FSOC Studying Impact of Liquidity/Redemption Risks on Financial Stability

A brief statement from the FSOC announced that the Council continues to examine the risks related to asset management products and activities.  At a telephonic meeting last week, the FSOC discussed “potential financial stability risks related to liquidity and redemption risks and risks associated with the use of leverage by asset management vehicles. The Council also discussed certain factors that could mitigate such potential risks.”  According to the statement, the FSOC “expects to provide a public update on its analysis this spring.”