The Financial Stability Board (FSB) and International Organization of Securities Commissions (IOSCO) have suggested some significant changes in the operation of open-ended funds, particularly property funds, to protect liquidity. Two notable ones: swing pricing and exit fees.

Nothing fatally stabs financial services the way mismatched liquidities can. In the 1980s during the savings and loan crash, the institutions were caught between heavy long-term mortgage lending and deposits that required much higher rates as the Fed battled inflation at the time. In 1998, Long Term Capital Management collapsed in a liquidity squeeze, got a bailout, and eventually went out of business. The 2008 collapse of Lehman Brothers was another liquidity squeeze. Multiple banks this year closed after assets no longer worth what they were booked at couldn’t keep up with bank runs.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Erik Sherman



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.