Side pockets are a portfolio management tool that can benefit both investors and managers alike. But having fallen from grace in the wake of the financial crisis, it is debatable whether they can regain their reputation as a viable liquidity management resource. A number of high-profile UK CRE funds were revalued and suspended trading last week as a result of the UK’s vote to leave the EU. Should the current market unease persist in the UK, it is likely that more funds – particularly open-ended funds with illiquid investments – will bring liquidity management measures into play. The use of side pockets is one such measure that has been touted as a potential – albeit extreme - option for managers. Interview with Oliver Fochler was covered on 12th July 2016 in PriceABS Insights, Structured Credit Investor (SCI) under 'Side Pockets Pros And Cons Debated - Reputation Management' (website requires registration).
| SCI_Sidepockets_12072016.pdf |
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