RESEARCH / Liquidity · Portfolio Design
Liquidity as a First-Class Risk
Treating liquidity not as a trading detail but as a core portfolio design constraint.
Liquidity risk is often understated in models that assume continuous markets. In practice, exit capacity, funding stress, and dealer balance sheets reshape outcomes long before fundamentals change.
We outline how Sophron incorporates liquidity budgets into mandate design, stress testing, and client reporting.
This material is provided for informational purposes only and does not constitute investment advice.