Coronavirus Crisis: An Additional Headwind for the Asset Management Industry

Financial markets around the world have been roiled by the uncertain impact of the ongoing Coronavirus Disease (COVID-19) pandemic, with most global equity market indices having seen significant declines in their valuations since the beginning of the outbreak. Fixed-income markets have also been affected, both by fears of increased corporate defaults and by investors selling fixed-income securities to generate cash. Not surprisingly, the disruptions in the financial markets have adversely affected a wide range of investment management companies (IMCs), ranging from mutual fund managers to hedge funds to those specializing in alternative asset management.