Progressive Credit Risk Management (CRM) transparently presents “own credit risk” to improve Asset-Backed transaction terms. When the CRM output is combined with insurance and funding methodologies, the financial benefits are striking. This is because banks rarely offer funding terms based on a due diligence process as thorough as the company themselves can execute daily.

Policymakers are keen for banks to lend. However, the banking model is broken. Many of the methodologies developed to intermediate credit are no longer cost effective or trusted by investors. Banks have responded by tightening credit issuance and de-leveraging. Alongside tougher Basel and domestic regulation, fee-earning has been hit. Banks are using general de-leveraging to cleanse their exposure to individuals, companies, other banks/ Financial Institutions and sovereigns who they believe will not only be unable or unwilling to repay debt but also unable to afford the cost of re-priced risk.

Think about it, as LTRO triggers on the leap day TODAY, why is the Central Bank being forced to do this against its will? The European monetary transmission mechanism doesn't have an IMF-Equivalent; so not only is the euro a political mishmash at the concept level its a stool (sic) on two legs at the practical institutional level. 

EU Money supply is at rock bottom, the pump at the 'heart' of European money supply is on life support.

That 'life support' is LTRO from the Central Bank, right? The Central Bank should be independent right? It shouldn't be pumping up the very thing that it is chartered to control, that is perversity by definition right?

THE SEQUENCE OF EVENTS ON ASYMPTOTIX

SECRETS LIES & SMOKE AND MIRRORS

INTRODUCTION

It's LTRO[1] that I’m talking about this time! LTRO the latest version of “economic life support those” crackpot surgeons in the Central Banks and Treasuries of Europe have come up with. What is the issue with it? As LTRO2 approaches, to on the leap day (29/2/2012) I present a number of theses about LTRO;

1.      LTRO is a workaround for Crowding Out

2.      LTRO is executed via a process called 'Round Tripping' or known as a ‘Carry Trade’

3.      Hedge Funds are intrinsic to the success of LTRO

4.      This makes governments dependent upon Hedge Funds (& not just the banks)

5.      LTRO creates a cash balloon which props up the equity market

6.      LTRO is a high-risk central bank strategy which could deflate at a stroke

7.      Ironically the very Hedge Funds and Asset Managers who are intrinsic to the success of LTRO are already freaked out by the high risk nature of the policy,

Modelling the Product Hierarchy is absoloutely crucial paticularly as technology advances in response to specifically the evolving compliance requirements in Financial Services. Therefore I have totally updated if not reconstructed this page in response to its volume of reads and the discussion it prompted. I intially developed this set of references 'to order' when working with IPL on 

An Information Framework for Financial Services Supervision

In my initial version of this blog / web-page; this is all I had to say;-

" Below a set of references, typically 'asymptotix-eclectic' which provide a roundup of captured and developed IP in this space to date. "make your Life easy"! There is no need to re-invent the wheel, IBM and SAP have been thinking about it for decades "

http://www.tdan.com/view-featured-columns/5400/ 

ftp://service.boulder.ibm.com/software/data/mdm/pdf/IFW_Process_GIM.pdf 

http://mike2.openmethodology.org/wiki/Guidelines_for_Using_the_FSLDM 

http://help.sap.com/saphelp_nw04/helpdata/en/f8/580f40763f1e07e10000000a1550b0/frameset.htm 

http://www.ibm.com/developerworks/websphere/library/techarticles/0909_nigam/0909_nigam.html

Below the (NEW, Feb 2012-version) reconstruction and update of asymptotix material on modelling the Product Hierarchy in Financial Services

“you can't have a product without a customer”

I recently got invited to go & talk to a SAS shop, a big one! This has not happened for a while (to me), well it wouldn't, would it? These (recent) days I (have been) a confirmed R man¹, maybe a wee bit of S+ but R; Revolution R² if possible but R; Hadoop^{3 4}yes, Netezza^{5 6}, yes & the deliriously beautiful SAP HANA⁷ but for me it has to be R, well that's the way I have attitudinised⁸ it here on asymptotix!!

Copula Dependence Structure on Stock Market with Application to Risk

Bayesian Methods in
Portfolio Credit Risk Management
A dissertation submitted to the
SWISS FEDERAL INSTITUTE OF TECHNOLOGY
ZURICH
for the degree of
Doctor of Sciences
presented by
JONATHAN ERIK PURVIS WENDIN
MSc. Engineering Physics KTH
born 17 April 1978
citizen of Sweden
accepted on the recommendation of
Prof. Dr. Alexander J. McNeil, examiner
Prof. Dr. Peter L. Bühlmann, co-examiner
Prof. Dr. Philipp J. Schönbucher, co-examiner

did the Greeks call the referendum because they had advanced intelligence that the #EFSF would not be able to raise a cent?

Understanding what a Central Bank is for / The Boundaries of European Financial Institutional Architecture

WHAT IS THE METRIC OF SUCCESS OF THE FINAL EUROZONE SUMMIT CONCLUSIONS ?

Crisis Mis-Management in Brussels!
They sure aint doin it by the book!

Asymptotix diagnosis of
european atrophy
& a solution proposal 

basically because bureaucrats can't hack it!

Our Manifesto for a an IT systems Solution Architecture Blueprint for the Risk Management requirement of today is provided in the following 14 references to asymptotix pages. 

asymptotix has the deep domain expertise and experience in the risk analytics and data management requirement and in the technology solutions described above contact us if this manifesto fits with your perspective on your current challenge.

Dutch Finance Minister Jan Kees de Jager - some references below

A Man worth listening to this week, run into the Emergency Council

 Consolidated References to the European Sovereign and Banking Crisis on asymptotix

 REVOLUTION ANALYTICS PARTNERS WITH CLOUDERA TO DELIVER COMPREHENSIVE NEW BIG ANALYTICS SOLUTION

REVOLUTION PRESS RELEASE
CLOUDERA REVOLUTION REFERENCE

Cloudera's Distribution including Apache Hadoop 

2 Blog Post Essays about the Economics of Scotland, right now; 1) banking (microeconomics) 2) post independence, the euro? (macroeconomics)

1. ..... what I really meant to say about Clydesdale and NBNK; its the macroeconomics stupid

2. Models of Small Open Economies; Lessons from Ireland for Scotland in the Euro.