LONDON (Reuters) – The Bank of England said on Thursday that it and the government needed to make it more attractive for insurers, pensions and funds to make the long-term investments that companies might need to recover from the coronavirus.
Alex Brazier, the BoE’s Executive Director for Financial Stability Strategy and Risk, said many businesses that were borrowing heavily during the crisis would need or want to raise equity finance in future.
Changes to rules which unfairly favoured funds offering immediate redemptions to investors, as well as how insurers could invest, were needed, Brazier said.
“Even investors who should have the longest horizons seem to have a fetish for liquidity and an aversion to really illiquid growth capital assets,” he said.
(Reporting by David Milliken, editing by Andy Bruce)
