19 min listen
No Free Lunch
ratings:
Length:
19 minutes
Released:
Mar 5, 2024
Format:
Podcast episode
Description
New asset classes like junk bonds and subprime mortgages initially promised high returns without too much risk. Many investors were surprised to find that the risk premium was insufficient to provide for actual losses when they came. Modelers need to adjust for incomplete investment cycles that include only the positive part (e.g., high spreads) but not the defaults and liquidity crises typical at the end of a cycle. By Max Rudolph
Released:
Mar 5, 2024
Format:
Podcast episode
Titles in the series (32)
Narrative Scenarios: The current real life scenario combines a pandemic, weather events, supply chain issues, inflation and a regional war all at the same time. Multi risk scenarios can provide major insights about a firm’s resilience that do not necessarily happen with ... by Crossing Thin Ice