Advanced Trading – Invictus Consulting Group, LLC announced the launch of a platform designed to allow hedge funds to conduct their own stress tests on banks. The firm said the service will give banks a clear snapshot about whether a bank is over, under or fairly valued in relation to its peers.
Invictus said that hedge funds typically use algorithms to conduct bank stress tests, but the source data those algorithms rely on are often incorrect, particularly when it concerns capital and earnings.
