Finance
A Secret for Success: Understanding Risk Management
If the state of risk analysis could stand some improvement, what does that say about risk management? The point is, flawed risk analysis leads to poor risk management: garbage in,
Europe’s leaders far from banking union
On September 12th, the European Parliament adopted legislation, which will allow the European Central Bank (ECB) to take on new bank supervision tasks as part of the single supervisory mechanism.
Prediction Markets may Revolutionise Business Forecasting
Prediction markets are a type of financial market (also known as information markets or event futures), in which participants trade in contracts whose payoffs depend on unknown future events. Of course,
Cyprus Bailout Process Moves Forward Despite Risks
Monitors from the International Monetary Fund (IMF), the European Commission and the European Central Bank, collectively called the troika, visited Cyprus from July 17 until July 31 to assess the
Financial service commission ban limits advisory market
Is commission equal to fraud? In Australia, the Netherlands and UK the answer is yes, and more countries look likely to join their ranks. Inherent to the commission system was
The Eurozone Isn’t Quite Bailed-out Yet
According to several recent statistics, the Eurozone’s future is looking brighter than it has in a long time. Not only has Eurozone unemployment fallen for the first time in two
China to Audit Local Governments and Reduce Financial Risk
On July 28th, China’s National Audit Office (NAO) announced that it will conduct a nationwide audit of government debt as Beijing tries to ascertain the financial risks to China’s continued
10 Facts about the Detroit Chapter 9 Bankruptcy
“They (outsiders) think Detroit is a dump. No respect. It’s a dump now. Detroit can’t even handle its own business? That’s sad.” — Detroit resident Everett Cottrell, 52. 1. The largest
China’s Tug of War Between Central and Commercial Banks
Chinese banks experienced an unexpected credit crunch in the past weeks. On June 20, the Shanghai Interbank Offered Rate (SHIBOR) and overnight repo rate reached, at certain points, 25% and 30%
Convexity Hedging Increases Risk in US Markets
If you have been watching the yield curve for U.S. treasuries, you will have noticed a rise in interest rates pretty much across the board. As Treasury yields go north,
