risk management
By minimizing exposure to severe market downturns, investors can achieve higher risk-adjusted returns, preserve capital, and avoid the psychological toll of significant losses.
Risk managers must look at market and model risk through a single lens to see the complete picture of their market-related investment and trading risks, as well as management costs, complexities, time, and regulatory requirements.
Portfolios that include both productive and scarce assets can deliver similar performance to the S&P 500 with less risk than those that hold only productive assets.
How can investors assess climate transition risk in their portfolios?
The yield curve is inverted, implying an imminent recession, but the stock market is at or near record highs. What can we make of these contradictory signals?
The economy matters, but it matters differently to different investors depending on their distinct objectives, timelines, and asset allocation. And it’s not the only thing that matters.
Most active equity funds do not underperform for lack of stock-picking skill. Rather the investment industry incentivizes them to manage business risk at the expense of long-term portfolio performance.
Not all low volatility strategies are created equal. Many lack the diversification and risk control needed to guard against concentration and macro risk.
Climate risks and the CRE loan market have many points of intersection that spotlight the urgent need for community and regional banks to recalibrate their risk assessment frameworks.
The foreign exchange (FX) swap market ought to be both transparent and well regulated. It is neither.