Admin

Evaluating Bank M&A Outcomes Under Uncertainty We propose a structured methodology to support robust, defensible conclusions in this context. Rather than relying solely on point estimates, comparable multiples, or base-case synergy assumptions, the framework evaluates transactions across a full distribution of forward-looking scenarios. Read the full article on LinkedIn: The New M&A Analytics that ‘Nail…

At Straterix, we have built some of the most powerful tools for generating forward looking scenarios. These tools not only enable more efficient stress tests and risk-aware strategic planning, but also make it possible to ask meaningful “what if” questions and obtain highly insightful results within minutes. Given the widespread concern that current AI related…

On October 24, the Federal Reserve unveiled a landmark proposal aimed at enhancing the transparency and accountability of its annual supervisory stress tests – addressing long-standing industry concerns about opacity and unpredictability. At a time when banks and regulators face mounting pressure from evolving risk dynamics, the proposal seeks greater predictability so banks can plan capital and lending strategies with…

In the shaky economic environment we’re currently in, what could be the trigger for the next liquidity crisis? Last week we published an article on private credit here that received a lot of attention. This week I was happy to contribute Straterix’s view on the effect of stablecoins on bank deposits to Risk.net. We don’t see…

The Office of the Comptroller of the Currency (OCC) is aiming to reinvent how it supervises banks — shifting from a “check-the-box” compliance approach toward one that focuses on the biggest, most complex financial threats. This change couldn’t come at a more critical moment. Because as the OCC sharpens its focus, markets are showing early…

Private credit has evolved from a niche alternative into one of the fastest-growing asset classes in global finance. With assets under management exceeding $1.7 trillion across the U.S., Europe, and Asia, it occupies a position between public credit markets and traditional bank lending. Its rise has been fueled by banks’ retrenchment after the global financial…

In today’s interconnected financial environment, institutions operate with sophisticated operational risk databases and state-of-the-art cyber defenses. Yet the real challenge lies not merely in detecting threats, but in understanding the long-term consequences of seemingly isolated incidents. Operational disruptions, governance failures, or cyberattacks rarely exist in a vacuum; their impact is often shaped—and amplified—by the broader macroeconomic and…

Comprehensive scenario analysis, fueled by fast, top-down stress tests, can enable firms to project the effects of trade wars quantitatively – not just by estimating near-term recession probabilities but also by offering a clear view of tariffs’ broad implications for both the macroeconomic landscape and financial markets. In the current environment of heightened market volatility…

Recent abrupt changes in U.S. economic policies have sent shockwaves across both equity and credit markets, affecting both private and public sectors. The corporate debt and U.S. leveraged loan markets have been rattled by heightened volatility and declining investor confidence. Persistent inflationary pressures have further fueled the market downturn, even raising concerns about a looming…

The Federal Reserve is emphasizing a more transparent approach to its supervisory stress testing, via its 2025 Comprehensive Capital Analysis and Review (CCAR). However, despite the Fed’s aim for increased transparency, banks may still face discrepancies between their internal stress test results and those produced by the Fed. To bridge this gap, financial institutions can and should…

There are many developments concerning AI products that rattle the markets such as DeepSeek unveiling, , allegations of cheating, intense competition over AI platform performance, and a surge in M&A activity targeting AI-driven companies. However the most critical issue of AI adoption concerns the risks of over-reliance on machines. Science fiction has been exploring AI for over…