What Happens When Machine Learning Finance Models Fail

David Gustin is the chief strategy officer for The Interface Financial Group responsible for digital supply chain finance and is a contributing author to Trade Financing Matters. These are some strange times. Look, we have $16 trillion of negative yielding bonds, that's T, for trillion. I'm asked by non-financial people why anyone would want to buy negative yields (you pay to hold them, btw) and I reply, it's not about income, it's about trading that rates will fall further. Which got me thinking: If we are in some liquidity trap world and negative interest rate environment, what does that do to all these invoice financial models being built using the latest and greatest in artificial intelligence and machine learning?