On 12 November 2020, the European Securities and Markets
Authority (ESMA) published a report presenting its analysis
and conclusions on the readiness of certain investment funds that
have significant exposure to corporate debt and real estate assets
to potential future adverse shocks, as well as five priority action
areas which would contribute to their future preparedness.
This report comes as a result of a coordinated supervisory
exercise performed alongside national competent authorities
(NCAs), following a recommendation issued by
the European Systemic Risk Board (ESRB) in
May.
The research indicated that, overall, activities of funds
exposed to corporate debt and real estate, were adequately
maintained when confronted with redemption pressures and valuation
uncertainties, which resulted in a limited number of
suspended subscriptions and redemptions. As highlighted by ESMA,
this should be viewed through the lense of government support
during the period under
