Infrastructure as an asset class is hardly a new idea. Retirement funds are attracted to the promise of higher turns, long-dated cash flows, and consistency with increasingly important ESG factors. Insurers, unlikely retirement funds, have to hold risk-based capital against the risks inherent in their investments. This makes it more difficult to underestimate the risks …
Continue reading “Capital implications of infrastructure assets for insurers under SAM”
Systemic risk is risk to the “system” in some way. In the financial services world, it is often defined in one of two ways: The risk of contagion, where failure of an entity leads to distress or failures of others [micro prudential] The risk of an event that can trigger serious consequences for the real economy. …
I love to read, so I’m not proud to admit right upfront that everything I know about “Love in the time of cholera” I learnt in 3 minutes from wikipedia starting about 3 minutes ago. Seems like a book I should read. But another than playing on the well known book and movie title, this …
South Africa has a pretty rich history of banking failures. This paper, part of a masters, by Sipho Makhubela, provides an interesting over of banking failures since 1994. I haven’t read the entire paper yet, but Section 4 (starting on page 72) outlines the background behind banking failures in South Africa and is fascinating reading …
