Machine learning
Machine learning prediction of loss given default in government-sponsored enterprise residential mortgages
The authors apply machine learning techniques to Loss Given Default estimation, identifying key variables in LGD prediction and evaluating the performance of various models.
Risk Technology Awards 2024: AI hopes and holdups
Live AI use-cases are limited, as vendors warn on over-regulation
Chartis RiskTech AI 50 2024
A Chartis report exploring the landscape of artificial intelligence and its adoption in the financial services
CVA sensitivities, hedging and risk
A probabilistic machine learning approach to CVA calculations is proposed
Podcast: Alvaro Cartea on collusion within trading algos
Oxford-Man Institute director worries ML-based trading could have anti-competitive effects
New data techniques to turbocharge risk management
Risk management and data management have become central to the broader digitalisation efforts of financial institutions. A robust data strategy has an important role in supporting and enhancing risk management efforts
Quants see promise in DeBerta’s untangled reading
Improved language models are able to grasp context better
An equity-implied rating model for unrated firms
The authors use Merton's distance to default as the basis for new model with which to assign credit ratings to firms which are not traditionally rated.
FX automation plans focus on predictive analytics – panel
Panellists suggest banks could explore AI tools for foreign exchange pricing
The coming AI revolution in QIS
The first machine learning-based equity indexes launched in 2019. They are finally gaining traction with investors
Hedge fund’s bots hunt for ‘non-linear’ trade signals
Boutique investment firm Goose Hollow uses LLMs to scrape thousands of news sources, searching for links that others miss
Banks, vendors mine AI for corporate FX hedging
New machine learning algos can help corporate clients adjust hedging ratios, but tech’s effectiveness is limited by data quality, experts caution
Risk management strategies for revenue maximisation in financial services
A white paper discussing proactive risk management in financial services, focusing on automated solutions and artificial intelligence/machine learning technologies to enhance revenue assurance and operational efficiency
BMO’s cloud migration strategy eases AI adoption
Canadian bank is beginning to roll out GenAI tool for internal use cases
Execs can game sentiment engines, but can they fool LLMs?
Quants are firing up large language models to cut through corporate blather
How Ally found the key to GenAI at the bottom of a teacup
Risk-and-tech chemistry – plus Microsoft’s flexibility – has seen US lender leap from experiments to execution
Industry warns CFTC against rushing to regulate AI for trading
Vote on workplan pulled amid calls to avoid duplicating rules from other regulatory agencies
Top 10 operational risks for 2024
The biggest op risks for the year ahead, as chosen by senior industry practitioners
The bank quant who wants to stop GenAI hallucinating
Wells Fargo model risk chief thinks he has found a way to validate large language models
Quants are using language models to map what causes what
GPT-4 does a surprisingly good job of separating causation from correlation
Iosco gears up for ‘intensive work’ on AI regulation
Watchdogs risk ‘falling behind the curve’, secretary-general warns; FSB also working on guidance