Popular Articles
Risk
04.11.2026
Counterparty Risk: Collateral Haircuts Under Stress
Collateral haircuts are margin buffers used in derivatives, repo, and securities lending to cover losses if a counterparty fails. This article explains how haircuts behave during stress, why model assumptions break, and how collateral quality, liquidity, and settlement timing change outcomes. It is for informed readers who want to evaluate risk controls in trading and lending arrangements. You will learn what to check in margin terms, how to interpret haircut changes, and which practical steps reduce counterparty risk.
Risk
28.10.2026
Correlation Stress: Portfolio Risk at 0.0 vs 0.8
Correlation Stress compares how portfolio risk changes when asset returns move together. This article explains what “correlation stress” means, why correlation values like 0.0 and 0.8 matter, and where the math can mislead. It is for investors and risk-minded readers who want practical interpretation, not jargon. You will learn how to read risk outputs, test assumptions, and avoid common modeling traps when correlation estimates drift.
Risk
24.10.2026
Active Risk: Tracking Error vs Information Ratio
Active risk, tracking error, and information ratio describe how a portfolio’s returns differ from its benchmark and how consistently that difference is achieved. This article explains what tracking error measures, what the information ratio adds, and why confusing the two can lead to poor interpretation of performance. You’ll learn practical ways to read these metrics, common pitfalls, and how to compare strategies using a checklist and examples.
Risk
20.10.2026
Expected Shortfall: Losses Beyond the VaR Threshold
Expected Shortfall (ES) measures the average loss when losses exceed a Value at Risk (VaR) cutoff. This article explains how ES differs from VaR, why tail losses matter for risk management, and where the math meets real-world data limits. It is for readers evaluating risk reports, model outputs, or investment risk discussions. You will learn practical interpretation, common pitfalls, and how to compare ES and VaR using clear checklists and examples.
Risk
14.10.2026
T+1 Settlement: Liquidity Risk for Active Investors
T+1 settlement shortens the time between trade execution and cash/asset delivery. This article explains how the change affects active investors who trade frequently, manage margin, and rely on intraday liquidity. You’ll learn what liquidity risk means under T+1, which dependencies drive it (clearing, margining, funding, and settlement fails), and how to stress-test your workflow. Practical checklists and anonymized scenarios show what to monitor before and after cutover.
Risk
08.10.2026
Counterparty Risk: Collateral vs Unsecured Exposure
Counterparty risk describes losses when the other party in a financial contract fails to perform. This article explains how collateral changes exposure compared with unsecured claims, using plain examples from derivatives, securities lending, and settlement systems. It’s for readers who want to evaluate risk in contracts, understand margin and haircuts, and recognize common misunderstandings. You’ll learn practical checks, key terms, and a decision checklist to compare collateralized and unsecured exposures.
Risk
02.10.2026
Leverage Risk: Portfolio Impact at 1.0x vs 1.5x
This article explains leverage risk in investment portfolios by comparing 1.0x and 1.5x exposure. It is for readers who want to understand how small market moves translate into larger gains or losses, how margin and financing costs affect outcomes, and what checks reduce the chance of forced selling. You’ll learn the mechanics, common misreads, practical decision steps, and realistic examples that show how leverage changes portfolio behavior under stress.
Risk
26.09.2026
Volatility Drag: Why 20% Vol Can Cut Returns
Volatility drag is the way investment returns can fall when prices swing a lot, even if the long-run average looks fine. This article explains how a 20% volatility assumption can quietly reduce compounded outcomes, why “average return” can mislead, and what to check in fund factsheets and risk metrics. Readers learn practical ways to stress-test a plan, compare strategies, and avoid common measurement mistakes.
Risk
20.09.2026
Tail Risk: Portfolio Loss at 95% vs 99% VaR
This article explains tail risk using Value at Risk (VaR) levels at 95% and 99%, aimed at investors and risk-minded readers. It clarifies what VaR does and does not measure, why the gap between 95% and 99% can be much larger than expected, and how portfolio construction, correlations, and liquidity shape loss outcomes. You will learn how to interpret VaR, stress-test assumptions, and avoid common reporting traps.
Risk
14.09.2026
Tracking Error: Active Risk in ETF Portfolios
Tracking error measures how much an ETF’s returns diverge from its benchmark. This matters for investors who expect “index-like” behavior, for people comparing active vs. passive funds, and for anyone using ETFs for risk budgeting. The article explains what tracking error means, why it rises, how it differs from active share and tracking difference, and how to check it using fund reports. Readers learn practical steps, common pitfalls, and realistic scenarios.