How Barriers to Foreign Investments Affect Risk-Taking in International Markets, with Francesca Carrieri
What regulations are at play when financial institutions, hedge funds, mutual fund managers, and others invest in stocks and businesses in another country—and who do those regulations ultimately benefit? Despite protecting both foreign investors and countries’ domestic markets, regulatory constraints still present certain barriers to foreign investment, especially in times of market stress, inflation, and increased interest rates. Desautels Professor Francesca Carrieri examines the dynamics of global market integration before and after the 2008 financial crisis, asking what level of risk will foreign investors take today in the name of diversification of their portfolios? "What we can do is strengthen the financial system overall, but also make sure that, under certain conditions, institutional investors have the liquidity necessary to strengthen their underlying positions,” says Carrieri.Read more on Delve and read the transcript. Delve is the official thought leadership platform of McGill University's Desautels Faculty of Management. Delve's Managing Editor, Robyn Fadden, is the host for this episode. You can find out more about Delve at delve.mcgill.ca. Subscribe to the Delve McGill podcast on all major podcast platforms, including Apple podcasts and Spotify, and follow DelveMcGill on: LinkedIn, Facebook, Twitter, Instagram, and YouTube. Hosted on Acast. See acast.com/privacy for more information.