In line with Hyman Minsky, we believe that stability leads to instability. Believing this and realising that institutional investment portfolios have become more vulnerable to downturns due to the fact that they have become less active and diversified made us search for solutions. This research has resulted in in the outcome that risk mitigation strategies, first introduced by CALSTRS, are the solution and should therefore be a core component of institutional investments portfolio’s. The risk mitigation approach is an innovation whereby part of the portfolio is allocated to strategies that have an academic foundation to offer tail risk protection.

In the aftermath of the great financial crisis, QE entered the markets, a zero-interest rate environment emerged, financial regulations reduced bank balance sheets and a new alternative credit landscape was formed. Disintermediation resulted in pension funds moving into residential mortgages, trade finance has become an evolving asset class and new alternative credit fintech platforms are shaping the industry. We are able to add value to this evolving landscape by introducing new players to institutional investors and bank originators to capital market players with the help of fintech platforms.