FinMetrics - Financial Risk Management that works

Assess and manage your exposures to take the right decisions.

FinMetrics puts your data and experience to work.

FinMetrics accompanies you with its world-leading expertise in the fields of financial valuation and risk management.

FinMetrics builds financial decision-making dashboards providing you with a transparent and managerial view of your exposures, enabling you to take action and to optimize your resources.

We serve corporate treasuries and corporate financial services of international groups, financial brokerage houses, private bankers, pension funds, family offices, asset managers and insurance companies.

Finance, Economics and Risk Management thoughts

Extreme times and Liquidity, by Hugues Pirotte

Articles blame Quantitative Finance (QF) for not being adapted to extreme events. This is clearly a hot topic. Now, there two statements we would like to share with you:

a) Refining the current models to include a higher frequency of extreme events, etc... will make models even more complex and harder to understand.

b) Second, the kind of illiquidity you may face in extreme times creates a binary situation: you get your refinancing or you don’t get it. Therefore, more than ever, the philosoph...

Treasurers: Credit Risk component is back in the equation!, by Hugues Pirotte

Hedge effectiveness implementation will be harder this year given the evolution of the credit spread and its size for most companies. CFOs and Treasurers will have to handle this problem and solutions are to be provided.

Let’s take a simple interest-rate hedge. A FRN hedged by a swap. Since it is the same structure of interest rates that underlies both instruments, it is still quite easy to provide a clear hedge and the hedge effectiveness report will therefore be quite affordable. Now, if the cred...

Risk Management for Quants? No! For Managers!, by Hugues Pirotte

Over the last year, it is impressive the amount of garbage one can read. Articles on the responsibility of quantitative finance, on the compensation bonuses, on hedge funds’ guilt, ..., show that it is always tempting to try to blame someone and to focus attention on a escape-goat. In fact, we are all responsible and we have all been irresponsible. Let’s take some examples and show their trade-off, because there is always a trade-off between various arguments.