accounting and market based risk measures as predictors of bank
... can create a concern about the solvency of other banks and can prompt a systemic banking crisis. First of all, it can decrease the solvency of a bank. Consequently, the banking system loses its confidence and bank runs can occur. Moreover, systemic risk can lead to the ineffective distribution of lo ...
... can create a concern about the solvency of other banks and can prompt a systemic banking crisis. First of all, it can decrease the solvency of a bank. Consequently, the banking system loses its confidence and bank runs can occur. Moreover, systemic risk can lead to the ineffective distribution of lo ...
Math Gone Mad: Regulatory Risk Modeling by the Federal Reserve
... risk modeling agenda—at the center of which is the use of the Federal Reserve’s mandated stress tests to determine banks’ regulatory capital requirements. The Fed is following a perfect recipe for a new systemic meltdown: ■■ It is stamping out the diversity in and competition among risk management p ...
... risk modeling agenda—at the center of which is the use of the Federal Reserve’s mandated stress tests to determine banks’ regulatory capital requirements. The Fed is following a perfect recipe for a new systemic meltdown: ■■ It is stamping out the diversity in and competition among risk management p ...
The Dark Side of Universal Banking: Financial Conglomerates and
... THE DARK SIDE OF UNIVERSAL BANKING ...
... THE DARK SIDE OF UNIVERSAL BANKING ...
law, share price accuracy and economic performance: the
... Their ex post losses from paying too much for some shares should therefore approximately average out to their ex post gains from paying too little for others. As for helping investors who are not diversified, it is probably better public policy to engage in an educational campaign urging them to sta ...
... Their ex post losses from paying too much for some shares should therefore approximately average out to their ex post gains from paying too little for others. As for helping investors who are not diversified, it is probably better public policy to engage in an educational campaign urging them to sta ...
NBER WORKING PAPER SERIES PRICE Nicolae Gârleanu
... crises, with the one that started in 2007 being an excellent case in point. Banks unable to fund their operations closed down, and the funding problems spread to other investors, such as hedge funds, that relied on bank funding. Therefore, traditional liquidity providers became forced sellers, inter ...
... crises, with the one that started in 2007 being an excellent case in point. Banks unable to fund their operations closed down, and the funding problems spread to other investors, such as hedge funds, that relied on bank funding. Therefore, traditional liquidity providers became forced sellers, inter ...
Rutland, VT Housing Needs Assessment and Market Study
... The City of Rutland is struggling with a stock of about 152 vacant structures. The highest concentrations of these structures are observed west of Route 7, especially just northwest of downtown Rutland ...
... The City of Rutland is struggling with a stock of about 152 vacant structures. The highest concentrations of these structures are observed west of Route 7, especially just northwest of downtown Rutland ...
the Final Report ( 782 KB)
... initially undertaken to explore the developments in policy and practice in England, Scotland and Wales over the last number of years. Following this, a number of qualitative interviews were conducted with a range of key sectoral stakeholders in Northern Ireland, England, Scotland and Wales, includin ...
... initially undertaken to explore the developments in policy and practice in England, Scotland and Wales over the last number of years. Following this, a number of qualitative interviews were conducted with a range of key sectoral stakeholders in Northern Ireland, England, Scotland and Wales, includin ...
REIT Stocks: An Underutilized Portfolio Diversifier
... Actively managed fund investors remain underweight REITs Despite the proliferation of REITs in major equity market indexes, many investors may be underexposed to this asset class. For example, investors who utilize actively managed U.S. equity mutual funds within their portfolios may hold suboptimal ...
... Actively managed fund investors remain underweight REITs Despite the proliferation of REITs in major equity market indexes, many investors may be underexposed to this asset class. For example, investors who utilize actively managed U.S. equity mutual funds within their portfolios may hold suboptimal ...
Naked Short Selling
... only on day t+3 on the basis of the rebate rates in the OTC stock-borrowing market on day t+3.6 The short seller may want to borrow and deliver if these rebate rates are positive and fail if they are negative. Second, as explained by Culp and Heaton (2008), a FTD results either in automatic stock b ...
... only on day t+3 on the basis of the rebate rates in the OTC stock-borrowing market on day t+3.6 The short seller may want to borrow and deliver if these rebate rates are positive and fail if they are negative. Second, as explained by Culp and Heaton (2008), a FTD results either in automatic stock b ...
2.2.1 What
... are mortgages that are affected by inflation in an economy. The reason why they are affected by the inflation is when an investor makes an investment. They want to make sure that what’s valid 10 DKK today will also be worth 10 DKK in the next twenty years. Not just an investment with only 10 DKK plu ...
... are mortgages that are affected by inflation in an economy. The reason why they are affected by the inflation is when an investor makes an investment. They want to make sure that what’s valid 10 DKK today will also be worth 10 DKK in the next twenty years. Not just an investment with only 10 DKK plu ...
What Does a Mutual Fund`s Average Credit Quality
... Putnam’s reported AA Average Credit Quality implies that the Income Fund’s probability of default or expected loss due to credit risk is equivalent to a portfolio of AA rated bonds. According to S&P, the cumulative five-year default rate of AA rated securities is 0.28%.vi Panel D of Exhibit 3 calcul ...
... Putnam’s reported AA Average Credit Quality implies that the Income Fund’s probability of default or expected loss due to credit risk is equivalent to a portfolio of AA rated bonds. According to S&P, the cumulative five-year default rate of AA rated securities is 0.28%.vi Panel D of Exhibit 3 calcul ...
Real Estate Market Risk in Bank Stock Returns: Evidence for 15
... sector. The first condition can be easily verified through analysis of the annual reports of banks. The second condition, concerning the systematic influence of the real estate conditions on bank valuations, as a function of bank asset exposure, is analyzed below. ...
... sector. The first condition can be easily verified through analysis of the annual reports of banks. The second condition, concerning the systematic influence of the real estate conditions on bank valuations, as a function of bank asset exposure, is analyzed below. ...
Chapter One * Introduction - Mutual Fund Directors Forum
... This has no connection with securities lending as, by its nature, it is a sale by someone who does not have, and has no intention of obtaining, the security they are selling. This practice has now been banned by a number of regulators worldwide and has also been condemned by the international securi ...
... This has no connection with securities lending as, by its nature, it is a sale by someone who does not have, and has no intention of obtaining, the security they are selling. This practice has now been banned by a number of regulators worldwide and has also been condemned by the international securi ...
Pushing further in search of return: The new private equity model
... Coming out of the crisis, bond-for-loan structures dominated the lending landscape, allowing sponsors and some leveraged corporates to use the bond market to replace ageing, and sometimes tight-to-test, loan financings. The popularity of such structures and the arrival of new institutional players i ...
... Coming out of the crisis, bond-for-loan structures dominated the lending landscape, allowing sponsors and some leveraged corporates to use the bond market to replace ageing, and sometimes tight-to-test, loan financings. The popularity of such structures and the arrival of new institutional players i ...
Hedging with Interest-Rate Forward Contracts
... are quoted in points, with each point equal to $1,000, and the smallest change in price is one thirty-second of a point ($31.25). This contract specifies that the bonds to be delivered must have at least fifteen years to maturity at the delivery date (and must also not be callable—that is, redeemabl ...
... are quoted in points, with each point equal to $1,000, and the smallest change in price is one thirty-second of a point ($31.25). This contract specifies that the bonds to be delivered must have at least fifteen years to maturity at the delivery date (and must also not be callable—that is, redeemabl ...
Managing Financial Crisis in an Interconnected World
... to fundamental changes in the real economy. Not only have we seen increased trade flows, these flows have also been driven by the emergence of global supply chains. Over the years, businesses have divided their production into specialized segments which are outsourced to other local or international ...
... to fundamental changes in the real economy. Not only have we seen increased trade flows, these flows have also been driven by the emergence of global supply chains. Over the years, businesses have divided their production into specialized segments which are outsourced to other local or international ...
Systemic Risk in Hedge Funds
... leaded to the collapse of Amaranth Advisors LLC. The reason why the Amaranth-case will be discussed and not the Long Term Capital Market case from August 1998, is that the Amaranth-case is more recent and less described by researchers. This case study will answer why the collapse of a hedge fund wit ...
... leaded to the collapse of Amaranth Advisors LLC. The reason why the Amaranth-case will be discussed and not the Long Term Capital Market case from August 1998, is that the Amaranth-case is more recent and less described by researchers. This case study will answer why the collapse of a hedge fund wit ...
Download paper (PDF)
... as “precedent transactions analysis”). Interestingly, the active role of financial markets implies that any factor that influences prices can also influence takeover activity (and other real actions). Therefore, mispricing (e.g. due to market frictions or investor errors) can have real consequences ...
... as “precedent transactions analysis”). Interestingly, the active role of financial markets implies that any factor that influences prices can also influence takeover activity (and other real actions). Therefore, mispricing (e.g. due to market frictions or investor errors) can have real consequences ...
United States housing bubble
The United States housing bubble was an economic bubble affecting many parts of the United States housing market in over half of American states. Housing prices peaked in early 2006, started to decline in 2006 and 2007, and reached new lows in 2012. On December 30, 2008, the Case-Shiller home price index reported its largest price drop in its history. The credit crisis resulting from the bursting of the housing bubble is—according to general consensus—the primary cause of the 2007–2009 recession in the United States.Increased foreclosure rates in 2006–2007 among U.S. homeowners led to a crisis in August 2008 for the subprime, Alt-A, collateralized debt obligation (CDO), mortgage, credit, hedge fund, and foreign bank markets. In October 2007, the U.S. Secretary of the Treasury called the bursting housing bubble ""the most significant risk to our economy.""Any collapse of the U.S. housing bubble has a direct impact not only on home valuations, but the nation's mortgage markets, home builders, real estate, home supply retail outlets, Wall Street hedge funds held by large institutional investors, and foreign banks, increasing the risk of a nationwide recession. Concerns about the impact of the collapsing housing and credit markets on the larger U.S. economy caused President George W. Bush and the Chairman of the Federal Reserve Ben Bernanke to announce a limited bailout of the U.S. housing market for homeowners who were unable to pay their mortgage debts.In 2008 alone, the United States government allocated over $900 billion to special loans and rescues related to the U.S. housing bubble, with over half going to Fannie Mae and Freddie Mac (both of which are government-sponsored enterprises) as well as the Federal Housing Administration. On December 24, 2009, the Treasury Department made an unprecedented announcement that it would be providing Fannie Mae and Freddie Mac unlimited financial support for the next three years despite acknowledging losses in excess of $400 billion so far. The Treasury has been criticized for encroaching on spending powers that are enumerated for Congress alone by the United States Constitution, and for violating limits imposed by the Housing and Economic Recovery Act of 2008.