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Current Credit Risk fiasco can be traced back to Regulator when they recategorised #AccrualSchemes as #CreditRisk. That gave open mandate to FMs to take this risk.
It was up to #Advisors and #Investors to have got lured by higher yields with higher risks or not chased yields .
It was up to #Advisors and #Investors to have got lured by higher yields with higher risks or not chased yields .
This started when Regulator merged Institutional and Retail plans in the garb of protecting Retail Investors. Not realizing both segments have different risk appetite and knowledge levels
Ideally, they should have continued these two plans of institutional and retail (maybe same expense ratios) but different investment mandates to FMs.
