Three types of stress test If you run a Google search for “stress testing” you will find over 900m results and one near the top is from...

Should we target net interest income? For many banks and building societies Net Interest Income (NII) is a substantial part of...

Legacy business - something you wish you didn't have The balance sheets of building societies often contain legacy assets. That’s...

When two parties separate there’s often a settlement involved. Normally this is an up-front payment and may include ongoing maintenance....

Drive in London and you can pay £21.50 for the privilege. That's the effect of the new T-charge. The mayor tells us it will cost...

In 2008 Malcolm Gladwell talked about 10,000 hours of practice in the sense that the more you do the better you become. This has a...

During the summer regulators have been busy. Latest musings highlight the risks that threaten. A perennial theme seems to be the housing...

How much should I invest in stocks? How much should we hold in liquidity? These similar questions arise from different sources. One...

To be an equity investor (active or passive) you must be an optimist. You believe that the future will be better and with this income and...

According the FT on 27/4/17 local councils are borrowing from the Treasury at about 2.5% to fund real estate yielding around 8%. The net...

Reinvestment of interest is the cornerstone of successful long term investment. Einstein recognised compounding as the eighth wonder of...

Last week I was discussing liquidity and market risk with two different banks. On reflection, it’s apparent that the way we set risk...

In this low rate environment pension liabilities have ballooned and companies have opted to close final salary schemes. Many private...

US bank stocks are indicating that the new administration may scale back the regulatory onslaught that followed 2008. Could this make...

What do the following two examples have in common? Example 1: If a 25-year-old saves £1,000 for retirement in 40 years’ time how much...

If you have tried any of the following you could be in for a nasty surprise. Things are not as smooth as advertised. Opening an account...

Just before the big vote few people expected the UK to opt out of the EU. If you believe that markets are, by and large efficient, the...

Traders know that being long means when the market goes up or sideways they win. This forms the basis for carry trades. That’s winning...

Back in 1997 Gordon Brown announced that the Bank of England would have freedom to control monetary policy. It was heralded as a move...

Many banks completely avoid foreign exchange risk. They borrow and lend in the same currency. Any customer trades are immediately offset....