risk management
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.
Validation of Risk Management Models for Financial Institutions, through a set of thoughtful articles, describes how effective structuring and testing of the modeling techniques used in risk management can support better financial decision making.
Inaccessible data and the limits of computing power are only two of the obstacles holding LLMs back.