“The biggest panics … had nothing to do with ‘I’m losing money,’ and all to do with ‘where is my money and can I write a check,'” said Brian McDonnell, global head of pensions at Cambridge Associates. McDonnell and CA’s head of global investment research Noel O’Neill spoke with Pensions & Investments for the magazine’s special report reflecting on the Global Financial Crisis ten years ago.
O’Neill said that he knew there was a crisis looming when it was the second week of June 2007, and an “enhanced cash vehicle” managed by a leading manager of passive strategies froze. “That a vehicle like that — supporting investments such as securities lending collateral and equity market futures, in a segment of the market meant to be safe money — could become illiquid was “a real shot across the bow,” Mr. O’Neill shared.”
Additional insights from McDonnell and O’Neill can be found in other articles from the same report: