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Commodity Risk: 5 Lies Corporates Tell Themselves

As volatility roils the commodity markets, corporations face difficult decisions in managing financial risk. For many, achieving long-term success requires dispelling misconceptions and facing...

July 1, 2022 | By Bryant Lee

Market

In Brazil, a Domestic Election Under Global Pressures

Latin America’s distance from the Russia-Ukraine war blunts some of the economic spillovers buffeting those closer to the conflict. But for Brazil, with the approach of national elections in October,...

June 3, 2022 | By Dawn Kissi

Market

Crypto Billionaire Bankman-Fried Ignites Futures Clearing Debate

For better or worse – and understandably in view of its most recent downturn – the cryptocurrency market attracts outsize public, media and, increasingly, regulatory attention. Although relatively...

May 27, 2022 | By Jeffrey Kutler

Market

SEC Proposals Raise CLO Market Concerns

The Securities and Exchange Commission has picked up its pace of proposed rulemaking – “too much, too quickly,” Securities Industry and Financial Markets Association chief Kenneth Bentsen has...

May 20, 2022 | By John Hintze

Market

War Exacerbates Emerging-Market Headwinds

Emerging market economies, hit disproportionately hard by the pandemic and related shocks, are yet again reeling from inflation and other economic effects of the Russia-Ukraine war. That is the...

April 29, 2022 | By Dawn Kissi

Market

Cyber Is Coming to Insurance-Linked Securities

The insurance-linked securities (ILS) market reached record volume last year and is primed to grow dramatically as insurers look to the capital markets to help cover ballooning cyber-related risks....

April 22, 2022 | By John Hintze

Market

New Drivers for Credit Risk: Increasing Interest Rates and Rising Geopolitical Risk

Credit risk and interest rate risk are often perceived by banks as worlds apart, thanks in part to the well-established risk taxonomy of the Basel Committee on Banking Supervision (BCBS). However, in...

April 8, 2022 | By Marco Folpmers

Market

Ukraine Repercussions Include Heightened Geopolitical Risk, Widespread Uncertainty

Across financial markets, the confrontation over Ukraine generated that least welcome of investment factors: uncertainty. Volatility ran high as investors pondered various military-intervention...

February 25, 2022 | By Dawn Kissi

Market

Applying Exchanges’ Risk Measures Broadly Across Markets Will Support Post-Pandemic Rebound

Over the past decade, the securities trading industry has responded to economic and operational crises with a series of circuit breakers, limits and risk controls, implemented one at a time. The...

January 21, 2022 | By Michele Hillery

Market

After Evergrande, the China Market Moves On

From real estate debt to regulatory crackdowns to geopolitical tensions, China gives investors, risk managers and corporate strategists more than a few reasons to prepare for adverse outcomes or...

January 14, 2022 | By Dawn Kissi

Market

To Attract Investment, Mexico Shrugs Off Governance Troubles

With a muted long-term growth outlook, and state-owned petroleum company Pemex negatively impacting public finances, Mexico could be facing a downgrade, with governance indicators also playing a...

November 19, 2021 | By Dawn Kissi

Market

The Building Blocks of Risk Strategy

Crises always reveal the true value of an adaptable, integrated approach to risk management. COVID-19 is no exception. Indeed, throughout the current pandemic, financial services firms have realized...

November 12, 2021 | By Brenda Boultwood

Market

Lending and Libor: The Consumer Pain Point

In the U.S., consumers and borrowers are standing at the precipice of the biggest upheaval in the world of interest rates since the 2008 financial crisis. Surprisingly, they are largely unaware that...

October 29, 2021 | By Jonathan Rosen

Market

In Corporate Finance, There Is a Premium on Being Proactive

For corporate finance, a lesson from the pandemic period is to be more proactive in managing financial risk and thereby accelerate efforts to deal with longstanding challenges. After COVID-19 struck...

October 8, 2021 | By John Hintze

Market

In Lebanon, Tunisia and Other Hotspots, the Instability Is Local

From Lebanon to Tunisia, from Ethiopia to Syria to Myanmar, political and humanitarian crises are flaring up worldwide, destabilizing economies amid a backdrop of social unrest and vaccination...

October 1, 2021 | By Dawn Kissi

Market

How to Develop a Top Risk Approach

The board of directors always prefer a simple, concise summary of the organization's top risks over a voluminous risk report. Firms often use a risk heatmap to scrutinize the completeness and...

September 17, 2021 | By Brenda Boultwood

Market

With Formal Committee Support, Transition to SOFR in 'Homestretch'

The Alternative Reference Rates Committee (ARRC) has recommended a term version of the Secured Overnight Financing Rate (SOFR) for business loans and related transactions, after indicating previously...

August 6, 2021 | By John Hintze

Market

Emerging Market Conditions - and Debts - Cloud the Global Growth Outlook

Forecasting 6% global growth for this year, the International Monetary Fund says, “We are seeing in some countries a recovery like no other, propelled by a combination of strong fiscal and monetary...

July 23, 2021 | By Dawn Kissi

Market

Treasury Market Upheavals Bring Calls for Operational Fixes

Post mortems on the COVID-19 crisis, from a financial market perspective, home in on emergency interventions by the Federal Reserve and ensuing dysfunctions in U.S. Treasuries. There is no disputing...

July 23, 2021 | By John Hintze

Market

Term-Rate Turnabout: Multiple Choices Beyond Libor

Early this year, market participants were worried about the lack of a Libor-replacement rate with a term structure similar to Libor's. Now it is a case of which one to choose. Although the Federal...

June 4, 2021 | By John Hintze

Market

U.S. Regulators Lag on FRTB as Europe Deadline Approaches

Rules stemming from the Basel Committee on Banking Supervision's Fundamental Review of the Trading Book (FRTB) market risk guidelines, initiated more than a decade ago, become effective in Europe...

May 14, 2021 | By John Hintze

Market

High-Frequency Trading: A Sociologist's Take

For Donald MacKenzie, individuals' interactions with machines, mathematics and technology in competitive settings - and the risks that may ensue - are subjects of great fascination, whether in...

May 7, 2021 | By Katherine Heires

Market

Structural Shifts Prompt Rethinking of Securities Lending Strategies

The ongoing bull market in equities has played a major role in depressing securities-finance revenue in recent years. Reddit “meme stock” traders fueled a temporary bump up in revenue early this...

May 7, 2021 | By John Hintze

Market

For CLOs, a Bumpy Path Away from Libor

Collateralized loan obligations (CLOs) pool highly complex and bespoke syndicated loans into securities sold to investors with varying priorities. In the transition away from Libor, the predominant...

April 1, 2021 | By John Hintze

Market

New Momentum for Ameribor Benchmark Follows Citi's Market-Making Move

Citi's decision to join the American Financial Exchange (AFX) and make markets in Ameribor-based derivatives brought the upstart exchange long-sought affirmation from a major Wall Street player. More...

February 12, 2021 | By John Hintze

Market

Will a Financial Transaction Tax Put Markets at Risk?

Legislative proposals for financial transaction taxes have been surfacing with increasing regularity for at least a decade. The FTT idea – to impose small levies on trades of stocks and other...

August 21, 2020 | By Jeffrey Kutler

Market

The Deflation Risk of Pandemic-Driven Stimulus Plans

Across the globe, in response to unprecedented economic disruptions caused by COVID-19, central banks have implemented unconventional monetary policies. In the U.S., for example, the Federal Reserve...

August 7, 2020 | By Tianyang Wang

Market

World Economic Forum to Asset Managers: How to Mitigate 6 Systemic Risks

The World Economic Forum (WEF) and its research partners believe that asset managers are in a good position to help mitigate some of the world's most challenging risks. In late May, the Forum and...

June 26, 2020 | By Katherine Heires

Market

Stability Amid the Storm: Can Another Full-Blown Financial Crisis Be Avoided?

In mid-May, the Federal Reserve Board released its Financial Stability Report, representing its “current assessment of the resilience of the U.S. financial system.” Needless to say, the Fed is...

June 5, 2020 | By Katherine Heires

Market

Structured Finance Holds Up Under Pressure

The uncertainties of when and how successfully localities restore economic activity extends to structured finance transactions - and there are various scenarios. A national downturn would have to be...

May 15, 2020 | By John Hintze

Market

Islamic Finance: More Mainstream, More Exposed

Islamic financial services has tallied a decade of positive growth, reaching $2.19 trillion in global assets as of 2018, according to the most recent Islamic Financial Services Board (IFSB) data....

April 24, 2020 | By Dawn Kissi

Market

COVID-19 Calls for New Risk Measures

COVID-19 is different from all previous crises. It feels like a combination of a much broader version of 9/11, when all flights were canceled, and a much faster version of the 2008 financial...

April 3, 2020 | By Alla Gil

Market

Coronavirus Spread Will Test Scenario Assumptions

The coronavirus outbreak sent equity markets into a tailspin and macroeconomic forecasting into overdrive. Publicly discussed scenarios ranged from cautiously benign to alarmingly pessimistic, as...

March 6, 2020 | By Ted Knutson and Jeffrey Kutler

Market

The Libor Dilemma: How to Manage and Mitigate the Risks of a Tough Transition

The pending global shift from the Libor interest rate benchmark to an alternative reference rate is rife with legal, accounting, governance and technology complexities, imposing a heavy burden on...

February 21, 2020 | By Alla Gil

Market

EquiLend Brings Automated Trading to Total Return Swaps

EquiLend Holdings, which was formed in 2001 to operate an electronic trading platform for securities finance, has expanded into the equity total return swaps (TRS) market. The New York-based company,...

January 24, 2020 | By John Hintze

Market

Libor Transition Expected to Accelerate in 2020

The move away from Libor to an alternative interest-rate benchmark for debt and derivatives pricing is proceeding, although most of the action is around infrastructure to support the transition,...

January 24, 2020 | By John Hintze

Market

CFTC Forms Two Market Risk Subcommittees

The Commodity Futures Trading Commission said it has formed two new subcommittees of its Market Risk Advisory Committee (MRAC): Central Counterparty Risk and Governance; and Market Structure. The...

December 6, 2019 | By Jeffrey Kutler

Market

Ameribor Benchmark Is on the Blockchain

American Financial Exchange (AFX), a self-regulated marketplace for bank-to-bank transactions and home of the American Interbank Offered Rate (Ameribor) benchmark, has launched on the blockchain. The...

November 22, 2019 | By Jeffrey Kutler

Market

Litterman Named Chairman of CFTC Panel on Climate Risk

The Commodity Futures Trading Commission said that renowned financial risk manager Robert Litterman will chair the newly impaneled Climate-Related Market Risk Subcommittee of the CFTC's Market Risk...

November 19, 2019 | By Jeffrey Kutler

Market

Libor Alternative Action: SOFR Makes Progress; IBA Adds Credit Spread

“The clock is ticking” has become a regular refrain of regulators intent on keeping financial market participants on course to replace the London interbank offered rate (Libor) by the end of 2021....

October 11, 2019 | By John Hintze

Market

Shadow Banking: Monitoring Vulnerabilities and Strengthening Policy Tools

“Shadow banking” is a catchy phrase that sounds sinister, sly, slick or shady. Yet that phrase obscures an important fact: Although some forms of shadow banking can be risky, complex or even toxic,...

June 21, 2019 | By Fabio M. Natalucci

Market

Vulnerabilities Intensify in the Global Financial System

In the global economy, there are some worrisome trends that could put economic growth at risk. Financial vulnerabilities have been intensifying worldwide as financial conditions remain relatively...

May 3, 2019 | By Tobias Adrian and Fabio Natalucci

Market

A U.S. Libor Replacement with Traction

The big‐bank replacement for the London Interbank Offered Rate (Libor), known as SOFR (Secured Overnight Financing Rate), is working through some growing pains and development issues, including the...

April 26, 2019 | By John Hintze

Market

Deutsche Börse to Acquire Risk Analytics Provider Axioma

Deutsche BÖrse has agreed to acquire Axioma, a New York-based company noted for its cloud-driven, multi-asset-class portfolio and risk management technology and customer base of more than 400,...

April 12, 2019 | By Jeffrey Kutler

Market

Brazil's Euphoric Right Turn

The market euphoria in Brazil since the election last fall of right-wing populist President Jair Bolsonaro does not mask the fundamentals of economic weakness and the investment risks that accompany...

February 15, 2019 | By Dawn Kissi

Market

Term Versions of Libor-Replacement Rates Pick Up Steam

Recent input from market participants about their preferred way to transition to a Libor-benchmark replacement surfaced concerns about several interconnected risks. Necessary to address them will be...

January 18, 2019 | By John Hintze

Market

Amid Uncertainty, Deutsche Bank Strategist Sees a Sunny 2019

Consumer discretionary spending will keep the U.S. from falling into recession, according to Deepak Puri, chief investment officer and managing director of Deutsche Bank Americas Wealth Management....

January 18, 2019 | By Juliette Fairley

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