Hello,
I am measuring liquidity risk of the assets of a fund. To complete the analysis I would like to be able to tell if the sell of the assets is enought to pay back the money of people who withdraw money from the fund (Measuring liability risks).
So I am interested in modelling the liability risk of a fund.
I would like to forecast the withdraws. Have you ever read about that topic? Do you have a methodology to suggest ?
Input I have: historic withdraw of the fund.
Could you provide some more details please?
Maybe its just me, but in my humble opinion, I think your question translates to - Are marked-to-market assets of my fund > Expected withdrawals? Which obviously as you know doesn’t make any sense for an existing fund.
I’ve only seen liability risk being factored in cases where there’s a an obligation to pay for damages in service contrcts i.e. when lending to real estate operators, etc.
Maybe I’m completely missing the point - would be great if you could provide some more information.