Carney fires warning to fund groups over liquidity

The governor said last night that the trend of increased market volatility “has further to run”, as central banks seek the opportunity to raise rates from historic lows in an environment of uncertain liquidity. Though many fund groups have been vocal about liquidity risks, Carney warned some market participants continue to “take liquidity for granted and crowd into trades”. He said: “The combination of new prudential requirements on dealers and structural changes in markets has reduced market depth and increased potential volatility.  This process likely has further to run, particular...