Risk USA: Buy-side expresses counterparty unease

Concerns about counterparty risk and its effect on the business of investment firms were raised repeatedly from buy-side market participants at Risk USA , which concluded on Wednesday in New York.

“Counterparty risk is definitely something to pay attention to,” remarked Yury Dubrovsky, chief risk officer (CRO) at Lazard Asset Management, speaking about the challenges facing buy-side CROs, during a panel discussion on October 29.

Before the recent market crisis, counterparty worries were concentrated at sell-side institutions. But the spectacular demise of Lehman Brothers has turned counterparty risk into a leading issue for those on the buy-side, with many firms attempting to trim down

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