Alternative asset managers identified liquidity management as their top priority in a survey conducted by AIMA and State Street. Post-crisis regulations, historically low interest rates and slow growth in the global economy have combined to limit banks' ability to perform their traditional roles as market makers, the report said, in turn affecting broader market liquidity conditions. More than three-fifths of the survey respondents said their investment management strategy has been negatively affected by current market liquidity conditions, while nearly one-third called the impact "significant." This is prompting investors and managers to alter their activities. For example, 53% of asset managers and owners said they are planning to add more liquid investments to maintain exposures.
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