by Regitze Ladekarl, FRM | Aug 5, 2024 | Risk Report
A couple of weeks back, Hurricane Beryl pummelled her way from the Caribbean, through the Yucatán peninsula, and onto the Gulf Coast of the US. The current death toll is 64. Damages are estimated to $6.2 billion. Beryl made its US landfall in Texas, and Houston was...
by Regitze Ladekarl, FRM | Jul 22, 2024 | Risk Report
Back in 1967, there was a Danish variety show featuring a song called The Swings and The Carousels. The chorus ran along the lines of: We need to earn on the swings What we lost on the carousels Referring to the old amusement park, Tivoli, in Copenhagen, it is...
by Regitze Ladekarl, FRM | Jul 15, 2024 | Risk Report
Banks should hold enough capital. That is hard to argue with no matter if you are on Team Regulator or Team Bank. Where it gets a little more contentious is how much is enough. Burned by the Global Financial Crisis in 2008, regulators far and wide tend to equate...
by Regitze Ladekarl, FRM | Jun 24, 2024 | Risk Report
Many of us know the chain of events set in motion, when you tell a toddler in very specific terms what they should NOT do. Sometimes financial markets act in the same way. In this year’s yen episodes, the grown-up is the Japanese top foreign-exchange official, Masato...
by Jenny Harrod | Jun 20, 2024 | Private Capital Forecasting
Overview Private capital investments have grown exponentially over the past decades. Now they are expanding at a steadier pace which necessitates tools with a higher level of confidence and precision to keep optimizing returns. Most people in the private capital space...
by Regitze Ladekarl, FRM | Jun 17, 2024 | Risk Report
Yes, I am that old.* Sometimes, when a group of big economies have been through some tough times together, but then find they are recovering at different speeds, they might have to start lowering their interest rates before the biggest one is ready. That doesn’t mean...
by Regitze Ladekarl, FRM | Jun 10, 2024 | Risk Report
The Risk Report is always excited to dive into news details that validate what it already believes to be true. And if it can be combined with topical lyrics from Queen Bey, it is even better. So, remember the yield curve? The one by all measures has been inverted for...
by Regitze Ladekarl, FRM | Jun 3, 2024 | Risk Report
It is widely felt and reported that housing costs have entered the painful range. Especially more recent home buyers (with less equity built up) and those in areas prone to extreme weather events are struggling, because they are being hit thrice or even quince...
by Regitze Ladekarl, FRM | May 27, 2024 | Risk Report
We all know how it started. Last summer Team Regulator slammed Team Bank hard with a proposal that among other stingers would mean an almost 20% increase—AKA $150bn—in the core capital requirement for Club G-SIB. A G-SIB is a Global Systemically Important Bank. The...
by Jonathan Leonardelli, FRM | May 21, 2024 | CECL
Much has changed since CECL became effective—data has grown, technologies have advanced. While those changes themselves may cause a Financial Institution (FI) to reevaluate its CECL system a more important motivator might be experience. For most FIs, the CECL process...
