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Sponsor's article > Basel II: change is good

Basel II is an opportunity for banks to modernize and upgrade their risk practices, policies and technology to manage risk in a holistic fashion. Alliance & Leicester, a UK based financial institution with assets of over €55 billion, took early advantage…

Collateralization: A safety net for investors?

The proliferation of credit derivatives has given rise to the widespread use of collateralization—posting collateral against the risk of default. But as Saskia Scholtes reports, this practice may be creating its own risks.

Collateralization: A safety net for investors?

The proliferation of credit derivatives has given rise to the widespread use of collateralization—posting collateral against the risk of default. But as Saskia Scholtes reports, this practice may be creating its own risks.

The Monte Carlo mindset

There is a rich seam to be mined in the provision of tools to calculate counterparty credit risk. Clive Davidson looks at what's on offer so far, and what could be coming on to the market.

VAR: ready to explode?

The SEC plans to force US securities firms to tighten up their value-at-risk reporting. Its decision comes as VAR at the world’s leading financial services firms soared an average 25.8% last year. Who are the biggest risk-takers, and are risk managers…

Basel II Alert - Highlight of Critical Changes

It has been more than six years in the making, but the final text of the Basel II framework has arrived. The Basel Committee on Banking Supervision published the text at the end of June to a mix response from the financial services industry.

A credit loss control variable

Viktor Tchistiakov, Jeroen de Smet and Peter-Paul Hoogbruin explain and demonstrate how the efficiency of Monte Carlo simulation in valuing a portfolio of credit risky exposures is improved by the use of the Vasicek distribution as a control variable. An…

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