Category Archives: Risk and risk management

Wolf Richter: Big Reset Looms for Corporate Credit Market

Collateralized loan obligations and other risky corporate credit assets are trading at tight risk spreads despite stock market upheaval. What gives?

Shareholder Proposals Target Climate Change Risk

Shareholders step up demands for companies disclose more information about the impact of climate change; these calls extend beyond energy companies.

Mr. Market Has a Meltdown

Musing on the market swan dive yesterday.

SEC Stymies Plans to Offer Bitcoin Funds Anytime Soon

SEC staff letter raises detailed concerns about offering products based on bitcoin or other cryptocurrencies to retail investors.

Meltdown and Spectre FAQ: Crapification at Scale

Billions, nay trillions, of processors. What, if anything, to do?

The Inner Workings of the Board: Evidence from Emerging Markets

What makes a board effective?

Exploiting the Elderly: Crapification and Long-Term Care Insurance, Genworth as Case Study

Genworth’s flagging long-term insurance business as a window into the challenges facing even the high-functioning elderly.

Artificial Intelligence and the Stability of Markets

AI may revolutionise risk management and financial supervision, but also threatens to destabilise markets and increase systemic risk.

New Potential Credit Risk Bombs: Exotic, ‘Nonlinear’ and Private Transactions

Beware of old CDO risk re-imaged as “nonlinear finance”.

The Wine Country Fires: Is Pacific Gas and Electric (PG&E) a Rogue Utility?

PG&E, tree-trimming, and profit.

CalPERS Doubles Down on Its Illegal Election, Makes “Absurd” Claim That It Is Above the Law

CalPERS refuses to change its election procedures to comply with California law, and has doubled down on ridiculous justifications instead.

From Credit Risk to Pipeline Risk: Why Loan Syndication is a Risky Business

How pipeline risk poses a danger to banks even in an “originate to distribute” business like loan syndication.

Will Big Data Eat Hollywood’s Lunch?

Hollywood relies ever more heavily on repetitive content.
Will firms like Netflix, Facebook, Amazon, and Google swallow it whole?

Public Pension Funds Regain Some Lost Ground in a Good Year, But CalPERS Lags Peers

CalPERS again falls short for its beneficiaries and California taxpayers.

The Two Capitalisms: Electric Batteries as a Case Study in US Magical Thinking vs. Chinese Vertical Integration

Electric vehicle batteries illustrate how the Chinese use control of raw materials and end markets to built vertically integrated industries.