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US Credit Rating Downgrade: Commodities price impact: Using gold to price oil

If we assume that when it comes to relative value Gold is doing a better job of predicting what something is really worth, how does that translate into cost? On average a barrel of oil costs about 0.0668 ounce of Gold. This puts fair value of a barrel of oil at about 114 using the average, at about 85 using the low over the last 3 years (including the dip last week) and at about 135 using the high of .08 over the same period.

Stop loss limits review triggers - volatility, breaches, capital, profitability, liquidity

Liquidity Risk Management – A framework for estimating liquidity risk capital for a bank

Capital estimation for Liquidity Risk Management is a difficult exercise. It comes up as part of the internal liquidity risk management process as well as the internal capital adequacy assessment process (ICAAP). This post and the liquidity risk management series that follows suggests a framework for ongoing discussion based on the work done by our team with a number of regional banking customers