In addition, leverage may closely interact with liquidity risk at mutual funds. Open-end mutual funds are characterized by the so-called first-mover advantage: Investors can redeem daily from the funds that hold assets that are less liquid, while liquidation costs are borne by investors remaining in the fund.
I will also discuss the impact of low oil prices on sovereign and corporate debt issuance, and global growth and the implications of these developments for the region. I shall conclude by giving an update on regulatory developments.