by Jonathan Leonardelli, FRM | Sep 26, 2024 | Model Development
This blog series explores the stages of the Model Development Lifecycle so that you understand the components of model development and maintenance as well as where potential sources of model risk can reside. Read the first post here for an introduction to the series...
by Regitze Ladekarl, FRM | Sep 23, 2024 | Risk Report
The Fed cut its target rates this week. It was long-awaited and bigger than expected, both literally and symbolically. In number terms, the rates were lowered half a percentage point. In meaning terms, the rate cut was a turning point into the rarely visited Soft...
by Jonathan Leonardelli, FRM | Sep 19, 2024 | Model Development
This blog series explores the stages of the Model Development Lifecycle (MDLC) so that you understand the components of model development and maintenance as well as where potential sources of model risk can reside. Read the first post here for an introduction to the...
by Regitze Ladekarl, FRM | Sep 16, 2024 | Risk Report
A good and true apology* is hard to come by. This week, however, Team Regulator gave it a try. We have reported on the US proposals for the Basel III endgame and the G-SIB surcharge many times before so here’s an ultra-short recap: Summer 2023: Team Regulator proposes...
by Regitze Ladekarl, FRM | Sep 9, 2024 | Risk Report
WSJ recently posed the following math problem: If an office building in Springfield has lost 60% of its value over the past 3 years, and it has a dry cleaner named Dylan’s (after the owner’s nephew) on the ground floor, and the third-floor co-working space has an...
by Jonathan Leonardelli, FRM | Sep 5, 2024 | Model Development
Few people know that model development has a lifecycle (MDLC) just like software development. What is the Model Development Lifecycle? The model development lifecycle is a process that any modeler or risk manager should be aware of when models are being created and...
by Regitze Ladekarl, FRM | Sep 3, 2024 | Risk Report
Don’t you just love it when, at the end of a soap opera season, it turns out that the four side-stories are connected, and the manager from the corner store is the long-lost twin* of the heir to the billion-dollar empire, and they will now have to share the fortune...
by Regitze Ladekarl, FRM | Aug 26, 2024 | Risk Report
There used to be some correlations we could rely on; when you didn’t bring your umbrella it rains, they announce a new smartphone the week after you bought the latest one, and when the dollar is up, gold and oil are down. So far in 2024, the gold price has gained more...
by Regitze Ladekarl, FRM | Aug 19, 2024 | Risk Report
For those still holding their breath: yes, the headline inflation rate did come down, and yes, we are back on ramp to interest rate cuts soon, and yes, soon is firming up to mean September. And soon needs to be soon because there are debt burdens starting to throw...
by Regitze Ladekarl, FRM | Aug 12, 2024 | Risk Report
We were so close! The economic floor routine to stick a soft landing—taming inflation with high rates without causing a recession—seemed on track and within reach and expectations were running high and then a few things happened in rapid succession: BoJ hiked their...
