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The financial turmoil of 2007 - Bank for International Settlements
The financial turmoil of 2007 - Bank for International Settlements

Pre-Sale Fitch - The Paragon Group of Companies
Pre-Sale Fitch - The Paragon Group of Companies

Fund Transfer Pricing in a Commercial Bank
Fund Transfer Pricing in a Commercial Bank

Copyright © 2001 by Harcourt, Inc. All rights reserved.
Copyright © 2001 by Harcourt, Inc. All rights reserved.

...  Companies need money to operate, but this financing always comes at a cost  For bonds (i.e., debt): Primary cost = stated interest rate Add’l cost = loss of flexibility • Must disgorge cash on a regular basis • Many inhibitive bond covenants regarding levels of various financial ratios that mus ...
A case for high-yield bonds
A case for high-yield bonds

... those of other major asset classes, including equities, and with significantly less downside.1 As the name indicates, high-yield bonds are indeed a higher-yielding asset class that may offer both higher income and higher total return than other bonds. Even so, the high-yield bond market is often vie ...
A Causal Framework for Credit Default Theory
A Causal Framework for Credit Default Theory

... corporate financial conditions, leading to possible credit defaults. Most existing theories1 of credit default do not meet this causal requirement. The purpose of this paper is to set down a framework from which causal credit default theories can be developed through a new structure for incorporatin ...
National Grid Company plc Annual Report and Accounts 2003/04
National Grid Company plc Annual Report and Accounts 2003/04

... The Transmission Owner (TO) owns and maintains the physical assets, develops the network to accommodate new connections/ disconnections, manages a programme of asset replacement and investment to ensure the longterm reliability of the systems. Revenue from charges for using the transmission network ...
DP2007/11 Credit constraints and housing markets in New Zealand Andrew Coleman
DP2007/11 Credit constraints and housing markets in New Zealand Andrew Coleman

Managing Interest Rate Risk: Duration GAP and Economic
Managing Interest Rate Risk: Duration GAP and Economic

... par to yield 9.4 percent to maturity.  Macaulay’s Duration for the option-free version of this bond is 5.36 semiannual periods, or 2.68 years.  The Modified Duration of this bond is 5.12 semiannual periods or 2.56 years. ...
ANNUAL REPORT 2013
ANNUAL REPORT 2013

Chapter IV: How Securities are Traded? etImUlbRtRtUv
Chapter IV: How Securities are Traded? etImUlbRtRtUv

... Specialists. These members perform two roles. First, any order that the commission broker cannot execute immediately because the current market price is not at or better than the specified limit price will be left with the specialist for possible execution in the future, called broker’s broker. Seco ...
Entrepreneurship and Public Policy
Entrepreneurship and Public Policy

... Corporate Income Tax II • Poterba (1989) models how corporate income tax affects venture capital – A reduction in the capital gains tax rate would in theory lower the required expected (pre-tax) rate of return on venture investments for taxable investors – However, since most VC investors after 198 ...
DOC - Investor Overview
DOC - Investor Overview

... accepted in the United States of America for interim financial information and with the instructions to Form 10-Q. They do not include all information and footnotes necessary for a fair presentation of financial position, and results of operations and cash flows in conformity with accounting princip ...
The Untangling of Client Assets at Lehman: A Year`s Progress
The Untangling of Client Assets at Lehman: A Year`s Progress

... that more customers have opted for segregated treatment for their assets even if it means more cost. “In the new structures being set up, hedge fund clients are increasingly demanding segregated accounts,” said Edmond Parker, who runs the derivatives practice at the law firm of Mayer Brown in London ...
Rising Interest Rates: How Big a Threat?
Rising Interest Rates: How Big a Threat?

... most affected; however, the level of disintermediation with these products could be significantly lower. Other product lines, such as immediate annuities, traditional life insurance, long-term care and disability income, will actually benefit from the rise in rates. Finally, some deferred annuity wr ...
The Reliance of Structured Finance Investors on Credit Rating
The Reliance of Structured Finance Investors on Credit Rating

... Act highlights that credit ratings should be gradually removed from the criteria of financial regulations Reformers claim that the removal of rating-based regulations can eliminate the reliance of investors and of the entire financial system from the regulatory perspective. In the context, this pape ...
Presented
Presented

... Although all reasonable care has been taken to ensure the facts stated herein are accurate and that the opinions contained herein are fair and reasonable, this document is selective in nature and is intended to provide an introduction to, and overview of, the business of Converium. Where any informa ...
Credit Rating Agencies
Credit Rating Agencies

... to be a poor fit for structured finance or assetbacked pools. Because rating agencies often lacked extensive historical loss experience for innovative structures or transactions based on untested assets (for example, subprime mortgages), they used different (and sometimes inappropriate) analytical t ...
Small Cap Dividends: A Potential Path to
Small Cap Dividends: A Potential Path to

Certainty Equivalents and Risk-Adjusted Discount Rates
Certainty Equivalents and Risk-Adjusted Discount Rates

open-end credit under -truth-in- lending
open-end credit under -truth-in- lending

... ANY OPEN-END CREDIT PLAN. Further, as to any open-end consumer credit plan in existence on the effective date of the Act (July 1, 1969), the items specified herein, to the extent applicable, must be disclosed in a NOTICE mailed or delivered to the open-end consumer credit customer not later than Jul ...
financialIntermediation_KiyotakiPaper
financialIntermediation_KiyotakiPaper

Manulife Financial Corporation announces Preferred Share issue
Manulife Financial Corporation announces Preferred Share issue

... “Securities Act”), or the securities laws of any state of the United States and may not be offered, sold or delivered, directly or indirectly in the United States or to, or for the account or benefit of, a “U.S. person” (as defined in Regulation S under the Securities Act) absent registration or an ...
Market Matters EUR and USD Credit Spreads
Market Matters EUR and USD Credit Spreads

... For marketing and information purposes by UBS. For qualified investors only. The information and opinions contained in this document have been compiled or arrived at based upon information obtained from sources believed to be reliable and in good faith, but is not guaranteed as being accurate, nor i ...
The Bear Stearns Companies Inc.
The Bear Stearns Companies Inc.

... Financial instruments sold, but not yet purchased, at fair value Liabilities of variable interest entities and mortgage loan special purpose entities Accrued employee compensation and benefits Other liabilities and accrued expenses Long-term borrowings ...
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Securitization

Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations (or other non-debt assets which generate receivables) and selling their related cash flows to third party investors as securities, which may be described as bonds, pass-through securities, or collateralized debt obligations (CDOs). Investors are repaid from the principal and interest cash flows collected from the underlying debt and redistributed through the capital structure of the new financing. Securities backed by mortgage receivables are called mortgage-backed securities (MBS), while those backed by other types of receivables are asset-backed securities (ABS).Critics have suggested that the complexity inherent in securitization can limit investors' ability to monitor risk, and that competitive securitization markets with multiple securitizers may be particularly prone to sharp declines in underwriting standards. Private, competitive mortgage securitization is believed to have played an important role in the U.S. subprime mortgage crisis.In addition, off-balance sheet treatment for securitizations coupled with guarantees from the issuer can hide the extent of leverage of the securitizing firm, thereby facilitating risky capital structures and leading to an under-pricing of credit risk. Off-balance sheet securitizations are believed to have played a large role in the high leverage level of U.S. financial institutions before the financial crisis, and the need for bailouts.The granularity of pools of securitized assets can mitigate the credit risk of individual borrowers. Unlike general corporate debt, the credit quality of securitized debt is non-stationary due to changes in volatility that are time- and structure-dependent. If the transaction is properly structured and the pool performs as expected, the credit risk of all tranches of structured debt improves; if improperly structured, the affected tranches may experience dramatic credit deterioration and loss.Securitization has evolved from its beginnings in the late 18th century to an estimated outstanding of $10.24 trillion in the United States and $2.25 trillion in Europe as of the 2nd quarter of 2008. In 2007, ABS issuance amounted to $3.455 trillion in the US and $652 billion in Europe. WBS (Whole Business Securitization) arrangements first appeared in the United Kingdom in the 1990s, and became common in various Commonwealth legal systems where senior creditors of an insolvent business effectively gain the right to control the company.
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