Understanding Counterparty Risk on Total Return
... additional units of the ETF. However it differs in that there are no taxable distributions and the value is reflected in a higher NAV per unit rather than more ETF Units. For investors, the benefits of being invested in this type of ETF are the immediate compounding of total returns and the potentia ...
... additional units of the ETF. However it differs in that there are no taxable distributions and the value is reflected in a higher NAV per unit rather than more ETF Units. For investors, the benefits of being invested in this type of ETF are the immediate compounding of total returns and the potentia ...
notes to the financial statements
... that will enhance corporate governance in the company. These policies form the core of the company and ensure that there is proper ethics, transparency and accountability in the conduct of business. COMPOSITION The Board has members with diverse skills, experience and professional background. It con ...
... that will enhance corporate governance in the company. These policies form the core of the company and ensure that there is proper ethics, transparency and accountability in the conduct of business. COMPOSITION The Board has members with diverse skills, experience and professional background. It con ...
Guidelines to Emerging Market Regulators
... towards a much more comprehensive approach designed to ensure proper management of all the risks associated with complex institutions. This evolving market scenario combined with the need for better allocation of limited supervisory resources, prompted regulators to find improved methods of identify ...
... towards a much more comprehensive approach designed to ensure proper management of all the risks associated with complex institutions. This evolving market scenario combined with the need for better allocation of limited supervisory resources, prompted regulators to find improved methods of identify ...
The Determinants of Corporate Bond Yield Spreads in
... once the sovereign of their incorporation had defaulted. This historical regularity was used by all major rating agencies to justify their “country (or sovereign) ceiling policy”, which usually meant that the debt of a company in a given country could not be rated higher than the debt of its governm ...
... once the sovereign of their incorporation had defaulted. This historical regularity was used by all major rating agencies to justify their “country (or sovereign) ceiling policy”, which usually meant that the debt of a company in a given country could not be rated higher than the debt of its governm ...
Pricing of Corporate Loan : Credit Risk and Liquidity cost
... credit risk, the liquidity cost and the embedded prepayment option. When a firm needs money it can turn to its bank which lends it against e.g., periodic payments in a form of a loan. A loan contract issued by a bank for its corporate clients is a financial agreement that often comes with more flexi ...
... credit risk, the liquidity cost and the embedded prepayment option. When a firm needs money it can turn to its bank which lends it against e.g., periodic payments in a form of a loan. A loan contract issued by a bank for its corporate clients is a financial agreement that often comes with more flexi ...
NBER WORKING PAPER SERIES PRICE Nicolae Gârleanu
... can be difficult to sell. Further, to get credit exposure through a corporate bond, one must actually buy the bond for cash and try to fund it using a repo, which uses a broker’s balance sheet, while a CDS is an “unfunded” derivative with zero net present value, so the margin is only necessary to li ...
... can be difficult to sell. Further, to get credit exposure through a corporate bond, one must actually buy the bond for cash and try to fund it using a repo, which uses a broker’s balance sheet, while a CDS is an “unfunded” derivative with zero net present value, so the margin is only necessary to li ...
Reinsurance
... Even so, of critical concern because of its importance to the stability and growth of insurance markets Further, the market internationally dominated by a relatively small number of very large reinsurers ...
... Even so, of critical concern because of its importance to the stability and growth of insurance markets Further, the market internationally dominated by a relatively small number of very large reinsurers ...
Capital Adequacy Ratio Report
... maintaining a leading position in the domestic market in the commercial banking sector. ...
... maintaining a leading position in the domestic market in the commercial banking sector. ...
Design of Financial Securities: Empirical Evidence from Private-label RMBS Deals
... Some have argued that the equity tranche lost its signaling role during the pre-crisis period because deal sponsors are free to sell them to other entities. Our empirical tests provide evidence contradicting these claims. While we cannot track the ownership of the equity tranche over time directly, ...
... Some have argued that the equity tranche lost its signaling role during the pre-crisis period because deal sponsors are free to sell them to other entities. Our empirical tests provide evidence contradicting these claims. While we cannot track the ownership of the equity tranche over time directly, ...
A Model of Capital and Crises Zhiguo He Arvind Krishnamurthy May 2011
... continuation utility, or a low “inside” stake in the project. Then, because of limited liability, the principal …nds it harder to provide incentives for the agent to exert e¤ort, resulting in a more severe agency friction. In our model, we restrict attention to short-term contracts. Nevertheless, ou ...
... continuation utility, or a low “inside” stake in the project. Then, because of limited liability, the principal …nds it harder to provide incentives for the agent to exert e¤ort, resulting in a more severe agency friction. In our model, we restrict attention to short-term contracts. Nevertheless, ou ...
Risk and Capital Management
... a lesser degree, the Group assumes option risks. During periods with high market volatility, positions involving market risk are reduced to the extent necessary for the stated VaR to remain within an acceptable level. ...
... a lesser degree, the Group assumes option risks. During periods with high market volatility, positions involving market risk are reduced to the extent necessary for the stated VaR to remain within an acceptable level. ...
Market Risk, Mortality Risk, and Sustainable Retirement
... Asset Allocation: A Downside Risk Perspective ...
... Asset Allocation: A Downside Risk Perspective ...
Disappointment Aversion in Asset Allocation
... are 2.33 (0.31), 1.85 (0.20) and 1.59 (0.14), respectively. As predicted by the analytical results, DA is larger for equities whose expected returns are larger than those of the other risky assets. The large DA in equities could be a potential source of the equity premium puzzle which is not well ex ...
... are 2.33 (0.31), 1.85 (0.20) and 1.59 (0.14), respectively. As predicted by the analytical results, DA is larger for equities whose expected returns are larger than those of the other risky assets. The large DA in equities could be a potential source of the equity premium puzzle which is not well ex ...
NBER WORKING PAPER SERIES CAPITAL STRUCTURE WITH RISKY FOREIGN INVESTMENT Mihir A. Desai
... extend beyond financing decisions to operational decisions. Multinational firms serving politically risky foreign markets are more likely to share ownership with local partners and to serve customers through exports from the United States rather than produce locally. Multinational firms alter both f ...
... extend beyond financing decisions to operational decisions. Multinational firms serving politically risky foreign markets are more likely to share ownership with local partners and to serve customers through exports from the United States rather than produce locally. Multinational firms alter both f ...
Kingdom of Bahrain: Financial System Stability Assessment
... Nonetheless, the authorities must be vigilant with respect to emerging risks. Favorable liquidity conditions have caused regional equity and real estate markets to surge. Consumer lending has grown rapidly, although it slowed in 2005 following a tightening of loan to income limits. Possible regional ...
... Nonetheless, the authorities must be vigilant with respect to emerging risks. Favorable liquidity conditions have caused regional equity and real estate markets to surge. Consumer lending has grown rapidly, although it slowed in 2005 following a tightening of loan to income limits. Possible regional ...
contents - Wrexham County Borough Council
... 2.2.1 The figures in Table 1 below demonstrate an overall percentage reduction of 29.31% in the number of Buildings at Risk and a 27.33% reduction in the number of vulnerable buildings between 2002, when the initial listed building survey was undertaken, and 2011. This is further demonstrated in fig ...
... 2.2.1 The figures in Table 1 below demonstrate an overall percentage reduction of 29.31% in the number of Buildings at Risk and a 27.33% reduction in the number of vulnerable buildings between 2002, when the initial listed building survey was undertaken, and 2011. This is further demonstrated in fig ...
Information Asymmetry and Discretionary Accounting in
... and thus generate a lower cost of capital. Secondly, from an alternative view, managers are able to use discretionary accounting choices to serve personal objectives at the expense of misleading outsiders. From this perspective, managerial discretion serves as a source of information risk that might ...
... and thus generate a lower cost of capital. Secondly, from an alternative view, managers are able to use discretionary accounting choices to serve personal objectives at the expense of misleading outsiders. From this perspective, managerial discretion serves as a source of information risk that might ...
Pension plan funding, risk sharing and technology choice
... the plan sponsor issues risky debt, then in the event of default, if the pension plan is not fully funded (or insured), this shortfall risk is borne by the plan members. We show that when capital market constraints on workers are binding, leveraging the risky technology, even with risky debt, raise ...
... the plan sponsor issues risky debt, then in the event of default, if the pension plan is not fully funded (or insured), this shortfall risk is borne by the plan members. We show that when capital market constraints on workers are binding, leveraging the risky technology, even with risky debt, raise ...
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 ...
Heterogeneity and Portfolio Choice: Theory and
... observations, it is useful to look for empirical regularities in the way that households with different characteristics invest their savings, and to interpret these regularities using theories of portfolio choice that allow heterogeneity among investors. In this paper, we summarize and add to the ev ...
... observations, it is useful to look for empirical regularities in the way that households with different characteristics invest their savings, and to interpret these regularities using theories of portfolio choice that allow heterogeneity among investors. In this paper, we summarize and add to the ev ...
Belief Regimes and Sovereign Debt Crises
... An important question is whether debt crises are associated with domestic fundamentals. Table 2 reports a generally negative correlation between the change in spreads and output. However, this statistic masks surprising heterogeneity across crisis episodes. Figure 1 depicts the density of GDP growth ...
... An important question is whether debt crises are associated with domestic fundamentals. Table 2 reports a generally negative correlation between the change in spreads and output. However, this statistic masks surprising heterogeneity across crisis episodes. Figure 1 depicts the density of GDP growth ...
(2005). “Deposit insurance and financial crises: Investigation
... Detragiache (2002) use the two-stage logit model while the earlier papers mentioned above include only the first year of each crisis as crisis years, and the deposit insurance variable is lagged one year. More recent papers like Eichengreen and Arteta (2002), Barth, et al. (2004) and Hoggarth et al ...
... Detragiache (2002) use the two-stage logit model while the earlier papers mentioned above include only the first year of each crisis as crisis years, and the deposit insurance variable is lagged one year. More recent papers like Eichengreen and Arteta (2002), Barth, et al. (2004) and Hoggarth et al ...
Risk and De-Collectivisation in the Czech Republic Dirk
... fundamentals: private property, free initiative and liberalised prices. … The basic process of agriculture’s transition toward a market economy is the establishment of private ownership and of the family peasant farm.” (Gavrilescu on Romania in Swinnen, 1994:178). Also more recently, Lerman (2000:10 ...
... fundamentals: private property, free initiative and liberalised prices. … The basic process of agriculture’s transition toward a market economy is the establishment of private ownership and of the family peasant farm.” (Gavrilescu on Romania in Swinnen, 1994:178). Also more recently, Lerman (2000:10 ...
Methods of Loan Guarantee Valuation and Accounting
... incentive to drive carefully. Similarly, the World Bank’s guarantee, covers only a portion of the risks, leaving intact incentives for the private parties to contain and manage commercial risks. Risks due to adverse selection, or the inability of lenders to distinguish between good and bad risks, le ...
... incentive to drive carefully. Similarly, the World Bank’s guarantee, covers only a portion of the risks, leaving intact incentives for the private parties to contain and manage commercial risks. Risks due to adverse selection, or the inability of lenders to distinguish between good and bad risks, le ...
Annual Report
... We wish to enter into a dialogue, listen to what members of society are saying and clearly explain what we are doing and why. For instance, we think it’s important that our policy of responsible and sustainable investment is successfully combined with achieving a favourable return. Explaining this s ...
... We wish to enter into a dialogue, listen to what members of society are saying and clearly explain what we are doing and why. For instance, we think it’s important that our policy of responsible and sustainable investment is successfully combined with achieving a favourable return. Explaining this s ...