Remove Benchmarking Remove Credit Risk Remove Currencies Remove Leverage
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Reading Tea Leaves – And Ripple Effects – Of Corporate Default Risk  

PYMNTS

The scenario comes to mind in the wake of news that default probability risk is increasing among companies owned by private equity firms. The Wall Street Journal reports that such risk is 2.5 That estimation comes from analytics firm Credit Benchmark. But eventually, leverage catches up with almost everyone.

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Transcript: Rick Rieder

Barry Ritholtz

You know, people are comfortable, leverage builds. And because remember, Lehman had the Lehman Agg and that was the benchmark. And you know, it’s really been extraordinary around if you can analyze your risk, anything about optimizing your return, you could build, you know, how do you look at correlations, diversification.

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Transcript: Kristen Bitterly Michell

Barry Ritholtz

And so, with this gave me exposure to everything from investment banking to retail, looking at like checking account campaigns, like how do you get more assets in the door to credit risk. RITHOLTZ: … which people tend to ignore when things are pretty — let’s say, in 2007, a lot of people aren’t thinking about counterparty risk.