Finance professionals (including academics) should start replacing some terms, which may date back a century, used in our field. One example is the widely used term “fix” that refers to the determination of market-clearing (in economics terms equilibrium, i.e. when demand equals supply) price and/or rate. Recent multi-billion legal settlements regulators achieved show that the processes of “silver fix”, “gold fix” and “currency fix” were (allegedly?) manipulated by the market participants, i.e. banks and dealers. In Main Street, the word “fix” may carry a bad connatation (e.g. “game was fixed”). Why should Wall Street continue using terms which may suggest that financial markets may be unfair, especially when the recent events bolstered potential notion of this unfairness since some big banks, dealers and traders are charged with “fixing the fixes” or “manipulating the fixes”! These reinforce the bad connatation some finance terms may carry, “silver or currency fix was fixed”!!!
Hofstra’s Master of Science in Finance program is ranked 43rd nationally by The Financial Engineer. One of the more successful tracks of Zarb’s MS Finance program is its Risk Management concentration. Dr. Karagozoglu hopes that this success will encourage financial regulators – the SEC, CFTC, OCC, FINRA and the Fed- as well as the exchanges to hire top ranked risk management degree holders from Hofstra University’s Zarb School of Business.
Hofstra University GARP-Global Association of Risk Professionals Chapter and HQT-Hofstra Quants & Traders will be co-hosting a seminar on Wednesday November 12, 2014 from 6pm to 8pm in the Martin B. Greenberg Trading Room at CV Starr Hall.
Topic: “Common Challenges in the Development of a Statistical Credit-Worthiness Model”
Speaker: Alma Chen, Associate Director, Head of Analytic Development Group Americas, S&P Capital IQ®,
In this presentation, Alma Chen will cover the type of model to be considered in credit risk segment; how to collect the right ingredients for the model and the methodologies; and how to measure the performance, and will conclude with a discussion.
This event is free for GARP members, please register at GARP’s website using the link above.