Mark Gilbert , Columnist

A $1.6 Trillion Fund Warns of a Ticking Liquidity Bomb

The funds industry still lets clients withdraw money on a daily basis. It could pose a systemic risk in the next market downturn.

July 24, 2019 at 9:13 AM UTC

By Mark Gilbert

Mark Gilbert is a Bloomberg Opinion columnist covering asset management. A former London bureau chief for Bloomberg News, he is author of “Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable.”

A crisis is building.
Photographer: Dan Kitwood/Getty Images Europe

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Bank of England Governor Mark Carney says investment funds that promise to allow customers to withdraw their money on a daily basis are “built on a lie.” The chief investment officer of Europe’s biggest independent asset manager agrees with him.

“There is no point denying we are faced with a looming liquidity mismatch problem,” says Pascal Blanque, who oversees more than 1.4 trillion euros ($1.6 trillion) as the CIO of Amundi SA.