As a new fund, the client was looking for a technology partner who understood the specific challenges they are faced with and can scale as the fund grows. Given the need for strong risk control capabilities the client was looking for a solution that would allow their traders and portfolio managers to analyse risk at deal and aggregated portfolio level. The risk function required the ability to generate sensitivities, stress tests and scenario analysis for the portfolio, along with the required management and investor reports.
Piraeus has played a pivotal role in supporting the recovery of the Greek economy and restoring trust in Greek banks. To keep pace with market conditions and ensure compliance with stringent regulation, Piraeus recognised the need to adapt their risk analytics infrastructure to enhance interoperability with other core systems and align front, middle and back office functions. Senior management also wanted to improve risk control, reduce operational inefficiencies and optimise total cost of risk by streamlining processes, IT and operating models.
It has been reported in several industry publications (e.g., CreditFlux, Reuters, Derivatives Week Online) that the CDS market is likely to switch to a fixed coupon basis with upfront points. This change will lead to some fundamental changes in the risk profiles of these contracts, and in particular will affect how they can be used in hedging spread and default risk. This Learning Curve article will explore some of the most basic changes that participants in the credit markets will need to keep in mind. Read More