SaxoTV

We may be heading for another financial crisis but don't blame China

869 views
August 28, 2015 asset, asset backed securities, asset management, asset purchases, assets, bond, bond buy, bond buying, bond investing, bond investment, bond investor, bond investors, bond market, bond markets, bond portfolio, bond purchase, bond purchases, bond strategy, bond yield, bond yield rate, bond yields, bond-buying programme, bondbuying, bondmarket, bonds, bonds and equties, bonds market, bonds to equities, bonds update, bonds v equities, bonds v stocks, china, china banks, china economy, china equity market, china gdp, china growth, china manufacturing, china outlook, china policy, china politics, china rates, china slowdown, china stock market, chinese, chinese economy, chinese growth, crisis, emerging, emerging economies, emerging market, emerging market bond market, emerging market bonds, emerging market crisis, emerging market currencies, emerging market economies, emerging markets, emerging markets bond markets, emergingmarkets, equities, equities trading, equity, equity index, equity market, equity markets, equity portfolio, equity research, equity strategy, equity trading, fed, fed meeting, fed policy, federal reserve, federal reserve rate hikes, federalreserve, finance, finance sector, financial crisis, financial market, financial markets, financials, fixed, fixed income, fixed income bonds, fixed income portfolio, fixed income trading, fixed income v equities, fund, fund analysis, fund managers, funds, investing, investment, investment banking, investment strategy, investors, risk, risk appetite, risk assets, risk reward, risk taking, riskappetite, risks, risks in trading, saxo, saxo bank, saxo tv, trading, tradingfloor.com
On Monday the world witnessed billions of dollars being wiped off global markets as everything from equities to bonds were sold. But Saxo's Simon Fasdal doesn't believe China was the real cause. He thinks the very violent intraday moves were sparked by big funds unloading risk at the same time, because they are all following the same risk model. 

In this video, Fasdal warns that nobody knows exactly how many asset managers are using this model. He says that there is potential for it to become a self-propelled volatility creator which could escalate into a global financial disaster.