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Yunpeng Zhao Contributes to U.S. Risk Management System Advancing Financial Stability and Regulatory Efficiency

Associated Press

3 days ago

Business
Associated Press

Yunpeng Zhao Contributes to U.S. Risk Management System Advancing Financial Stability and Regulatory Efficiency

Award-winning project led by Yunpeng Zhao modernizes credit alert and reporting infrastructure using real-time financial indicators New York, NY, United States, June 1, 2025 -- A groundbreaking project titled 'Risk Management Automation & Credit Alert System', developed between 2023 and 2024 in the U.S., has introduced a new paradigm in how financial institutions monitor and respond to emerging credit, interest rate, and liquidity risks. Designed and led by Yunpeng Zhao, the project developed a real-time dynamic credit risk alert system that integrates Credit Default Swap (CDS) spreads, bond yields, and other market indicators to anticipate potential risk exposures. The system offers an early warning mechanism that enhances counterparty and market risk sensitivity, significantly improving risk oversight and compliance response times. Beyond predictive credit analytics, the project automated the monitoring and reporting of key liquidity and interest rate risks, such as Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). These enhancements reduced reporting time by over 90% and lowered error rates by 98%, drastically improving both operational efficiency and regulatory transparency. Key Highlights: The project's innovation was recognized at the institutional level: Zhao's automated P&L forecasting solution for interest rate swaps (IRS) portfolios was selected as the 2024 'Outstanding Project of the Year' by the Bank of China's U.S. branch and progressed to the semifinals of the bank's global innovation competition. Building on the success of the initial system, Zhao has continued to lead efforts to enhance financial risk infrastructure across the U.S. banking sector. Building on the success of the initial system, Zhao has continued to lead advancements in financial risk technology. Since the second half of 2023, he has focused on enhancing predictive modeling and automation frameworks within risk management systems, applying real-time market data and machine learning tools to refine credit risk alerts and liquidity stress testing. His ongoing work contributes to greater transparency, operational agility, and regulatory responsiveness across financial institutions in the United States. The ongoing initiative leverages machine learning–driven predictive models and live market monitoring tools to enable early detection of systemic risks and improve coordination among banking institutions. By facilitating the exchange of risk-related data, the platform aims to address a long-standing gap in interbank visibility, particularly in moments of financial stress. This joint platform not only enhances depositor protection and systemic resilience but also sets a regulatory and technological precedent that may serve as a blueprint for other regional and mid-sized banks in the United States. Zhao's leadership in this ongoing project underscores his continued influence and expertise in the evolving landscape of financial risk management and regulatory innovation. To read more about Yunpeng Zhao's work, you can visit here. Contact Info: Name: Yunpeng Zhao Email: Send Email Organization: Yunpeng Zhao Website: Release ID: 89154256 In the event of any inaccuracies, problems, or queries arising from the content shared in this press release, we encourage you to notify us immediately at [email protected] (it is important to note that this email is the authorized channel for such matters, sending multiple emails to multiple addresses does not necessarily help expedite your request). Our diligent team will be readily available to respond and take swift action within 8 hours to rectify any identified issues or assist with removal requests. Ensuring the provision of high-quality and precise information is paramount to us.

He called the 2008 crisis, took a 14-year break and today warns us that a fresh financial storm is brewing

Yahoo

4 days ago

Business
Yahoo

He called the 2008 crisis, took a 14-year break and today warns us that a fresh financial storm is brewing

Steve Diggle's Artradis was once the biggest hedge fund in Asia. In the era of the global financial crisis and 'The Big Short,' his tail-risk fund — a portfolio of instruments that benefit from highly adverse market conditions — doubled its assets and returned $3 billion to investors in the process. Diggle's strategy of being long volatility and short credit risk, with a particular focus on the then-nascent credit-default-swap market, proved tremendously successful as markets malfunctioned and asset prices collapsed. The fundamentally bearish approach proved tremendously successful as investors realized how badly risk had been mispriced in a long bull market stretching back to 2002. 'The situation is extreme': I'm 65 and leaving my estate to only one grandchild. Can the others contest my will? My ex-wife said she should have been compensated for working part time during our marriage. Do I owe her? S&P 500 scores best May since 1990, but stocks end month with fresh tariff worries My daughter's boyfriend, a guest in my home, offered to powerwash part of my house — then demanded money Five emerging pillars of stock-market support that should keep investors from rushing the exits Diggle closed his long volatility fund in 2011 when unprecedented — and concerted —quantitative easing by the world's largest central banks depressed volatility to such an extent that the Artradis blueprint was no longer applicable. Things have moved on since 2011, though, and Diggle thinks the time is right to reinitiate his strategy. 'I see a lot of the same complacency and mispricing of risk we witnessed before the global financial crisis began to bubble in 2007,' he told MarketWatch in an interview. Diggle believes, he said, that the opportunity set that markets present to his new Vulpes AI Long/Short, or VAILS fund, launched on May 1, is very similar, which he'll be running from London rather than Artradis's former home of Singapore. There are some differences, however. In 2005–08 much of the hidden risk and excess leverage in the system was in banks and mortgages. Said Diggle: 'In 2025 financial markets are riddled with several fault lines, but now the bubble and the dangerous leverage is centered on private equity and private credit.' Here, again, the assets are misunderstood, poorly regulated, illiquid, mispriced or overvalued, and divestment is difficult without taking hits or marking down the value of other holdings. First, given the enormous budget deficits and huge debts incurred by a decade of QE and then the global pandemic, said Diggle, 'central banks are simply not in a position to implement similarly accommodative monetary policy again.' Second, there is inflation in the system once more. After 40 years of exporting deflation, China is no longer in that position, as globalization is reversing, and protectionist economics are destabilizing supply chains. Third, geopolitics present a clear and present threat to the security of asset markets. Fourth, the U.S. equity market, representing two-thirds of the world's total, is now — by most valuation metrics — expensive. Lastly, he added, ''the world's largest and most powerful economy is being piloted by a disruptive and, some may contend, reckless captain whose unpredictability and irrationality have generated wild market turbulence.' Of course, there are other tail-risk funds and strategies that benefit from bearish views. So what does he add? Straight off the bat, Diggle replies: 'I did it before.' He pointed out that he never gated Artradis during the global financial crisis. Unlike many funds during those periods of wild swings and illiquidity, Artradis always allowed clients to get their money out immediately. Investors back then were frequently obliged to liquidate their tail-risk hedges to offset losses elsewhere. Diggle is also keen to point out that 'I'm not a permabear, like the Nouriel Roubinis and Albert Edwardses of this world.' His investment opinions are tactical, not ideological. His misgivings about asset prices have a simple origin: 'Not enough people have hedges.' VAILS intends to combine selected long volatility positions in indices and stocks with credit-default swaps, not unlike the approach that served Diggle and his investors so well in 2008. For investors running tail-risk funds, the challenge is staying alive while the market, as it usually does, rises. 'We were able to carve out sufficient returns in a low-volatility environment through capital arbitrage,' said Diggle. That means trying to exploit differences in valuations between different securities of the same issuer. This time round, VAILS is unlikely to deploy capital arbitrage strategies. Markets, in some respect at least, have become more efficient in the last 15 years. While positioning for the correction that Diggle believes must come, and generating some alpha to keep investors content in the meantime, VAILS intends to wrap the long volatility/CDS strategy up with a complementary trading model. His proprietary model uses an AI engine, designed to trawl through sheaves of corporate data and communications and spotlight assets that are abnormally vulnerable to failure, be that because they are overvalued, fraudulent or high risk. 'I am getting very frustrated': My mother's adviser has not returned my calls. He manages $1 million. Is this normal? This chart shows why investors should be worried about the latest bond-market selloff It's my dream to travel to Africa. My husband says it's not on his bucket list. Do I pay for him or go alone? 'What we found horrified us': My elderly relative mistook charity envelopes for overdue bills — and gave thousands to other family members Bond 'vigilantes' are sending warnings globally. What does that mean for your portfolio? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Finextra

14-05-2025

Business
Finextra

Carrington Labs teams with Oscilar to advance credit risk analysis suite

Carrington Labs, a leading provider of credit risk analytics, has partnered with Oscilar, a leading provider of real-time decisioning infrastructure, to give lenders faster, easier access to advanced credit risk solutions. 0 The collaboration combines Carrington Labs' tailored, explainable credit risk models with Oscilar's real-time decisioning infrastructure to reduce integration time and improve credit risk workflows for banks, fintechs, and credit unions. Through the partnership, Carrington Labs' advanced credit risk and cash flow underwriting models — using a combination of transaction level data, credit bureau data and behavioral insights — are delivered via Oscilar's real-time decisioning platform. Oscilar provides the infrastructure to activate these models within a lender's existing decisioning flows, without code or system rework. Together, the two platforms create a unified solution that gives lenders access to: Smarter credit risk insights with Carrington Labs' models for cash flow underwriting and loan and limit sizing Fast implementation and quick deployment using Oscilar's no-code platform Greater inclusivity with the ability to accurately assess borrowers with thin files or non-traditional income. 'Lenders want to improve how they assess credit risk, but many are limited by legacy systems and long implementation cycles,' said Jamie Twiss, CEO of Carrington Labs. 'Partnering with Oscilar makes it significantly easier for lenders to access and act on better credit risk insights and improve their underwriting using infrastructure they already have.' 'Carrington Labs brings a strong capability in credit risk analytics and alternative data,' said Neha Narkhede, Co-Founder and CEO of Oscilar. 'Together, we're helping lenders build a more complete picture of creditworthiness, without adding complexity.' Carrington Labs offers lenders and credit providers credit risk insights optimized to the probability of default percentages, loan and limit sizing, and early warning indicators of credit risk.

Crisil named Category Leader in Chartis Credit Lending Operations

Globe and Mail

07-05-2025

Business
Globe and Mail

Crisil named Category Leader in Chartis Credit Lending Operations

NEW YORK and LONDON , May 7, 2025 /CNW/ -- Crisil, the global provider of advanced analytics and credit risk management solutions, has been recognised as Category Leader in the Chartis Credit Lending Operations, 2025: Quadrant Update. The recognition, published in April 2025 , underscores Crisil's strengths in providing cutting-edge loan origination products and market leading credit lifecycle solutions to clients worldwide. It highlights the holistic value proposition of our managed services for loan operations, including loan servicing, data remediation, limit and covenant monitoring. The Quadrant Update emphasises Crisil's position as a global leader in the credit risk management space through evaluation of its credit and risk capabilities, analytics, artificial intelligence (AI) and technology, and the dynamic feedback mechanism of its solutions. Says Ashish Vora , President, Crisil Intelligence, "We are proud to be recognised as Category Leader by Chartis. This achievement is a testament to delivering products that empower our clients to accelerate their credit decisioning and transform their credit operations. We continue to invest in AI-based analytics, cutting-edge technology and credit capabilities to stay ahead of the curve and enhance our customer centricity." The Crisil solutions covered as part of this Quadrant Update include: Credit+ suite for credit lending operations Credit+ Loan Origination: Enables clients to seamlessly manage and automate their origination process and incorporate GenAI in credit note generation and credit decisioning Credit+ Pricing Engine: Helps bank's relationship managers identify mis-priced transactions, relationships, and products using AI / ML and heuristics-based approach and recommends product pricing Credit+ Early Warning System: Helps financial institutions actively monitor the quality of their credit portfolio and lower loan-loss contingencies. It leverages GenAI to monitor internal and external data, rule-based flags, and multi-dimensional triggers to detect changes in credit quality and provide risk managers with actionable insights and corrective action plans Analytics and point solutions across collateral management, limit management and loan management journeys. This is enabled through Crisil's extensive domain expertise and technology capabilities Loan management system (LMS) migrations including system transformations, architecture rationalisations and data remediation Transaction management, including deal originations and deal setups in LMS, including risk oversight of loans throughout their lifecycle Post-close services managed across syndicated/bilateral facilities and agented/participant transactions Portfolio management activities such as periodic covenant monitoring, ongoing limit monitoring and breach reporting, Early Warning System trigger and alert monitoring, and collateral management system updates Says Abhik Pal , Global Head of Practice, Crisil Integral IQ, "The Chartis recognition reinforces our position as the preferred industry partner and is a testament to our commitment to provide utmost customer outcomes by combining managed services and tech-enabled solutions. Our comprehensive managed services, backed by our strong technical and domain capabilities, make us a trusted partner for activities across the value chain, including system migration, data remediation, loan servicing and periodic system updates." About Crisil Intelligence (formerly Market Intelligence & Analytics) Crisil Intelligence is a leading provider of research, consulting, risk solutions and advanced data analytics, serving clients across government, private and public enterprises. We leverage our expertise in data-driven insights and strong benchmarking capabilities to help clients navigate complex external ecosystems, identify opportunities and mitigate risks. By combining cutting-edge analytics, machine learning and AI capabilities with deep industry knowledge, we empower our clients to make informed decisions, drive business growth and build resilient capacities. For more information, visit About Crisil Integral IQ (formerly Global Research & Risk Solutions) Crisil Integral IQ delivers solutions and actionable intelligence to top financial institutions, driving strategic transformation, risk optimization, and operational excellence. Our offerings across research, risk, lending, analytics and operations have empowered clients to navigate complex markets, mitigate risks and unlock new opportunities. Our domain expertise, innovative solutions, future-ready technologies such as AI and data science give clients the confidence to accelerate growth and achieve sustainable competitive advantage. Our globally diverse workforce operates in the Americas, Asia-Pacific , Europe , Australia and the Middle East . For more information, visit About Crisil Crisil is a global, insights-driven analytics company. Our extraordinary domain expertise and analytical rigour help clients make mission-critical decisions with confidence. Large and highly respected firms partner with us for the most reliable opinions on risk in India , and for uncovering powerful insights and turning risks into opportunities globally. We are integral to multiplying their opportunities and success. Headquartered in India , Crisil is majority owned by S&P Global. Founded in 1987 as India's first credit rating agency, our expertise today extends across businesses: Crisil Ratings, Crisil Intelligence, Crisil Coalition Greenwich and Crisil Integral IQ. Crisil's global workforce operates in the Americas, Asia-Pacific , Europe , Australia and the Middle East , setting the standards by which industries are measured. For more information, visit Connect with us: LinkedIn | Twitter Crisil Privacy Disclaimer This press release is transmitted to you for the sole purpose of dissemination through your newspaper/ magazine/ agency. The press release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Crisil. However, Crisil alone has the sole right of distribution of its press releases for consideration or otherwise through any media including websites, portals, etc. Crisil has taken due care and caution in preparing this press release. Information has been obtained by Crisil from sources which it considers reliable. However, Crisil does not guarantee the accuracy, adequacy or completeness of information on which this press release is based and is not responsible for any errors or omissions or for the results obtained from the use of this press release. Crisil especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of this press release.

BNP Agrees to SRT Deal With PGGM Tied to $2 Billion of Loans

Bloomberg