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The financial cycle and macroeconomics
The financial cycle and macroeconomics

... from 1 to 8 years: this is the range that statistical filters target when seeking to distinguish the cyclical from the trend components in GDP. By contrast, the average length of the financial cycle in a sample of seven industrialised countries since the 1960s has been around 16 years. Graph 1, take ...
CESifo Working Paper no. 5776 - Center for Regional Economic
CESifo Working Paper no. 5776 - Center for Regional Economic

... Financial markets have grown rapidly over the last decades, especially in high-income countries. Looking at the United States and Great Britain, for example, the ratio of private credit relative to GDP has increased from a value of about one in the 1980s to around two in recent years.1 Similar trend ...
Expected Return
Expected Return

... large number of explanatory factors. If a theory of asset pricing is to have value, it must explain returns using a reasonably limited number of explanatory variables (i.e., systematic factors). 28. The APT factors must correlate with major sources of uncertainty, i.e., sources of uncertainty that a ...
1. The person generally directly responsible for
1. The person generally directly responsible for

Blackstone Alternative Multi
Blackstone Alternative Multi

... class, investment style, sub-adviser or security may be incorrect and this may have a negative impact upon performance. Derivatives Risk – the use of derivatives involves the risk that their value may not move as expected relative to the value of the relevant underlying assets, rates, or indices. De ...
Knowledge Market Theory - Annual International Real Options
Knowledge Market Theory - Annual International Real Options

... we assume that they only executes in conjunction with Variable and Semi-Fixed Processes, never ...
Multi-stock portfolio optimization under prospect theory
Multi-stock portfolio optimization under prospect theory

... prospect theory sets wrong incentives, as the trade-off between gains and losses is not present. The agent strives for an infinite portfolio. By the infinite portfolio he is exposed to infinite risk. As this excessive risk taking is not desirable, our solution is to restrict the risk of the portfoli ...
background on savings institutions
background on savings institutions

Asset ALLOCAtION FUNDs - PGIM Investments
Asset ALLOCAtION FUNDs - PGIM Investments

... periodically rebalances the three asset class portfolios to bring them back to their original allocations. Why is rebalancing important? Consider this example: If large-cap stocks have a great year and long-term bonds don’t, your portfolio’s exposure to large-cap stocks would increase, which could i ...
financial_markets_and_institutions(1)
financial_markets_and_institutions(1)

Regulating Finance and Regulators to Promote Growth
Regulating Finance and Regulators to Promote Growth

... are typically averaged over 30 or 40 years. The studies control for many other possible determinants of economic growth such as initial income, educational attainment, inflation, government spending, openness to trade, and political instability (King and Levine 1993; Levine 1998, 1999; Levine, Loayz ...
Portfolio choice with jumps: A closed-form solution
Portfolio choice with jumps: A closed-form solution

Behavioral Segmentation White Paper 9-11
Behavioral Segmentation White Paper 9-11

investment banking outline
investment banking outline

The history of Fannie and Freddie points to risks from both populism
The history of Fannie and Freddie points to risks from both populism

LEBANON THIS WEEK - Issue 387
LEBANON THIS WEEK - Issue 387

chapter 2 2
chapter 2 2

... learned that only 14% of the firms used any form of a discounted-cash-flow (DCF) technique, 70% indicated they used no DCF approach at all, and 9% used no formal analysis of any form. Little use was ever made of any market value rules afforded by present-value analysis.xii In an examination in 1986 ...
Infrastructure - Debt and Equity Investments for UK Insurers
Infrastructure - Debt and Equity Investments for UK Insurers

... Infrastructure debt has an attractive maturity and credit profile for a U.K. annuity fund ...
Equity Management
Equity Management

... Equity redemption is the process of returning equity in cast to member-patrons who have previously invested. The over invested or inactive members should not be responsible for financing a cooperative they do not use. Failure to redeem equity reduces member realized return on equity (ROE). ...
Spotlight on catastrophe bonds
Spotlight on catastrophe bonds

Liquid Capital and Market Liquidity
Liquid Capital and Market Liquidity

Managing Public Debt and Its Financial Stability Implications
Managing Public Debt and Its Financial Stability Implications

TA Pai Management Institute - Xavier Institute of Management
TA Pai Management Institute - Xavier Institute of Management

... Arbitrage activities therefore keep the market efficient. That is, such activities ensure that prices closely conform to their values as predicted by economic theory. Market participants, like brokerage houses and investment banks have an advantage when it comes to arbitrage vis a vis individuals. ...
Sovereign and corporate credit risk
Sovereign and corporate credit risk

... spreads from January 2008 to February 2010.3 Our analysis differs in several aspects. First, we concentrate on the credit risk transmission to non-financial firms in developed economies, while they do not distinguish between 1) banks and other firms or 2) developed and emerging markets. We expect tr ...
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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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