Tweet
Link
. .
ZURICH (Reuters) - Wealthy investors are still exposing their millions to plenty of risk in financial markets, private bankers say, greedy for returns with the help of hedge fund and private equity products.
Multi-millionaires and billionaires are looking for a yield on their assets of around 8 percent, according to their bankers, while clients who have acquired their wealth from their own companies usually chase even higher yields.
"Private clients are continuing to take on risk. I don't think we're in an environment where risk appetite is decreasing," said Ernest Boles, chief investment officer at Citigroup's private banking unit.
Stock markets have reached their highest levels since their collapse in 2000 and central bankers are warning markets have not priced in enough risk and investors who have borrowed cheaply might get burnt once sentiment turns.
But the world's ultra-rich seem unfazed by such warnings, bankers said, even if they would feel the pain from a market collapse more than their institutional counterparts as they have less money to ride out a bear market.
Multi-millionaires and billionaires are looking for a yield on their assets of around 8 percent, according to their bankers, while clients who have acquired their wealth from their own companies usually chase even higher yields.
"Private clients are continuing to take on risk. I don't think we're in an environment where risk appetite is decreasing," said Ernest Boles, chief investment officer at Citigroup's private banking unit.
Stock markets have reached their highest levels since their collapse in 2000 and central bankers are warning markets have not priced in enough risk and investors who have borrowed cheaply might get burnt once sentiment turns.
But the world's ultra-rich seem unfazed by such warnings, bankers said, even if they would feel the pain from a market collapse more than their institutional counterparts as they have less money to ride out a bear market.