Risk.net
Latest on Risk management
Jerome Kemp on the skewed economics of clearing
Only Fed intervention prevented “a really big market disaster” during Covid, says derivatives veteran
Banks fold climate, pandemic and cyber risks into CCAR
OpRisk North America: anchoring idiosyncratic risks to macro scenarios a challenge, say experts
US election scenarios: meltdown fears if poll contested
Crowd-sourced election scenarios show sharp falls and correlation breaks if Trump challenges results
Latest
Quotes
The Fed really stepped in and seriously greased the wheels of the bond and repo markets. Without that, I think we would have been in the depths of a really big market disaster.
Jerome Kemp says the futures industry flirted with disaster during the Covid market meltdown.
I don’t understand why anyone would want to do that early. From the numbers we look at [we] will be hit pretty hard by SA-CCR. It was supposed to be favourable for us; it’s actually going to be neutral to slightly negative.
The head of clearing at a large US bank shares his thoughts on early adoption of SA-CCR.
You put the onus on banks to report, but enforcement authorities don’t have the capacity to handle this volume of reports. It’s a monumental waste of resources.
A fincrime executive at a large global bank says government agencies have much to answer for in the fight against money laundering.
Editor's Choice
Fight against dirty money falters in blizzard of SARs
Authorities are swamped with suspicious activity reports, many of which are never investigated
Big Figure
Covid comparisons
Comparing the backtests on the S&P 500 using Risk.net’s latest set of crowdsourced stress scenarios (constructed by polling readers, and run once again in conjunction with RiskThinking.ai) and the last underlines how views have become more extreme. When Risk.net first asked participants to predict the impact of Covid in late March, the S&P was nearing a multi-year low of 2,191. Yet the range of views then – when markets were still in freefall, and central banks and governments had yet to firm up pledges of trillions of dollars in ultra-cheap credit and other support measures – was far narrower than it is now.
Read the full article7 days in 60 seconds
Covid bank tests, swap fix deferred and SOFR switch
The week on Risk.net, October 17-23, 2020
Receive this by email
Comment
Strengthening supervisory co-operation in derivatives markets
The unintended impact of swap stays on financial stability
Our Take
The long-term effect of Covid-19 on market risk capital
Don’t let a good crisis go to waste