The Loss Event Manager

I am having an interview for a role as the risk monitoring and loss database manager. This is under the operational risk unit of a bank. I have worked in operations and intend picking up this role under the risk management unit.

Please how can you be of help in my preparation?

Disturbing News - ECB and Congress broken

This week has been particularly disturbing on the news front. To sum it up, my faith in politicians and fat cat executives who run our financial system has been pretty shaken.

There are three unique pieces of news that I have stumbled across which are just simply appalling to read. Certainly, any hope for a quick resolution to the world's financial problems isn't going to come anytime soon and the entire economy is up for grabs as the dark clouds of recession hang over Europe.

So let's take a look at these three items:

Floating Rate Funds attractive, you decide

In a market of prevailing low interest rates investors returns are humble, often way below what they have enjoyed in the heyday and without any doubt, the yields experienced during the lead up to the 2008 credit crisis. 

It is an economic conundrum or balancing act where on one side of the coin pun intended, central banks lower interest rates to stimulate borrowing but on the other side, that doesn't fair well with investors that are looking for high yields from the risks they take. When interest rates drop at the source or risk free rate, they drop across the board.

One irony is that of Asset Backed Securities. In effect what brought the credit crisis on is also assisting investors escape its deflationary grips and floating rate funds are becoming fashionable, well they were quite exciting before the August market rout.

Who holds your securities

There are two cases that are on-going at present which are interesting to follow.  The first is the MF global lost margin collateral and the second is the Madoff Victims vs JP Morgan debacle. What both these cases have in common is a lack of understanding from investors on where their assets actually reside.

Too Big to Fail

Whether the recent sovereign debt issues are an instigating factor or not, the too big to fail agenda is back on the table for debate among global regulators.