This extension of previous research by Morgan Stanley’s Martin Leibowitz and Anthony Bova provides an analysis of the relationships between rebalancing liquidity, portfolio flows, and diversification into illiquid assets.
A more efficient way to rebalance highly diversified multi-asset portfolios – which contain illiquid assets – could be to restrict the rebalancing to exchanges between US stocks and US bonds only, according to new analysis by Morgan Stanley.
Create an account for a more personalised experience. You'll be able to save content to a reading list for later, update your interests so we understand what content and events you'll love, and update your preferences and contact information.
Login via LinkedIn
Use your LinkedIn account to accelerate the process. We'll source your details from your LinkedIn profile.