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Annual report 2013
Annual report 2013

NBER WORKING PAPER SERIES PUBLIC DEBT MANAGEMENT IN BRAZIL Francesco Giavazzi Alessandro Missale
NBER WORKING PAPER SERIES PUBLIC DEBT MANAGEMENT IN BRAZIL Francesco Giavazzi Alessandro Missale

... This paper derives the optimal composition of the Brazilian public debt by looking at the relative impact of the risk and cost of alternative debt instruments on the probability of missing the stabilization target. This allows to price risk against the expected cost of debt service and thus to find ...
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A Strict Liability Regime for Rating Agencies
A Strict Liability Regime for Rating Agencies

... accurate when the defaults actually observed for a given class of rating fall within the range of probabilities and other measurable items (for instance, loss given default) implied by the CRA issuing a certain letter grade.3 In this paper, we argue that the accuracy of ratings can be improved via r ...
Commonality In The Determinants Of Expected Stock Returns
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The EBA EU-wide Stress Test 2016
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... To fully understand the results one needs to take a closer look at the adverse scenario and the different channels (‘exposures’) through which this scenario impacts the profit and loss accounts, and thus ultimately capital. The adverse scenario foresees a demand shock (foreign and domestic) as well ...
Hedging and Speculating with Interest Rate Swaps
Hedging and Speculating with Interest Rate Swaps

... hedging or speculation? Testing theories of hedging thus requires separating the speculative and hedging components of risk management policies. Econometrically, a “between” specification in a panel data set regresses the mean of the dependent variable on the means of the independent variables. Simi ...
Self-Fulfilling Crises in the Eurozone: An Empirical Test
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... problems faced by emerging countries that issue debt in a foreign currency, usually the dollar. These countries can be confronted with a ‘sudden stop’ when capital inflows suddenly stop, leading to a liquidity crisis (see Calvo et al., 2006). This problem has been analysed extensively by economists, ...
Victory Capital Management Inc ADV Part 2A
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... accounts and (2) pooled vehicles. Investors should note that investment decisions for separate accounts are provided at the client account level, whereas the investment decisions for pooled vehicles are made at the fund level. Thus, investment decisions that are made for separate accounts may vary f ...
Chapter 27 The Theory of Active Portfolio Management
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... A. portfolio weights are sensitive to large alpha values which can lead to infeasible long or short positions for many portfolio managers. B. portfolio weights are not sensitive to large alpha values which can lead to infeasible long or short positions for many portfolio managers. C. portfolio weigh ...
The Future of Futures: The Time of Money in Financing and Society
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... hereby authorised with full powers to issue shares in the Company from time to time and upon such terms and conditions and for such purposes as they may deem fit subject always to the approval of the relevant government/ regulatory authorities being obtained for such issue and provided that the aggr ...
Online Chapter 15 LEASE FINANCING AND BUSINESS VALUATION
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... lease may have equal or even more potential to force the business into bankruptcy, but the firm's debt ratio remains at 50 percent. To correct this accounting deficiency, accounting rules require businesses that enter into certain leases to restate their balance sheets to report the leased asset as ...
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...  I have other savings and investments which I can use for most needs  I may need this investment if I needed access to a significant amount of money  I would almost certainly need access to this investment ...
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... analyses indicate that regulations or policies that restrict or raise the costs of financial innovation can slow technological innovation and long-run economic growth. For example, several studies indicate that the relaxation of regulatory restrictions on competition among U.S. banks in the 1970s an ...
Essays on Adverse Selection and Moral Hazard in Insurance Market
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... consideration, they commonly assumed the presence of complete information. The concept of complete information implies that all the information is transparent and equally known to both parties. Conversely, the concept of asymmetric information implies that the information known to one party may be u ...
expected returns
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... mean that we see no role for bonds. Within an asset liability management (ALM) and risk framework there will always be a place for bonds. We should also point out that the -3.5% is based on the German ten-year benchmark, which has almost the lowest yield out there. According to our projections for t ...
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... previously reported separately prior to full year 2010 3 Includes India Wholesale results from statutory 2008 to statutory 2011. Subsequently reported as part of Unallocated 4 Unallocated consists of the Group’s other operating segments that are not separately reportable (including Home Improvemen ...
Impartial Investing - University of Michigan Law School
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... income interest, trust investments in income-producing assets, such as corporate bonds, rental properties, or dividend-paying stocks, generate returns in the form of interest, rents, and dividends that are distributed to the surviving spouse as the trust receives them. By contrast, other types of in ...
Synchronization risk and delayed arbitrage
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... overpriced asset is sold short. Short-sellers must hold the short-sale proceeds in a margin account that pays minimal or no interest. Moreover, if the stock is ‘‘on special,’’ that is, if it is difficult to locate shareholders who are willing to lend the share, short-sellers will receive a negative i ...
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... geno-practice of financial derivation—what I have called: reiterative derivation. I will endeavour to reiterate, to repeat otherwise, to displace the derivative distinction which apart from providing the financial markets with ever new business opportunities, makes financial instruments like options ...
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... are subject to large fluctuations compared to developed economies and also more prone to suffer balance of payments crises as well as default on their debt. Mendoza (1995), for example, provides compelling evidence that fluctuations in output as well as the terms of trade are on average more than tw ...
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... Specific instructions Terms highlighted in bold italics indicate that the definition is provided either in Reporting Standard ARS 701.0 ABS/RBA Definitions for the EFS Collection (ARS 701.0) or in this Reporting Standard. All derived fields in the form are shaded in grey and are explained in words a ...
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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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