The move away from market consistency

Full circle

tree-trunk-cross-section

"When the facts change," said the economist John Maynard Keynes when challenged on his U-turn on monetary policy during the depression, "I change my mind. What do you do, sir?"

This could be some of today's former market-consistency zealots, for whom the financial crisis changed the facts. The mantra of discounting liabilities at market risk-free rates in regulation has been adapted to dilute their balance sheets' dependence on the vagaries of the market. Some are even calling for a return to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: