Banks prepare for market risks due to potential US election chaos
Market participants must ensure they have funds set aside to take advantage of the volatility and not be overexposed to any single asset
30 September 2020 - 17:54
New York — Global banks are preparing for the possibility that there will be no clear victor on the night of the US presidential election — a scenario that could spark days or weeks of chaos in global equities and fixed-income markets, several bankers said.
Over the past two weeks, major banks have run simulations to ensure they could cope with a spike in market, liquidity and credit risks, and have been advising clients on precautionary hedges and capital raising strategies if a contested election result on November 3 leads funding markets to dry up...
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