Mutual fund stress testing is not only unneeded, it doesn't even make sense, at least in the eyes of
BlackRock [
profile] vice chairman
Barbara Novick.
| Barbara Novick BlackRock Vice Chairman | |
Novick talked to Simon Jessop and Huw Jones of
Reuters, who report that "The Bank of England is committed to testing the mutual fund sector's overall ability to withstand widespread redemptions, after a survey it conducted last year showed that funds were overly optimistic about their ability to cope."
Novick pushed back against the BoE's idea.
"I'm not sure what stress test people are even talking about when they say 'it will test all funds'. Really? What category? What does that look like? So, I can't even envison what that test would be or why it would be meaningful," Novick tells
Reuters. "If you just look at one piece of the eco-system, you're missing the dynamics of how the market works." 
Edited by:
Neil Anderson, Managing Editor
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