Counterparty risk and the sell-side

On the sell-side, the bulge-bracket banks are able to divert sufficient resources to in-depth monitoring of counterparty risk, whereas there are suspicions the smaller banks are not matching this level of commitment.

While most large banks would like to imagine themselves as a step ahead of the rest of the market when it comes to managing counterparty risk, the Lehman Brothers bankruptcy caught everyone by surprise. For many dealers the crisis revealed the extent of work which still needed to be

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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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