I guess I am a glutton for punishment, but I am going to take the opposite side of the argument from what most have been saying of late regarding the rating agencies. Those who want historical context can read my earlier...
Read More1) You hear me talk about this more than most, but liquidity risk needs more emphasis. This is true whether you are a retail or institutional investor. As the old saying goes, “Only invest what you can...
Read MoreWhen I wrote What Stories Aren’t Being Told?, I did not expect a big response. But I got 53 responses, more than double the responses of my next-most-responded-to article. Many bloggers linked to it, and...
Read MoreI have had a number of posts on liquidity over the past few years, in an attempt to explain an ill-understood phenomenon. Here is a sampling: What is Liquidity? (one of my first posts) What is Liquidity? (Part II) The Five...
Read MoreI am a risk manager first, and a profit maker second. I tend not to trust solutions that are “magic bullets” unless there is some barrier to entry — why can you do it, and few others can? Knowledge...
Read MoreOkay, I am going out on a limb here, so please understand that what I am saying is a bit of an experiment. When quantitative easing was originally done in Japan, it was after: a credit-fueled expansion that pushed the...
Read MoreIt’s been two years since my last major post on this issue. A lot has happened since then, much of which points out the truth of what I said. If governments could be powerful enough to insure the security of...
Read MoreWhat Stories Aren’t Being Told? was my most commented piece since the inception of this blog, and I thank readers. But Dr. Jeff pointed out in the comments, the tone was on of extreme negativity. What? Is...
Read More1) Credit cycles tend to persist for more than just one year. That is one reason why I am skeptical of the run in the high yield corporate bond market at present. Sharp short moves are very unusual. To use...
Read MoreI have never been a fan of VAR (Value at Risk), but I recognize that mathematical techniques are only as good as those that use them. Questions arise with any quantitative risk technology: What’s my time...
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