"Nobody wants to be long CDS on any of the brokers going into the earnings meat-grinder for [the third quarter]," says Chris Whalen of Institutional Risk Analytics, who sees "no risk of failure" for Morgan Stanley or Goldman Sachs.
Christopher Whalen of Institutional Risk Analytics, a consultancy, calls these commitments a "liquidity black hole".
Any threat to stop doing business with lenders is potent.Christopher Whalen of Institutional Risk Analytics, a ratings firm, thinks the repurchase wave could knock a percentage point or more off banks' returns as it builds.
"Sometimes borrowers don't think buying a new car prior to closing a loan is a problem, but it is," said Carolyn Mitchell, a senior vice president of Aklero Risk Analytics, which provides software for mortgage quality control.
By Guy Bailey, head of atlases at global risk analytics company, Maplecroft, @maplecroftrisk This content is brought to you by Guardian Professional.
It leads to delays and failure of transactions, misreporting, and inaccurate risk analytics.
By assessing incidents of human trafficking or slavery, national laws, and the quality of law enforcement across 198 countries, risk analytics company Verisk Maplecroft found that 115 countries were at high or extreme risk of using slaves.
In March this year Maplecroft, a risk analytics company, analysed the risk of sexual violence in conflict across 15 years using indicators such as the "systematic use of sexual violence as a weapon of war".
Whether it is using analytics to predict customer behavior, set pricing strategy, optimize ad spending or manage risk, analytics is moving to the top of the management agenda.
Typically, the institutional investors take an a la carte approach to building a comprehensive portfolio, getting risk analytics, investment advice and fund options from a variety of providers.
