That number rises to 100% for chief executives, indicating a strong desire from the heads of these institutions to review their banking setup to ensure proper systems are in place to mitigate the impact of any future crisis, the survey said. Since then investors across the board have been sharpening their scrutiny of banks and strengthening their cash-management guidelines to plug the gaps exposed in their approach to counterparty risk and liquidity management.
Danny Olds, a director in the treasury practice section at Lionpoint, a boutique consultancy, said March's crisis elevated interest in treasury management, a long-overlooked area of the industry. Bill Gates' former assistant is the world's 5th-richest person — and he's close to overtaking the Microsoft cofounder