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Is collateralized lending the trigger for the next stock market crash?

The collapse of two Bear Stearns hedge funds in July 2007 is in hindsight often seen as the first warning signal of the approaching financial crisis. Possibly, the default of…

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Orbit36 cited in the Wall Street Journal

Orbit36 and Andreas Ita feel very honored to be quoted in the September 22, 2021 edition of the Wall Street Journal.  The excellent article “Credit Suisse’s Archegos Disaster Exposes Cracks…

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Credit Suisse’s Archegos case – fundamental questions remain unanswered

Following the $5.5bn loss with hedge fund Archegos, the Board of Directors of Credit Suisse appointed a Special Committee to conduct an independent external investigation of the case. The results…

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Did the UK regulator disable the alert system on Archegos trades?

Prime brokerage is a global business. Investment banks and their clients will always arrange their trades in the jurisdictions that are most favourable to them. According to media reports, Archegos…

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Orbit36 presence at 24th Annual Bank Capital Management Conference

We are grateful that Orbit36 was invited again this year to the Marcus Evans Annual Bank Capital Management Conference. This industry-leading event includes mainly speakers from banks, banking supervisors and…

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Archegos case reveals flaws in RWA calculation and Stress Testing methods

The large losses of some banks in their derivatives transactions with hedge fund Archegos indicate serious shortcomings in regulatory capital regulation and stress testing methods for collateralized OTC derivatives according…

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Archegos – A déjà vue of wrong risk-return pricing?

Did Credit Suisse’s Board forget the lessons from the 2008/2009 financial crisis? A key lesson learned was that banks need to price the risks they take appropriately and that investment…

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Orbit36 launches Board of Directors Training

A number of incidents in banks have shown that correctly assessing the risks is crucial to avoid losses and reputational damage. Board members of a bank need to have sufficient…

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Orbit36 appoints Claude F. Moser, former Group Treasurer of UBS, as Vice Chairman

We are excited to announce the addition of Claude F. Moser to the Orbit36 team. In his new role as Vice Chairman, Claude will act as senior advisor as well…

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Archegos – Why some banks lost billions

Following the tremors around the default of hedge fund Archegos, some banks suffered enormous losses but others were barely hit. We take a look at why banks like Credit Suisse…

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How fit are you on company valuation?

Valuations play an important role in M&A transactions and the annual testing of goodwill after an acquisition. Particularly for banks, valuations can be challenging. Senior executives and board members should…

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How to update your strategic business plan for the latest COVID-19 developments?

Two months ago, we outlined 4 possible scenarios for the next three years, depending on the further progression of the COVID-19 pandemia (Strategic Planning in uncertain times – A few…

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When an unlikely scenario becomes reality – A few thoughts on the impact of COVID-19 on the future of stress testing

  A year ago, I spoke at the Annual Bank Capital Management Conference on the usefulness of stress tests for ICAAP. If someone had asked me on that warm summer…

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When the regulator grasps the thrust levers – ad-hoc banking regulation in 2020

  Flying an airplane is a delicate task. Under difficult conditions, a pilot has to rely on his experience and intuition, while adhering to a complex set of rules. Applying…

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Strategic Planning in uncertain times – A few suggestions for this year’s planning cycle

Most large firms are in the midst of their annual planning cycle. In light of the uncertainties around COVID-19, strategic planning has perhaps never been more difficult than this year….

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Robin Dutt joins Orbit36 as Managing Partner

Message from Robin and Andreas:
With great pleasure we announce today that Robin Dutt joins Orbit36 as Managing Partner. We worked together for many years as senior managers at UBS…

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AT1 bonds imply that the economic stimulus programs have reduced the risk of a banking crisis

The prices of AT1 bonds allow to infer the probabilities with which CET1 falls below critical thresholds.
Additional Tier 1 (AT1) bonds play an important role in the capital structure…

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Bank share prices imply a significant worsening in CET1 ratios

Implied CET1 ratios suggest significant loss of capital.
Bank stocks have lost between 30% and 50% since their temporary highs in February. With the spreading of COVID-19 in Europe and…

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Six questions I would raise as a board member of a bank these days

The strategic questions a bank management has to address.
1. Liquidity and funding risks?
a. Are there any liquidity movements which require immediate attention?
b. Withdrawals of client deposits due…

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Why are bank stocks suffering from the Corona Virus?

Should we worry about the weak performance of bank stocks?
While initially financial markets were surprisingly relaxed about the outbreak of the Corona Virus in China, market sentiment has completely…

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