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Regulatory Constraints on Leverage: The
Regulatory Constraints on Leverage: The

... leverage requirements. Leverage at those institutions was stable in recent years, whereas leverage at U.S. investment banks (not subject to these constraints) began trending sharply upwards starting in 2004. The combination of stable Tier 1 ratios and sharply rising leverage at some banks illustrate ...
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... the regulatory agency (HANFA). Performance measurement of the pension funds is provided by using accounting units. The index used to calculate returns is called MIREX. The reference rate of return is defined as a weighted arithmetic mean of all mandatory pension funds average rates of return in the ...
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... The Keynesian model used by central financial planners over the last half century calls for tight policies when the economy is hot…and loose policies when it is cool. This is supposed to smooth out the boom/bust cycle. But what we’ve gotten is not counter-cyclical policies, but just a boatload of ea ...
Heterogeneous Risk Preferences in Financial Markets
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... that asset price co-movements with the stochastic discount factor are forecastable. When agents exhibit heterogeneous preferences, the stochastic discount factor does not correspond to a specific agent in every period, but to a time varying level of risk aversion. This level is falling through time ...
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... Placing a duty on fund managers and product providers to collate and supply information on transaction costs is essential to completing the annual governance statements by the Chairs of Trustees of occupational DC pension schemes (including Master Trusts) and provider’s Independent Governance Commit ...
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... Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved ...
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... borrowers with differing characteristics. In particular, small firm borrowers of merging banks appear to face additional difficulties in tapping credit in the short run following a merger. Also, borrowers of target banks (especially small target banks when the acquiring bank is large) seem to be har ...
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... n , that is the class of Crescent-Star finances making use of PM only, admits designs of a financial system that may run into a perpetual state of negative interests. (In other words Crescent-Starpm n is strictly included in Crescent-Starpm . 3. WORKING HYPOTHESIS: in the absence of PM, the costs of ...
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... create deposits on its reserves. If households decide to hold some of their deposits in currency, this reduces the reserves of the banking sector and the ability to create money. The currency deposit ratio (cr = C/D) represents the proportion of deposits households hold as cash. If this exceeds zero ...
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... administration in the areas of tax reform and deregulation could have a significant impact on the corporate sector. Healthy corporate balance sheets are a pre­ requisite for these policy proposals to gain traction and stimulate economic risk taking. Many nonfinancial firms do have the balance sheet ...
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... administration in the areas of tax reform and deregulation could have a significant impact on the corporate sector. Healthy corporate balance sheets are a pre­ requisite for these policy proposals to gain traction and stimulate economic risk taking. Many nonfinancial firms do have the balance sheet ...
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... not presented by traditional ETFs: the risk that the other party to a derivatives trade will become bankrupt, default or otherwise not meet its obligations (known as “counterparty exposure”). An ETF with counterparty exposure would not perform as designed if a derivatives counterparty fails to perfo ...
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... ICMA’s 2014 study on the state and evolution of this market. It reviews how liquidity and market efficiency are being defined and impacted by the confluence of extraordinary monetary policy and unprecedented prudential and market regulation, and what the implications for the market are. Unlike the p ...
The State of Middle Market Financing in the US
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... produced no more than a “hiccup”, surprising lenders as almost a non-event in the equity and loan markets, and transactions pushed through the U.S. presidential election business as usual. Recent statistics evidenced a slowdown in middle market private equity buyout activity. In 2016, $366.8 billion ...
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... Hedge funds often employ opportunistic trading strategies on a leveraged basis. It is natural to find their footprints in most major market events. A "small bet" by large hedge funds can be a sizeable transaction that can impact a market. This study estimates hedge fund exposures during a number of ...
The volatility of banks in the financial crisis
The volatility of banks in the financial crisis

... are very important in an economy. That is also why it is interesting to look at volatility of banks and more specifically at the drivers of it. The drivers cause volatility to increase in recessions and to decrease in economically better years. But why is that and what are the drivers of that? And h ...
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Interbank lending market

The interbank lending market is a market in which banks extend loans to one another for a specified term. Most interbank loans are for maturities of one week or less, the majority being overnight. Such loans are made at the interbank rate (also called the overnight rate if the term of the loan is overnight). Low transaction volume in this market was a major contributing factor to the financial crisis of 2007.Banks are required to hold an adequate amount of liquid assets, such as cash, to manage any potential bank runs by clients. If a bank cannot meet these liquidity requirements, it will need to borrow money in the interbank market to cover the shortfall. Some banks, on the other hand, have excess liquid assets above and beyond the liquidity requirements. These banks will lend money in the interbank market, receiving interest on the assets.The interbank rate is the rate of interest charged on short-term loans between banks. Banks borrow and lend money in the interbank lending market in order to manage liquidity and satisfy regulations such as reserve requirements. The interest rate charged depends on the availability of money in the market, on prevailing rates and on the specific terms of the contract, such as term length. There is a wide range of published interbank rates, including the federal funds rate (USA), the LIBOR (UK) and the Euribor (Eurozone).
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