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Working in partnership with financial intermediaries
Working in partnership with financial intermediaries

... Leigh has been selected as one of Private Asset Managers’ top 40 under 40 - 2013. In 2012, he was recognised as one of London’s leading lights in Private Client management by Citywire. Leigh is also a graduate of the 2009/10 Kleinwort Benson leadership development programme, run in association with ...
in China
in China

Optimising Risk-adjusted Returns
Optimising Risk-adjusted Returns

... The rational choice would be to select those active funds with the highest information ratios, but bear in mind these ratios are probably not constant, since out-performance against the market index is not constant. Therefore, using a strategy of only active management might go sour, and might it be ...
NBER WORKING PAPER SERIES INCOMPLETE MARKETS
NBER WORKING PAPER SERIES INCOMPLETE MARKETS

... These studies have all maintained the convenient assumption of complete markets, abstracting from the possibility that agents’ saving and investment decisions—and hence their reaction to changes in fiscal policy—may crucially depend on the extent of risk sharing within the economy. This paper contri ...
The Economic Risks of Globalization
The Economic Risks of Globalization

... risk of contagion should undesirable developments occur. Regional crises have become global risks. It is evident that national governments are no longer able to overcome the challenges of globalization single-handedly. However, when it comes to multilateral attempts at providing solutions, the track ...
the Diversity of Financial Institutions and Accounting Regulation
the Diversity of Financial Institutions and Accounting Regulation

... precisely, FAS 13, which was published in 1976, defines fair value as "[the] normal selling price, reflecting any volume or trade discounts that may be applicable". As for Europe, the first accounting standard to mention fair value was IAS 32, which was issued in 1995. The definition currently used ...
PDF
PDF

... While the recent change in land value has a strong influence on land value’s future direction, the annual return to a land investment must also be considered. One way to assess the relationship between the annual return and land values is to observe the land value/cash rent multiple. This is similar ...
capital - International Actuarial Association
capital - International Actuarial Association

... between balance sheet capital which just reflects the excess value of assets over liabilities9 and “required capital”. Required capital is the minimum amount of admissible regulatory capital that has to be held to offset and safeguard against significant adverse events, including the potential inad ...
The UK Current Account Deficit: Risky or Risk
The UK Current Account Deficit: Risky or Risk

Monetary Policy, Financial Conditions, and Financial Stability
Monetary Policy, Financial Conditions, and Financial Stability

Section 2.2
Section 2.2

... Explain why total financial assets in the economy must equal total financial liabilities. Every financial asset must be financed with some type of a claim or liability. Since all of an economy’s financial assets are just a collection of the individual financial assets, then they should also sum to t ...
Working Paper No. 594 Revisiting “New Cambridge”: The Three
Working Paper No. 594 Revisiting “New Cambridge”: The Three

AdamsSafe Harbors - Digital Access to Scholarship at Harvard
AdamsSafe Harbors - Digital Access to Scholarship at Harvard

asset value guarantees under equity-based products
asset value guarantees under equity-based products

... payment otherwise made under the contract. However, significant variations in the net risk premium were noted with respect to the length of the investment period, and, to a lesser extent, variations were also noted with respect to other underlying factors. It would therefore appear that an array of ...
Forecasting Credit Portfolio Risk
Forecasting Credit Portfolio Risk

... and Cox [1976], Merton [1977], Geske [1977], Longstaff and Schwartz [1995] or Zhou [2001]. In this model it is assumed that a default event happens if the value of an obligor’s assets falls short of the value of debt. Generally speaking, one of the model’s major shortcomings is the assumption of ava ...
GDB Position paper to BCBS365_9.docx
GDB Position paper to BCBS365_9.docx

... A flat and unique leverage ratio of 3% will unintentionally dis-incentivise low risk business and most likely harm risk reducing businesses / activities. As such we see the need to at least calibrate the ratio calculation in further areas which however contradicts the general approach of simple and ...
Basel III Pillar 3 Regulatory Capital Disclosures
Basel III Pillar 3 Regulatory Capital Disclosures

... offices in 36 countries to support customers who conduct business in the global economy. With approximately 265,000 active, full-time equivalent team members, we serve one in three households in the United States and are ranked No. 30 on Fortune’s 2015 rankings of America’s largest corporations. We ...
Financial distress and firm performance: Evidence from the Asian
Financial distress and firm performance: Evidence from the Asian

... The Asian Financial Crisis of 1997-1998 led to sharp declines in the currencies and stock market prices of a number of Asian countries/economies; it also caused repercussions to the global economy (International Monetary Fund, 2008). Prior research has studied the relationship between financial leve ...
Financial fragility and distress propagation in a network of regions
Financial fragility and distress propagation in a network of regions

... indirectly. When a firm faces consecutive losses, then the bank will apply higher financing costs to all the firms in its credit portfolio. This, even if the other firms are still financially robust. The main result of the model is that as long as regions are economically separated, agents do not be ...
The Impact of Risk Controls and Strategy-Specific Risk Diversification on Extreme Risk
The Impact of Risk Controls and Strategy-Specific Risk Diversification on Extreme Risk

... schemes that deviate from cap-weighting addressing issues (i) and (ii) and they have been demonstrated to lead to superior risk-adjusted returns, addressing possibly to some extent issue (iii).1 Traditional index providers usually employ a set of methodology choices for stock selection and weighting ...
Chapter 7 - CSUN.edu
Chapter 7 - CSUN.edu

... return on the market is 16 percent. The project being evaluated is riskier than Boe’s average project, in terms of both beta risk and total risk. Which of the following statements is most correct? a. The project should be accepted since its expected return (before risk adjustment) is greater than it ...
Clarifications to Questions and Criticisms on the Johansen
Clarifications to Questions and Criticisms on the Johansen

Chapter 1 1 2
Chapter 1 1 2

... production. Growth options allow a company to expand if market demand is higher than expected. This includes the opportunity to expand into different geographic markets and the opportunity to introduce complementary or second-generation products. It also includes the option to abandon a project if m ...
Expected Commodity Futures Returns
Expected Commodity Futures Returns

... II. Business Conditions and Expected Futures Returns Hirshleifer (1988, 1990) derives an equilibrium asset pricing theory in an economy with nonmarketable claims and limits on direct market participation which results in both systematic and commodity specific factors impacting futures prices. Extend ...
Market liquidity and stress - Bank for International Settlements
Market liquidity and stress - Bank for International Settlements

... The relationship between market and cash liquidity is a multifaceted one. Some of the links are obvious. For instance, selling an asset in a market or unwinding a profitable position is one way of raising cash. Others, however, are less apparent. In particular, it will be argued below that access to ...
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Systemic risk

In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to risk associated with any one individual entity, group or component of a system, that can be contained therein without harming the entire system. It can be defined as ""financial system instability, potentially catastrophic, caused or exacerbated by idiosyncratic events or conditions in financial intermediaries"". It refers to the risks imposed by interlinkages and interdependencies in a system or market, where the failure of a single entity or cluster of entities can cause a cascading failure, which could potentially bankrupt or bring down the entire system or market. It is also sometimes erroneously referred to as ""systematic risk"".
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