to quality, and their marked dislocations from both interest rate swap rates and spline curves, suggest that more was going on ( see slide 5 ). dealer balance sheet constraints may have been one factor, especially in the united states. [ 5 ] while there are clear and undisputable benefits from having tighter leverage ratios and capital requirements, which should therefore not be watered down, the post - financial crisis architecture has made it more costly for dealers to warehouse large amounts of securities. in the spring, however, the demand for liquidity was unusually high. the investment fund sector alone sold securities worth almost €300 billion, or 3 % of their assets under management, in the first quarter of 2020 ( see left chart slide 6 ). to some extent, this reflects the fast growth of the non - bank sector in previous years : as funds have increased in size, the extent of procyclical outflows in bad times has increased too. high - yield corporate bond funds, in particular, experienced significant cumulative outflows of more than 10 % of their assets under management ( see right chart slide 6 ). high asset valuations prior to the shock probably exacerbated the selling pressure. but evidence suggests that investment funds sold significantly more securities than those that endinvestors located in the euro area withdrew. this suggests that other factors are likely to have amplified the procyclical selling by investment funds. three such factors stand out, which i will discuss in turn. increasing liquidity risk the first is the mismatch between asset liquidity and redemption policies. bond and equity funds entered this episode with historically low cash positions and other liquid asset holdings, which had declined consistently over previous years, also reflecting wider risk - taking in a search for yield. https : / / www. ecb. europa. eu / press / key / date / 2020 / html / ecb. sp201119 _ 1 ~ 4a1ff0daf9. en. html 2 / 7 20 / 11 / 2020 covid - 19 and the liquidity crisis of non - banks : lessons for the future fund - level analysis by ecb staff finds that the relationship between cash holdings and asset illiquidity was much weaker in the period immediately preceding the pandemic than it had been between 2012 and 2017, indicating that funds with illiquid assets have reduced precautionary cash holdings over time ( see left chart slide 7 ). as a result

percent compared to an appreciation of 26. 4 percent in 2005. the depreciation in the kwacha was largely on account of reductions in emerging market premia due to continued interest rate hikes in major global economies, which resulted in reduced participation by foreign portfolio investors in the domestic securities market, a change in the commodities market sentiment aligned with lowering copper prices and uncertainty associated with the run - up to september 28, 2006 elections and the period immediately following the elections. 5. another important milestone in 2006 was the licensing of credit reference bureau. as you are all aware, one important objective of a credit reference bureau is to help separate truant borrowers from good borrowers thereby help reduce the cost of borrowing in zambia. as you endeavor to deliver daily targets of newspapers and electronic media that are in a hurry to report on a daily basis, there also needs to be some commitment to create a longer term trail of rigorously investigated news that is backed by authoritative evidence. bank of zambia, commercial banks, the central statistics office and other information providers amass a lot of detail that is reflective of what has happened in the economy. i would encourage business and financial writers to monitor and highlight trends that can help us forecast where our economy and business sector is actually headed. if economic indicators are tracked effectively by the media and progress highlighted, it helps to generate even greater confidence in those seeking to make zambia an investment destination. as part of its contribution to improved business reporting last year, the bank of zambia invited mr allan beatie, international business editor, with one of the leading global newspapers, the financial times, to share views with journalists here in zambia. distinguished ladies and gentlemen, there are a myriad of pointers that can be given to where economic, business and financial information can be found. as a starting point, i would like to suggest that journalists look around this room and will no doubt recognize the rich collection of invited guests who hold significant information from which we can learn a lot. these are people who can stimulate debate, provide relevant information, validate it, and explain its proper use. colleagues, allow me now to focus on one key stake - holder mentioned above, namely the business and financial writers ’ fraternity. it is heartening to note that the judges feel that the standards of reporting have improved significantly. i am also pleased to note that those who have been past prize winners are continuing to apply themselves effectively and raising the standards of the profession as a whole. it is therefore my delight