How Do Investors React During a Crisis?

A look back at investor behavior following the collapse of Lehman Brothers in 2008

Sovereigns Turning to Debt Capital Markets to Launch Relief Programs

A look back at investor behavior following the collapse of Lehman Brothers in 2008

May 2020

In the immediate aftermath of the Lehman collapse, global investors sold securities in the U.S. and Europe but not in Asia or the Rest of the World. In particular, growth investors and alternative investors were the largest sellers, and passive inflows continued. Investors with longer-term time horizons, as evidenced by their low-turnover style, also remained invested in the market.

 

We looked at these trends from Q3 2008 in an effort to understand how investors may respond to COVID-19. As investors continue to refine their response to this crisis, fund flows will indicate their thinking. In our Global Investor Relations Advisory (GIRA) group, we use this information to help our clients interpret how current investors in their companies are reacting, and where potential investors may be found.

 

More complete data from 2008 on the specific buyers and sellers of equities is available to our clients, as is the new information on fund flows from the highly volatile first quarter of this year. Please contact your relationship manager or GIRA team member for more information on past trends, a discussion of current fund flows, and up-to-date investor targeting specific to your company and situation.

Net buying and selling activity during Q3 2008

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