SPEED is of the essence if you are to profit from investing in a crisis. The window of opportunity has narrowed significantly since 2008, said Rich Nuzum, Mercer’s executive director of investments and global chief investment strategist.
During the 2008 global financial crisis, investors had two to six months to pick up distressed and high-yield debt, and private market assets in the secondary market.
“With the Covid drawdown, we had two to six weeks; with the gilts crisis, two to four days. And with the US mini-banking crisis, it was also days, not weeks.”
Mercer clients, who are asset owners and institutions, run through crisis scenarios to model likely behaviours of markets. “We spend...
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