Instability in Capitalist Economies and a Better Way to Think About Credit Risk
Instability in capitalist economies comes from the quest for profit. And that has implications for credit ratings that are often ignored.
Read more...Category Archives: Risk and risk management
Brexit Risk and Nigel Farage: We Know Where His Mouth is (“England”), But is His Money Offshore?
Is Nigel Farage’s wealth offshore? Is that why he’s so calm about Brexit?
Read more...Need a Loan in China? Hand Over a Nude Photo
Lender demands in China as a sign of credit stress.
Read more...Cyber Risk as Systemic Risk
The threat to the financial system posed by cyber risk is often claimed to be systemic. This column argues against this, pointing out that almost all cyber risk is microprudential. For a cyber attack to lead to a systemic crisis, it would need to be timed impeccably to coincide with other non-cyber events that undermine confidence in the financial system and the authorities. The only actors with enough resources to affect such an event are large sovereign states, and they could likely create the required uncertainty through simpler, financial means.
Read more...Investment Case Study: Some Oxford Dons Take Skeptical Look at Yale and Canadian Investment Fads, Um, Models
Believe it or not, a case study on major approaches to investing that is both informative and fun to read.
Read more...CalPERS Uses Unqualified “Expert” to Validate Its London-Whale-Style Deficient Risk Management
CalPERS tells its board that the very same lax risk management oversight structure that led to the London Whale fiasco is “best practice” when it clearly isn’t.
Read more...The New Abnormal: “Disequilibrium Flirting with Deflationary Depression”
The New Abnormal: a period of profound disequilibrium as the aftershocks of the Crisis collide with and complicate structural changes.
Read more...#panamapapers: Questioning the Picture Painted in the WSJ’s Interview With Jürgen Mossack
A sceptical look at Jürgen Mossack’s WSJ interview
Read more...A Modest Proposal: Securitizing Loans for Large Health Care Expenses
Health care loans are the equivalent of mortgages for large health care expenses. What could go wrong?
Read more...New Zealand’s FMA, the Breder Suasso Conundrum, Mossack Fonseca, and #panamapapers
A quick look at Breder Suasso, a New Zealand FSP with historic links to disreputable Panamanian law firm Mossack Fonseca
Read more...New Zealand Foreign Trusts and the Unaoil Scandal: More Chickens Coming Home to Roost, and They’re Big
First a political fracas in Malta, now a giant international bribery scandal: New Zealand Foreign Trusts cover themselves in more glory
Read more...Negative Interest Rates – Are There Any Positives?
The more you look at negative interest rates, the harder it is to find anything to like.
Read more...Mossack Fonseca: The New Zealand Connection
A little sniff at the New Zealand operations of notorious Panamanian law firm Mossack Fonseca
Read more...Banks Once Burned, Now Twice Shy About Taking on More Takeover-Deal-Related Junk Debt
Banks have gotten a painful reminder that originating risky assets like junk bonds and loans can leave them holding the bag.
Read more...New Zealand Foreign Trusts: Chickens Coming Home to Roost
After many warnings were ignored, New Zealand Foreign Trusts are now damaging NZ’s reputation overseas
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