When I wrote the Devil's Derivatives I looked at the risk modelling behind the ratings of CDOs, bank trading and credit portfolios. Through a combination of bad incentives and leverage, these models performed very badly and contributed to the financial meltdown of 2007-8. Lurking in the background of my analysis was traditional portfolio modelling as…
Continue reading..




Japan's financial markets are undergoing profound ...
Every quarter, MSCI's index rebalancing announceme...
Two new visualisations show how AI transformed the...