Credit cycles and systemic risk - Centre de Recerca en Economia
... and the agent (bank managers or shareholders). First, the basic agency problem stems from the fact that most financial intermediaries have limited liability (their losses are limited) and invest money on behalf of others (the final investors). Moreover, they are highly leveraged, notably banks that ...
... and the agent (bank managers or shareholders). First, the basic agency problem stems from the fact that most financial intermediaries have limited liability (their losses are limited) and invest money on behalf of others (the final investors). Moreover, they are highly leveraged, notably banks that ...
Discussion paper Transparency and liquidity
... 3% of mortgage-credit-bond transactions are on market places. Therefore, market makers play a central role in the current system as intermediaries for trading in mortgagecredit bonds. ...
... 3% of mortgage-credit-bond transactions are on market places. Therefore, market makers play a central role in the current system as intermediaries for trading in mortgagecredit bonds. ...
Sticker to Prospectus The Prospectus for ICON ECI Fund Fifteen
... A significant portion of the statistical data regarding the domestic equipment financing market’s performance is provided by the equipment financing divisions of commercial and industrial banks, large independent leasing and finance companies, and captive and vendor leasing and finance companies. T ...
... A significant portion of the statistical data regarding the domestic equipment financing market’s performance is provided by the equipment financing divisions of commercial and industrial banks, large independent leasing and finance companies, and captive and vendor leasing and finance companies. T ...
A Brief Postwar History of US Consumer Finance
... existed prior to World War II, some of the most popular investment innovations occurred in the postwar period. Those include money market funds (first offered in 1971), index funds (1976), index-linked CDs (1987) exchange-traded funds (1993) and a host of corporate securities aimed at retail invest ...
... existed prior to World War II, some of the most popular investment innovations occurred in the postwar period. Those include money market funds (first offered in 1971), index funds (1976), index-linked CDs (1987) exchange-traded funds (1993) and a host of corporate securities aimed at retail invest ...
- Backpack
... • If the issue is underpriced, the company stands to lose notionally since the securities will be sold at a price lower than its intrinsic value, resulting in lower realizations. ...
... • If the issue is underpriced, the company stands to lose notionally since the securities will be sold at a price lower than its intrinsic value, resulting in lower realizations. ...
Financial liberalization, market structure and credit
... costs after liberalization and by the fact that they operate with more efficient foreign banks. The remaining entrepreneurs who gain access to credit operate with domestic banks, which face relatively lower entrepreneurial rents than foreign banks. These entrepreneurs benefit from the lower costs of f ...
... costs after liberalization and by the fact that they operate with more efficient foreign banks. The remaining entrepreneurs who gain access to credit operate with domestic banks, which face relatively lower entrepreneurial rents than foreign banks. These entrepreneurs benefit from the lower costs of f ...
NBER WORKING PAPER SERIES ALL BANKS GREAT, SMALL, AND GLOBAL:
... the two types of financial openness yield very different impacts on interest rates, even in this case where they have little effect on aggregate outcomes. In our general equilibrium model, heterogeneous banks compete through their choice of interest rate to supply an identical product (loans). We def ...
... the two types of financial openness yield very different impacts on interest rates, even in this case where they have little effect on aggregate outcomes. In our general equilibrium model, heterogeneous banks compete through their choice of interest rate to supply an identical product (loans). We def ...
National Foreclosure Settlement
... debtors. This description does not say that. Ally will try to force the borrower into this option. Make sure to state that the payments are not sustainable for the borrower if that is true, in which case the borrower will be considered for the other options.. 2) Underwater with Credit Degradation, r ...
... debtors. This description does not say that. Ally will try to force the borrower into this option. Make sure to state that the payments are not sustainable for the borrower if that is true, in which case the borrower will be considered for the other options.. 2) Underwater with Credit Degradation, r ...
A Proposal to Limit the Anti-Competitive Power of Institutional Investors
... owners have financial interests related to the firm’s activities other than the profits will typically instruct firms to maximize outcomes other than profits. 9 Julio Rotemberg noted, in an unpublished and poorly remembered paper, that this trend might imply that the diversification, which investors ...
... owners have financial interests related to the firm’s activities other than the profits will typically instruct firms to maximize outcomes other than profits. 9 Julio Rotemberg noted, in an unpublished and poorly remembered paper, that this trend might imply that the diversification, which investors ...
Liquidity in an emerging bond market: the case of corporate bonds
... The dataset excludes transactions in securities issued by the Malaysian government and BNM. It also excludes money market instruments (ie debt securities with an original maturity of less than 364 days) and medium-term notes. Given the incomplete coverage of money markets in our dataset, we elimina ...
... The dataset excludes transactions in securities issued by the Malaysian government and BNM. It also excludes money market instruments (ie debt securities with an original maturity of less than 364 days) and medium-term notes. Given the incomplete coverage of money markets in our dataset, we elimina ...
Commercial real estate debt
... may be potentially captured through the Solvency II matching adjustment.1 In theory, directly originated CRE debt can be structured to meet the insurer’s requirements. However, in practice, the use of prescriptive mandates to meet regulatory requirements may restrict the volumes of CRE debt which ca ...
... may be potentially captured through the Solvency II matching adjustment.1 In theory, directly originated CRE debt can be structured to meet the insurer’s requirements. However, in practice, the use of prescriptive mandates to meet regulatory requirements may restrict the volumes of CRE debt which ca ...
Credit Derivative: Concept & Applications in the By
... The bank issues it because it wants to get its regulatory balance sheet and capital relief, and it wants to improve its capital adequacy ratios. The investor buys this type of deal to get exposure to asset classes that it can’t otherwise get exposure to. Arbitrage CDO The collateral is usually high- ...
... The bank issues it because it wants to get its regulatory balance sheet and capital relief, and it wants to improve its capital adequacy ratios. The investor buys this type of deal to get exposure to asset classes that it can’t otherwise get exposure to. Arbitrage CDO The collateral is usually high- ...
The constant asset allocation comparison
... strategic asset allocation. However, all of the excess return in all cases save one is attributed to the excess return prior to mid 2006, and in the one remaining case, that is true of the bulk of the excess return. We also discover that the asset composition of BF does not reflect the 7 year asset ...
... strategic asset allocation. However, all of the excess return in all cases save one is attributed to the excess return prior to mid 2006, and in the one remaining case, that is true of the bulk of the excess return. We also discover that the asset composition of BF does not reflect the 7 year asset ...
Access to Refinancing and Mortgage Interest Rates
... a PMI contract covering the down payment shortfall. In the immediate aftermath of the crisis, the PMI industry was reeling from huge losses, with several prominent companies ceasing writing new policies altogether. Moreover, as PMI coverage is typically capped at 15 percent of home value, PMI was ne ...
... a PMI contract covering the down payment shortfall. In the immediate aftermath of the crisis, the PMI industry was reeling from huge losses, with several prominent companies ceasing writing new policies altogether. Moreover, as PMI coverage is typically capped at 15 percent of home value, PMI was ne ...
Driving Growth: making the case for bigger and
... If European stockmarkets were the same depth as in the US relative to the size of the economy, they would be something like $6tn bigger. That’s an awful lot of IPOs. The same effect is on display in the corporate bond market, in which the combined value of bonds in the US is more than three times th ...
... If European stockmarkets were the same depth as in the US relative to the size of the economy, they would be something like $6tn bigger. That’s an awful lot of IPOs. The same effect is on display in the corporate bond market, in which the combined value of bonds in the US is more than three times th ...
Financial Market: May 2015
... USD/THB: Forming a bullish move this month; target 33.34-34.00 USD/THB moved in exciting direction after USD/THB had stayed flat and oscillating in range of 32.40-32.80 since January 2015. USD/THB skyrocketed to 33.00 at the end of April and it was able to sustain into the following days in May than ...
... USD/THB: Forming a bullish move this month; target 33.34-34.00 USD/THB moved in exciting direction after USD/THB had stayed flat and oscillating in range of 32.40-32.80 since January 2015. USD/THB skyrocketed to 33.00 at the end of April and it was able to sustain into the following days in May than ...
Market structures and systemic risks of exchange
... appetite change. For example, in the low global interest rate environment in 2002–03, structured credit products were marketed to gear up investment returns for institutional investors as the value of their liabilities increased; banks were also willing buyers as they offered higher returns to compa ...
... appetite change. For example, in the low global interest rate environment in 2002–03, structured credit products were marketed to gear up investment returns for institutional investors as the value of their liabilities increased; banks were also willing buyers as they offered higher returns to compa ...
Infrastructure Developments in the Market for Commonwealth Government Securities
... assists market participants to meet their settlement obligations in Commonwealth Government securities (CGS). Because short positions commonly arise as a result of normal trading activity, dealers who quote two-way prices in particular securities are sometimes left with insufficient CGS to settle co ...
... assists market participants to meet their settlement obligations in Commonwealth Government securities (CGS). Because short positions commonly arise as a result of normal trading activity, dealers who quote two-way prices in particular securities are sometimes left with insufficient CGS to settle co ...
SECURITIZATION AND MORAL HAZARD: EVIDENCE FROM A
... authors exploit what appears to be an ideal natural experiment—an exogenous cutoff rule used by securitizers. They argue that securitizers are reluctant to buy loans made to potential borrowers with FICO scores below 620, but are more willing to buy those made to borrowers with scores of 620 or abo ...
... authors exploit what appears to be an ideal natural experiment—an exogenous cutoff rule used by securitizers. They argue that securitizers are reluctant to buy loans made to potential borrowers with FICO scores below 620, but are more willing to buy those made to borrowers with scores of 620 or abo ...
Vanguard`s framework for constructing globally diversified portfolios
... objective. Another way to characterise this process is “fund collecting”: These investors are drawn to evaluate a particular fund and, if it seems attractive, they buy it — often without thinking about how or where it may fit within the overall allocation. Although paying close attention to each inv ...
... objective. Another way to characterise this process is “fund collecting”: These investors are drawn to evaluate a particular fund and, if it seems attractive, they buy it — often without thinking about how or where it may fit within the overall allocation. Although paying close attention to each inv ...
Chapter 17
... Example for Encumbrance Accounting: 1. Assume a purchase order is issued to purchase two sanitation trucks by the City of A.The estimated Cost is $45000 each. 2. The invoice is received for one to the trucks, at an actual cost of $44000. Assume that second truck is backordered. ...
... Example for Encumbrance Accounting: 1. Assume a purchase order is issued to purchase two sanitation trucks by the City of A.The estimated Cost is $45000 each. 2. The invoice is received for one to the trucks, at an actual cost of $44000. Assume that second truck is backordered. ...
Risk-taking behavior of Commodity Trading Advisors
... mon in the hedge fund databases. We include the graveyard database of defunct funds to account for survivorship bias and start the evaluation period in January 1994, the point at which the dataset begins to include defunct funds.8 The backfill and incubation biases arise from the voluntary nature o ...
... mon in the hedge fund databases. We include the graveyard database of defunct funds to account for survivorship bias and start the evaluation period in January 1994, the point at which the dataset begins to include defunct funds.8 The backfill and incubation biases arise from the voluntary nature o ...
Credit standards and financial institutions’ leverage ∗ Gilles Dufr´enot
... respectively. In good times, institutions are more optimistic about the future prospects of the economy, they increase their leverage and potentially invest in riskier projects, whose risk-return profile has improved. On average, this behavior can result in bigger losses in the future, a correction ...
... respectively. In good times, institutions are more optimistic about the future prospects of the economy, they increase their leverage and potentially invest in riskier projects, whose risk-return profile has improved. On average, this behavior can result in bigger losses in the future, a correction ...
Growth Strategies to Expand Role of Capital Market
... to mitigate illiquidity risks of investing in VC and PE assets. Efforts will also be made to promote greater PLC participation in seeding the formation of innovation-based companies or through providing greater support to the VC and PE industries. In this regard, collaborative initiatives will be id ...
... to mitigate illiquidity risks of investing in VC and PE assets. Efforts will also be made to promote greater PLC participation in seeding the formation of innovation-based companies or through providing greater support to the VC and PE industries. In this regard, collaborative initiatives will be id ...