Defending The Endowment Model: Quantifying liquidity risk in a post

Jun 23, 2010

 
Research and publications

Defending The Endowment Model: Quantifying liquidity risk in a post-credit crisis world

Defending The Endowment Model
This paper discusses the evaporation of liquidity during and after the recent credit crisis and calls into question key assumptions about asset allocation to alternatives that are at the core of the so-called "endowment model." With that collective soul-searching in mind along with the need to strike a balance between risk and return—the paper sets out to determine whether an optimal level for a liquidity allocation exists and, if so, how that changes subject to various investment constraints

Defending the "Endowment Model" (pdf)

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Abdullah Z. Sheikh, FIA, FSA


Director of Research, Strategic Investment Advisory Group (SIAG)
 

 

 
 

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