Latest on Investing
Stablecoins: good as the buck, or breaking the buck?
Collateral concerns and iffy auditing have raised fears of a ‘de-pegging’ event – and possible contagion across crypto and beyond
Wanted: radical ideas for inflation modelling
Hedge funds echo Mervyn King’s calls for a new approach to inflation modelling post-2022 crisis
UK life insurers pass BoE stress test with 64% hit to surplus capital
Sector deemed resilient, but plausibility of some management actions questioned
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Quotes
How does a creature with a few hundred thousand neurons compared to the 87 billion neurons that humans have, make decisions so differently?
Charlie Drew, Swarm Technology, on what investors can learn from ants
There’s a lot of stuff that can happen in the marketplace that just can’t happen at a poker table
Todd Simkin, Susquehanna, on using game theory in trading
[Pensions] advisers were quite quick to push private assets. [Some schemes] are probably ruing those decisions.
Pavan Bhardwaj, Ross Trustees
Editor's Choice
Can algos collude? Quants are finding out
Oxford-Man Institute is among those asking: could algorithms gang up and squeeze customers?
Big Figure
Libor mismatch stings CLO investors
The basis between one-month and three-month US dollar Libor widened from 11 basis points to an average of 71bp during November. Distributions for CLO equity tranches, whose holders only receive payment once more senior debt holders are paid, reached their lowest since the onset of the Covid-19 pandemic.
Read the full articleRisk Management
Ion: after the hack, the clean-up
Some clients now using Ion systems again, but synchronising data with CCPs could take days
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How to stop stablecoins from hoarding precious collateral
The $1 trillion shortfall if private equity bets turn sour
Our Take
Gamma zero: an overlooked signal of volatility is flashing red
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