Insights
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 –…
How to Identify and Mitigate Hidden Risk Concentrations
Both financial institutions and their regulators must deal with risk concentrations. They come in two types: observable and hidden. To manage these concentrations, banks set risk limits on various…
The Cash Management Impact of the Fed’s Rate Cut: How to Minimize Risk and Maximize Return
Now that the Federal Reserve has started cutting interest rates, the shape of the yield curve is going to change – and cash management strategies must be reviewed. Cash management…
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…