CFA Institute has published the Covid-19 survey results

CFA Institute has conducted a survey of its global membership to analyze the effects of the current economic crisis caused by the coronavirus epidemic on financial markets and the investment management industry. The survey was done among the CFA Institute global membership in April 14-24th 2020.

As the current situation changes daily and it might be difficult to find well-researched commentaries on the outlooks of this economic crisis, CFA Institute wanted to establish this survey as a means to give a voice of clarity and stability. This is enabled by the professional expertise among the CFA Institute member base and its global nature.

This economic crisis has unique features as it is self-inflicted because of the societal response to the epidemic. In February 2020, when the current crisis started, there was no imminent financial collapse in sight and the global economy was still on a positive growth path, albeit there have been worries on the unhealthy global indebtedness and the loose monetary policy. This spring there world has been through never-before-seen global lockdowns that have had severe implications on many stakeholders.

The themes of the survey are:

• the shape of a potential economic recovery

  Which form of economic recovery may materialize, and will it be hockey-stick, U- or V-shaped?

• the market impact on volatility, liquidity and price formation

  Have the market jitters, following the decisions in various parts of the world to lock down economies, had a direct and immediate impact on financial firms and their investment strategy?

• the interventionism of public authorities

  What is the economic soundness and rationale of the measures from central banks and national governments, whether they will be sufficient or should there be relief for a prolonged period of time?

• the regulatory response

  Would members favor some form of relaxation of the rules, and how they are enforced by market conduct regulators, at a time when firms are already dealing with formidable economic issues?

• ethics in time of crisis

  Could the current coronavirus crisis result in a heightened risk of unethical actions by the investment management industry?

• the role of finance and its business model

  Is the crisis affecting the very foundations of capital markets and the economic model? Is the current economic crisis also becoming a crisis of globalization?

• the active versus passive debate

  In times of crisis should active managers prove their worth by protecting their clients’ capital better than indexed strategies would, since they can make active bets at sector and asset level?

• the impact on employment in the financial space

  Is employment more resilient than feared? How worried should we be? A crucial topic to all finance professionals.

Find out information on these important aspects and results, how they vary around the world and read the report here.

Source: Is the Coronavirus Rocking the Foundations of Capital Markets, June 2020, CFA Institute.