Institutional investors fleeing from risk: market research - Aug. 10, 2007

Institutional investors fleeing from risk: market research - Aug. 10, 2007: "Big investors fleeing risk State Street report: Big-money investors at one-year high for risk aversion. August 10 2007: 8:43 AM EDT LONDON (Reuters) -- Big-money institutional investors have turned more risk averse than at any time since August last year, taking positions they typically do not reverse quickly, State Street data showed Friday. The U.S. financial services firm said its clients, who keep some $13.04 trillion with it as a custodian, have moved into what it called a 'safety first' regime. More markets news... * European stocks in the red for '07 * European banks to inject more cash * America's most dangerous jobs Video More video Vice Chairman of Goldman Sachs International Bob Hormats gives his analysis of the global credit crunch. Play video This is characterized by moving from emerging to developed market equities, embracing bonds and unwinding currency 'carry' trades. Institutional investors tend to take a longer-term view of markets than other investors, so shifts in their strategy can have a significant impact on a market's recovery. The firm said that since September last year investors had been taking positions reflective either of abundant liquidity or leverage opportunities."