AI in Capital Markets, Private Credit Drivers, and Geopolitical Risk

Free GARP FRM Part II lesson in Current Issues in Financial Markets. 22 min read, ~3,257 words.

AI in capital markets (IMF Oct 2024): current uses include trading signals, surveillance, risk forecasting, and customer-facing chatbots. GenAI raises model concentration and data-governance concerns. AI financial stability risks (FSB Nov 2024): third-party concentration, market correlations through model homogeneity, cyber risk, and model/data governance failures. Private credit drivers (BIS Feb...

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