Global fund managers sharpen bank scrutiny following crisis -survey

Global fund managers are exploring ways to spread their counterparty risk, with many regularly monitoring the credit ratings of their dealer banks following the recent banking crisis, according to an industry survey released on Wednesday. Concerned that possible future bank failures could cause short-term liquidity squeezes or leave them without a provider for foreign exchange services to make payroll or key vendor payments, 80% of fund managers are now looking to diversify their counterparties, according to the 2023 MillTechFX survey.