Insights
The Risk and Return Profile of Index-Linked Annuities: How to Build the Optimal Portfolio
Complex financial products like registered index-linked annuities (RILAs) feature an array of risks and benefits. Evaluating all possible outcomes is essential to developing an optimal long-term RILA investment strategy…
What just happened in world capital markets? – Short-term Turbulence vs. Long-term Consequences
We’ve seen extreme turbulence in the markets over the last week. The Interbank Rate in Japan averaged 0.10 percent from 2014 until 2024, reaching an all-time high of 0.45 percent…
Stagflation Risk is on the Rise – AND – It’s Not Coming Alone
Already two years ago, the Straterix analysis showed that the economic environment at that time carried a high risk of stagflation – a combination of inflation and stagnant growth…
Republic First. Which bank will fail next?
The Global Financial Crisis of 2008/9 was precipitated by subprime mortgage lending and the magic of turning risky loans into investment-grade securities. Could commercial real estate cause the next…
Interview in Risk.Net with Alla Gil: Enhancing Bank Stress Tests with AI and Advanced Analytics
In the interview with Alla Gil, co-founder and CEO of Straterix, the discussion revolves around how banks manage and analyze stress scenarios, emphasizing the traditional three-step process: risk identification,…
The American Way: A Stress Test Substitute for Basels IRRBB – A must read article on #Risk.net
“In the past 15 years, regulators were reflecting on past banking failures. These new scenarios mirror the collapse of SVB – just like how following the 2008 recession, the…
The Budget Brain-Teaser: How to Optimize Capital
It is difficult to make predictions, especially about the future.” Nowhere is Yogi Berra’s deceptively brilliant aphorism more applicable than with financial planning. From households, to governments to financial…
Black Swans vs. A.I.
How is artificial intelligence changing the banking industry? Will bank analysts be replaced by A.I.? And is that a bad thing? A former Credit Suisse analyst and a veteran…
New York Community Bancorp – Is the $1B Capital Injection Enough?
A few weeks ago, New York Community Bancorp (NYCB) was downgraded to below investment grade status. The fears of a continuation of the regional banking crisis have been mounting….
Basel III Endgame and other sequels
It sounds like the title of an action-staved Marvel movie. Yet “Basel III Endgame” is still managing to set pulses racing – at least among regulators and bank risk…
Shock preparation
From natural disasters to financial ones, regulators and governments are almost guaranteed to respond in some capacity. But whether it’s mothballing nuclear power stations, or mandating tougher capital requirements…
Exhaustive Scenario Analysis: What Risk Managers Can Learn From Pilots
What can CROs learn from airline pilots? Quite a bit. Pilots have to know how to take their plane to safety no matter what. In training, they need to…