fed speech, 2005-10-18
Among the challenges we see today, even at the most sophisticated institutions, are the following: - bringing more integration to the assessment of market and credit risk and the interactions between them, - capturing, measuring and aggregating credit exposures stemming from activities across all of a firm's business lines, - assessing the value of positions in portfolios of more complex and less liquid products, - capturing the potential implications on market liquidity and price movements of the unwinding of common positions across market participants, and - assessing the implications of the exit of a major counterparty, particularly in the more concentrated segments of the market, and the limitations imposed by the size of the institution itself in responding to adverse market conditions.
Sentiment: neutral
Topic: mp_interest_rate