N
Nicholas.Campbell
Member
Stupid question I'm sure, but exactly is the difference between the two? My interpretation is they are the same thing except possibly a capital model focuses more the extreme outcomes and can allocate risk? But the notes go on to say that an ALM can be used to model capital also!
To me the notes uses the term 'ALM' when talking about determining investment strategy and 'Capital Model' when talking about determining capital requirements - but essentially they are the same. This confused me in CA1 too.
Thanks,
Nick
To me the notes uses the term 'ALM' when talking about determining investment strategy and 'Capital Model' when talking about determining capital requirements - but essentially they are the same. This confused me in CA1 too.
Thanks,
Nick