Is the Prospect of a Biden Win Powering the Yuan?
People have been asking (a lot) for election scenarios. What will markets do if Biden wins? What will they do if Trump wins? And I have covered those topics here and here. As time ticks on and the situation changes (Supreme Court vacancy anyone?), prognostications may become further removed from actual results.
Contested Elections
We have had several clients ask for scenarios that pertain to the upcoming US presidential elections. Clearly there is a lot of uncertainty around an election that is more divisive than any in memory. While direct comparisons to other events in US history are hard to come by, we have certainly seen our fair share of contentious presidential elections.
How’s VaR working out?
If there is one theme that underpins our writing on risk, it is that stress testing and scenario analysis are far superior to value at risk (VaR) measures. It is...Read More
Watch Video to Learn How Portfolio Stress Testing Works
Stress testing is front page news. The Fed stress tests banks, large institutions stress test their portfolios and now financial advisors are using stress testing for their clients.
3 Advantages of Stress Testing vs. Traditional Risk Measures
Portfolio Stress Testing is a useful method for determining how a portfolio will fare during periods of financial crises. The financial crises scenarios are modeled and may include historical events (e.g. 2008-like scenario) and events that we have not observed yet.
Federal Reserve Stress Scenarios Modeled In Riskostat
As you may know, the Federal Reserve recently released their stress scenarios: Base, Severe and Adverse. While the Fed may not explicitly regulate you, the role this organization plays in...Read More