Looking before you leap

Spanning the various markets and asset classes may be all the rage, but Nicolas Ruellet, product manager for Sophis's VALUE product, explains what one needs to consider before jumping into multi-strategy, multi-asset class trading.

An increasing number of hedge funds are trading cross-asset today: multi-strategy and macro funds now account for roughly 20% of hedge funds and assets under management worldwide.

This new landscape has a direct impact on hedge funds' selection criteria, and systems in turn have evolved to support the changing environment.

There are at least six areas of system performance to consider: instrument coverage, risk requirements, automation of operations, quality of data, simplified architecture and

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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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