c189a-r2

Financial Stability Board – Moving Away From CRA Ratings

It its may 12-th, 2014 final PeerĀ  Review Report (download) the Financial Stability Board speaks of “reducing Reliance on CRA Ratings”. According to the FSB: “The key challenge lies in developing alternative standards of creditworthiness and processes so that CRA ratings are not the sole input to credit risk assessment.” As we have repeatedly pointed…

Financial Chart, Markets Go Up

Low-Complexity Versus High-ComplexityPortfolios

Complexity is a fundamental physical characteristic of every system that may be found in Nature. Its importance is similar to that of energy. The first comprehensive measure of complexity for generic systems has been developed in 2003. The functionality of a given system is proportional to its complexity. More complex systems are able to perform…