Fund industry defends use of credit lines as liquidity backstop
Concerns about systemic risk unjustified, say asset managers
Investment managers have defended the use of bank credit lines as a liquidity backstop, despite concerns from regulators that such facilities might add to systemic risk.
The UK's Financial Conduct Authority and the US Securities and Exchange Commission are understood to be probing asset managers about the credit lines they have in place and how often they use them.
But buy-siders say the facilities are small compared with their total assets under management, are rarely used and reduce risk
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