The Institutional Risk Analyst

Researchers at Apple just released a paper that throws cold water on the "reasoning" capabilities of the latest, most powerful large language AI models. In the paper, a team of machine learning experts makes the case that the AI industry is grossly overstating the ability of its top AI models, including OpenAI's o3, Anthropic's Claude 3.7, and Google's Gemini.

Whenever you hear the magic words "blockchain" and "digital tokens," it's a good guess that whatever follows is nonsense.

Whether we are talking about corporate credit exposures or housing, the short trade may be the place to be over the next year.

We see a bright future ahead for the private label loan market....

The driving rule behind public depositor overcollateralization was the implementation of the US version of Basel III’s Liquidity Coverage Rule (LCR). It was structured such that a bank gained no operational liquidity for taking municipal deposits. Roughly, every muni deposit dollar had to be collateralized with a low yield high quality liquid asset. The net net interest margin (NIM) for the silo is zero.

Last week saw some real gems from the world of crypto currencies. Bitcoin and the enabling technology known as “blockchain” are just the latest shiny objects to fascinate the less cautious members of the investing public. The folks at Grant’s Interest Rate Observer flagged this precious headline from Bloomberg News: “This Company Added the Word ‘Blockchain’ to Its Name and Saw Its Shares Surge 394%”