A Clearwater Analytics survey of 250 senior executives and fund managers in the US, Europe and Asia Pacific found 88% had increased spending on fund stress testing over the past year, citing rising interest rates, limited liquidity and geopolitical instability. To reduce the risk of severe losses, 56% of asset managers plan to use protective puts, 54% will focus more on defensive stocks, 49% will enhance quantitative risk modelling or stress testing, and more than a third will use volatility products tied to the CBOE Volatility Index. Kirat Singh, president of risk and alternative assets at Clearwater Analytics, said traditional risk assumptions are being challenged, so managers need faster access to accurate consolidated data.
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