JD Risk Solutions is a new and exciting consulting company offering specialist consultancy services to the financial sector.
As the founder of JD Risk Solutions, I have been very fortunate in my 17-year tenure in Investment Banking to have done so many different things, and also to have been given the freedom to innovate and develop new ideas.
This fortune at times came as an unfortunate side effect of circumstances – the market had never dealt with anything like the scale of the failure of a Lehman Brothers default before, and watching AAA rated monoline insurer CDS trading at 40pts upfront from my seat on the XVA trading desk was beyond the realms of imagination only a few months before.
The period that commenced with the US Mortgage Crisis in 2007 marked a “new normal” for markets going forward. Models broke, and events “never seen before” kept occurring with alarming frequency. The fungibility of positions in financial markets were reliant on trust, and this trust had been badly broken. Suddenly an interest rate swap facing one counterparty no longer had the same value as those facing another, and the comfort people had in deposits sitting in their bank accounts were dependent on the letters that formed the name of the bank.
As a result of this “new normal”, there has been much regulatory change, and whilst initially it was concentrated on the banking sector, it has now, and continues to hit the very fabric of the financial markets. The cost of doing business is much greater than ever before and this has led to changes in market liquidity, market volatility, and the way participants need to access markets.
Changes bring opportunity, and we have seen an explosion in the number of new entrants arriving to offer innovative solutions to reduce costs, and also a number of disrupters which are competing toe-to-toe with top tier investment banks.
I am very excited at the prospect of JD Risk Solutions being able to help in this difficult but exciting period. We do not claim that we know all of the risks that you are not capturing in your risk models, nor tell you we have the secret sauce for making all banks sign up for your new fintech offering.
What we do however promise is that we will work in partnership with you, using the same skills that we have developed by working in the industry and with others like yourselves to give you the best opportunity to succeed.
In our Perspectives section, we will try to give your our latest thoughts and ideas that hopefully can help your business and give you some insight in the way we think and work.
Please contact us if you would like to know more