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Bank loan credit risk pooling: risk diversification versus the moral hazard problem – Journal of Credit Risk Skip to main content End of drawer navigation content Banks can reduce their exposure to credit risk with credit risk pooling. Credit risk pooling results in a trade-off between risk diversification and moral hazard. A nonlinear risk sharing…
The Federal Housing Finance Agency is proposing a change that would remove certain criteria for counterparty suspension while maintaining a focus on triggers related to credit, market and operational concerns. Processing Content The proposal seeks to remove “reputational harm” from as a trigger because it “potentially diverts agency resources from more salient risks without adding…
Fixed income ETFs now command trillions in assets and trade with equity-like immediacy. These wrappers let investors move in and out of diversified bond exposure in a single click, at a visible price, throughout the day. Yet beneath many of these modern products lies infrastructure designed for a different market era. Index methodologies conceived in…
IBM’s stock plunges after a preliminary release of profit and revenue that were well below expectations.
Inflation affects everything from grocery bills to rent, making the Consumer Price Index one of the most closely watched economic indicators. What does inflation mean at the micro level — specifically to your household? The Bureau of Labor Statistics (BLS) divides all expenditures into eight categories and assigns a relative size to each. The pie chart below…
“Prior to 2022, that great repricing, we lived in a world where risk free rates were very low credit spreads were very high. In that world you want to invest in corporate bonds and, and not in government bonds,” Johnson says. “Fast forward to today we have the exact opposite. We have high risk-free rates…
Crude oil prices eased off session highs Tuesday, after President Donald Trump abandoned his demand for ships to pay a 20% protection fee to transit the Strait of Hormuz. U.S. West Texas Intermediate futures rose 1.82% to $79.56 per barrel. Brent futures, the international benchmark, were up 1.98% to $84.95. “Based on highly productive conversations…
After flatlining for much of the spring, credit availability last month fell to its lowest point since late 2025, as lenders pulled back on federal lending programs, according to the latest report from the Mortgage Bankers Association. Processing Content The trade group’s Mortgage Credit Availability Index dropped 2% to a reading of 105.8 in June,…
“Several regions are now seeing that uptick in momentum carry into summer, as buyers who held back earlier in the year re-enter the market. In many cases, what has kept consumers on the sidelines is not a lack of interest, but a lack of urgency.” Greater Toronto and Greater Vancouver bore the steepest annual declines…
(Bloomberg) — Warren Buffett is ramping up the pace of his annual donations of Berkshire Hathaway Inc. shares to charitable organizations run by his three children, putting him on track to completely dispose of his stake in the company over the next eight years. For the first time in two decades, Buffett decided to skip…