Lehmans three years on: 'Something horrid ahead?'

Darwin's David Jane, JPM's Nick Gartside, MAM's Martin Gray, and Andrew Cole of Barings look at the similarities and differences between today's market and economic backdrop and the crisis that followed the Lehman collapse in 2008.

David Jane, manager of the Darwin Multi Asset fund In terms of the difference in trading volumes between now and then, you have never seen anything like it. The market today is doing half the volume of trades it was doing back then because the liquidity provision of investment banks is a lot less, there are fewer hedge funds trading because many have closed, and there is very low liquidity. Meanwhile, volatility was actually abnormally low during 2003-2007, rather than being abnormally high during the credit crisis, so it has moved closer to its historic norm. From an economic poi...