It is tempting to think of financial models like the scaled-down replicas of aeroplanes used in wind-tunnel testing, providing an accurate simulation of how a firm’s balance sheet will behave when buffeted by the headwinds of market turmoil. In reality, though, they are more like Impressionist paintings, offering a nebulous picture of what could happen, rather than what will happen.
While they can only ever provide a pale reflection of the probable, the use of models among insurance companies ha
The week on Risk.net, October 6-12, 2017Receive this by email
- Quantile, TriOptima face off in cleared swaps compression battle
- Leaked EU doc could shield legacy swaps from clearing grab
- ABS set for revival under US Treasury’s liquidity buffer plans
- SGX, HKEX expect to be among first wave of Mifid II equivalence
- Industry hails potential US relaxation of margin timing rules