Some may choose to defend it as model arbitrage, but in reality, in some cases what is actually happening should be more accurately labelled as thieving. So I read with interest a recent report from consultancy firm Celent called Model Validation Best Practices: Achieving Value Added, authored by Umit Kaya and Il-Dong Kwon.
The report could have been sub-titled Stating the Bleeding Obvious, but that in no way detracts from it, for it highlights some pertinent truths about today’s financial markets.
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