The trace race

The concept of traceability has been a great success in the food industry. Would its adoption by the structured products industry be the quickest way to restore confidence in European markets and help a shattered banking sector? Participants at last month's Structured Products Benelux conference in Luxembourg believe so. Richard Jory reports

What are the roots of the current financial crisis? Many commentators blame low interest-rate policies, but one should also look to excess liquidity in the system, the governance of incentive schemes, holding excessive risk, illiquidity and flaws in monitoring. So said Hugues Pirotte, academic expert at the Luxembourg School of Finance and professor at the Solvay Business School, citing a list compiled in an extended workshop that opened the Structured Products 2009 conference in Luxembourg on

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Credit risk & modelling – Special report 2021

This Risk special report provides an insight on the challenges facing banks in measuring and mitigating credit risk in the current environment, and the strategies they are deploying to adapt to a more stringent regulatory approach.

The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

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