White Papers

Flight to Quality: Mitigating Risk, Engendering Confidence
In 2008, Americans gave bankers their lowest marks ever for honesty and ethics, and consumer confidence in U.S. banks dropped nine points.¹ Inarguably, we are in the midst of one of the worst financial crisis since the Great Depression, which continues to erode consumer confidence in financial institutions. During times of extreme economic and market turmoil, investors typically move their assets to low risk investments. These so-called ‘Flight to Quality’ episodes generate high trading volumes as well as jittery, transient customers. The result is both opportunity and peril for financial services firms as they try to accommodate incoming and outgoing waves of customers. Banks, hedge funds, private equity and other financial services firms, frequently find their internal systems struggle with the burdens of Flight to Quality.
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