With the greatest global commodity shock dynamic propagating, it’s timely to examine the banking landscape at the water’s edge just before the tsunami sweeps in. Per FDIC, the banking industry’s loss provision expense was $20.8 billion in the third quarter 2025, down $9.2 billion QoQ mostly due to Capital One’s acquisition of Discover Financial Services.Continue reading “US Regional Banks at Ground Zero of the Hormuz Commodity Shocks”
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“Too Connected to Fail”: Network Portfolio Construction
Abstract: Citation: Diversification is the cornerstone of risk-adjusted portfolio construction. Yet, despite being a well-established principle in finance, diversification has been overlooked in pairs trading strategies, which often focus solely on selecting the most cointegrated pairs in isolation from the broader market structure and without accounting for their combined behavior within a portfolio. Here, weContinue reading ““Too Connected to Fail”: Network Portfolio Construction”
Econophysics2020 