IMA chair warns industry to heed crunch lessons

IMA chairman Robert Jenkins warned the industry against using open-ended structures for less liquid ...

IMA chairman Robert Jenkins warned the industry against using open-ended structures for less liquid asset, speaking at the body's AGM dinner last week. He said it is too early to call an end to the credit crunch but believes there are clear lessons to be taken from it. "For the regulator, it is the pernicious power of leverage. For the asset manager, it is the need to understand what we are buying. If you don't understand it, don't buy it. If your client cannot understand it, don't sell it," he added. On product development, he highlighted the industry's tendency to launch products at...