Insights
Building Consensus on Stress Testing: The Fed’s Path to Transparency and Resilience
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….
Destabilising: is stablecoin deposit drain a bank funding risk?
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…
Private Credit, OCC Reinvention, and the Next Hidden Thread
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 Hidden Risks of Private Credit – and How to Spot Them
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,…
Cascading Risks and the Need for a Holistic Approach
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…
Cascading Risks and the Need for a Holistic Approach
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…
Remember the Downside: Rethinking CLO Risk
CLO tranches are gaining substantial shares in investment portfolios, but their significant downgrade risk is often underestimated. It is therefore critical to implement a more dynamic approach to risk…
Rapid Stress Tests: A Solution for Quantifying the Impact of Tariff-Induced Volatility
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…
Striving for Stability Amid a Perfect Storm: How to Align Risk, Lending and Investing
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…
How to Make Stress Tests More Constructive and Informative
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,…
Integrating AI and Human Expertise in Strategic Risk Management – the Cyborg Approach
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…
Tokenization: Benefits and Risks
Tokenization has the potential to revolutionize markets, primarily through the application of blockchain technology. It allows assets – particularly high-value ones like real estate, art, and company shares –…