Real estate funds vulnerable to liquidity risks, Esma says

European investment funds in real estate and alternative assets are vulnerable and could face liquidity risks in the event of a sudden investor sell-off, according to a senior official at Europe’s main financial markets supervisor, the European Securities and Markets Authority, or Esma. “It is one of the tricky issues here,” he said.

Banks' real estate risks rising

“Risks in real estate markets were on the rise” in 2020 according to the recently-published annual report by the CSSF financial regulator. A range of indicators point to the increased level of debt across the Luxembourg economy and with it, the risks to local lenders. This has driven the CSSF to act to reduce vulnerabilities.