Luis Viceira, George E. Bates Professor of Business Administration at Harvard Business School, interviewed by Brendan Maton, financial journalist.
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Is the real lesson from this crisis that liquidity was the big problem? Liquidity was not the only problem. But I think a lesson that investors have to derive from this crisis is that it is very important to be aware of what your liquidity situation or the liquidity situation of your portfolio is at any given point in time. I think some investors have learned the hard way that it is not the same thing to invest in an equity vehicle that is liquid versus an equity vehicle that is illiquid. And if you also have an illiquid portfolio and are going to have to sell it into an illiquid market, as has been the situation for ma
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