Challenges in Developing Capital Market Forecasts
Inappropriate capital market expectations could be devastating to portfolio performance. Several pitfalls could lead to false expectations and a less-than-optimal asset allocation. Regardless, the analyst is tasked with following a disciplined process and understanding potential challenges in developing capital market…
Common Behavioral Biases
Mnemonic Devices for Easy Recall Cognitive: The cognitive biases can be remembered with the following mnemonic device: Con-Con-Con-Rep-Hind + FAMA (think Fama and French). Emotional: The emotional biases can be remembered with the following mnemonic device: LESSOR (the owner of…
Operational Resilience: Impact Tolerance for Important Business Services
After completing this reading, you should be able to: Describe an impact tolerance; explain best practices and potential benefits for establishing the impact tolerance for a business service. Provide and explain criteria that firms should use to determine their important…
Principles for Operational Resilience
After completing this reading, you should be able to: Define and describe operational resilience and explain essential elements of operational resilience. Explain recommended principles that banks should follow to implement an effective operational resilience approach. In the years following the…
LIBOR Transition Case Studies for Navigating Conduct Risks
After completing this reading, you should be able to: Discuss regulatory expectations on LIBOR transition and how these expectations can help market participants in their management of conduct risk arising from the transition. Analyze the risks of LIBOR transition from…
Holistic Review of the March Market Turmoil
After completing this reading, you should be able to: Identify the key market developments that took place during the March 2020 COVID-19 market turmoil, conditions that were prevalent, and their effects on the financial markets and its participants. Describe how…
Covid-19 and Cyber Risk in the Financial Sector
After completing this reading, you should be able to: Define cyber risk and describe the elements that constitute it. Describe and compare causes of cyber risks and methods of enacting cyber attacks. Identify and explain the effect COVID-19 has had…
The Rise of Digital Money
After completing this reading, you should be able to: Describe and compare different attributes of means of payment. Describe the risks faced by the banking sector as e-money adoption increases and identify means of mitigating those risks. Explain reasons for…
Construction of Commodity Indexes
Commodity indexes have been created to portray the aggregate movement of commodity prices, investment vehicles, and investment approaches. It can be said that an asset class does not exist without at least one representative index. A commodity index plays the…
Commodity Swaps and Exposure to Commodities
A commodity swap is a legal contract involving the exchange of payments over several dates as determined by specified reference prices or indexes relating to commodities. Swaps are an alternative to futures when investors want to gain market exposure or…
