EC381: Financial and Capital Markets
... liquidity transformation makes banks vulnerable to credit risk and losses of confidence. The reforms should address this fundamental weakness and therefore can include measures to increase capital or make capital more aligned with the risk or liquidity of the assets; measures to increase the liquidi ...
... liquidity transformation makes banks vulnerable to credit risk and losses of confidence. The reforms should address this fundamental weakness and therefore can include measures to increase capital or make capital more aligned with the risk or liquidity of the assets; measures to increase the liquidi ...
In general, equities have outperformed bonds this
... face value of the European corporate bond market had been on a downward trend in the 2010-2013 period. There has been a growth in euro denominated corporate debt since the beginning of 2014 but quite a lot of that has been from non-European issuers taking advantage of low borrowing costs. Releveragi ...
... face value of the European corporate bond market had been on a downward trend in the 2010-2013 period. There has been a growth in euro denominated corporate debt since the beginning of 2014 but quite a lot of that has been from non-European issuers taking advantage of low borrowing costs. Releveragi ...
a less than 1% probability of incurring defaults.
... deeming them safe investments even though many relied on high risk home loans. 1 In late 2006, high risk mortgages began incurring delinquencies and defaults at an alarming rate. Despite signs of a deteriorating mortgage market, Moody’s and S&P continued for six months to issue investment grade rati ...
... deeming them safe investments even though many relied on high risk home loans. 1 In late 2006, high risk mortgages began incurring delinquencies and defaults at an alarming rate. Despite signs of a deteriorating mortgage market, Moody’s and S&P continued for six months to issue investment grade rati ...
AFR Statement on SEC Final Rules Concerning Asset
... in the securities markets that helped to trigger the 2008 financial crisis. One rule sets out new controls designed to improve business practices at major credit rating firms such as Moody’s and Standard and Poors. Prior to the financial crisis, these firms certified tens of thousands of ‘toxic’ sec ...
... in the securities markets that helped to trigger the 2008 financial crisis. One rule sets out new controls designed to improve business practices at major credit rating firms such as Moody’s and Standard and Poors. Prior to the financial crisis, these firms certified tens of thousands of ‘toxic’ sec ...
Asset Bubbles, Inflation, and Agricultural Land Values
... Asset bubbles are more damaging if they are leveraged than if they are built on equity. The latest housing bubble, for example, was exacerbated with debt, that contributed to the severity of the bubble because as housing values fall, house mortgages go underwater, which forces more houses on the mar ...
... Asset bubbles are more damaging if they are leveraged than if they are built on equity. The latest housing bubble, for example, was exacerbated with debt, that contributed to the severity of the bubble because as housing values fall, house mortgages go underwater, which forces more houses on the mar ...
SPEECH BY DR ALAN BOLLARD, GOVERNOR, LOCAL GOVERNMENT NEW ZEALAND
... as far in this cycle as it did in the last one. There are a number of reasons for this, none of them individually definitive, but all pointing in the same direction: in brief the financial markets have already effectively tightened conditions as a result of more costly funding; the New Zealand priva ...
... as far in this cycle as it did in the last one. There are a number of reasons for this, none of them individually definitive, but all pointing in the same direction: in brief the financial markets have already effectively tightened conditions as a result of more costly funding; the New Zealand priva ...
Dar Al Arkan has a huge amount of land
... Real estate sector is one of the largest non-oil sectors in Saudi Arabia. It has 10% of Saudi Arabia's GDP. There are no official statistics for the trade volume in the real estate sector in Saudi Arabia, but some experts estimate its volume by more than 1.3 trillion S.R. There are some factors that ...
... Real estate sector is one of the largest non-oil sectors in Saudi Arabia. It has 10% of Saudi Arabia's GDP. There are no official statistics for the trade volume in the real estate sector in Saudi Arabia, but some experts estimate its volume by more than 1.3 trillion S.R. There are some factors that ...
November 2015 Update - Goodwin Securities, Inc.
... with our recent 1.5% growth in the third Quarter. The poor Federal Reserve has threatened us with higher rates for several years now and last September was the “for real” date; but, they have backed off, again. This economy is driving them mad: just enough growth to muddle along, but never enough sp ...
... with our recent 1.5% growth in the third Quarter. The poor Federal Reserve has threatened us with higher rates for several years now and last September was the “for real” date; but, they have backed off, again. This economy is driving them mad: just enough growth to muddle along, but never enough sp ...
Minutes from the meeting of the Financial Stability Council held on
... situation with a combination of sound economic growth and low interest rates. At the same time, the authorities see several vulnerabilities and risks in the Swedish financial system and for the Swedish economy. Structural factors, combined with the state of the economy, have given rise to imbalances ...
... situation with a combination of sound economic growth and low interest rates. At the same time, the authorities see several vulnerabilities and risks in the Swedish financial system and for the Swedish economy. Structural factors, combined with the state of the economy, have given rise to imbalances ...
Brava Stephanie Pomboy!
... household net-worth amassed since March 2009, financial assets accounted for $21 trillion (84%), and real estate accounts for just $3 trillion (12%). ...
... household net-worth amassed since March 2009, financial assets accounted for $21 trillion (84%), and real estate accounts for just $3 trillion (12%). ...
Mortgage-Related Securities
... The Government National Mortgage Association (GNMA or Ginnie Mae) is a wholly owned U.S. government corporation established in 1968. It is under the jurisdiction of the Department of Housing and Urban Development. Ginnie Mae guarantees mortgage-backed securities (groupings of mortgages that are reso ...
... The Government National Mortgage Association (GNMA or Ginnie Mae) is a wholly owned U.S. government corporation established in 1968. It is under the jurisdiction of the Department of Housing and Urban Development. Ginnie Mae guarantees mortgage-backed securities (groupings of mortgages that are reso ...
Eastern Caution, Western Ebullience and Global Imbalances
... consumption, and this will raise the price of non-traded goods; but this is something else – more like the gold-fever in California in the mid- nineteenth century3 . Famous New York investment banks become the centre of a credit cycle of epic proportions, where expanding mortgage finance helps raise ...
... consumption, and this will raise the price of non-traded goods; but this is something else – more like the gold-fever in California in the mid- nineteenth century3 . Famous New York investment banks become the centre of a credit cycle of epic proportions, where expanding mortgage finance helps raise ...
research paper series Research Paper 2008/32
... During the previous downturn in the early 1990s, the US average house price fell by 2.8% according to the S&P/Case-Shiller Home Price Index (Corkery and Hagerty, 2008). However, the price slide this time was substantially steeper and has lasted much longer. By November 2007, average US house prices ...
... During the previous downturn in the early 1990s, the US average house price fell by 2.8% according to the S&P/Case-Shiller Home Price Index (Corkery and Hagerty, 2008). However, the price slide this time was substantially steeper and has lasted much longer. By November 2007, average US house prices ...
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.