Risk Perceptions, Directional Goals and the Link between Risk and
... Investors face a variety of risks when deciding whether, and how much, to invest in a given firm (e.g., market risk, liquidity risk, business risk, exchange rate risk, etc.). Since many of these sources of risk are directly or indirectly discussed in firms’ financial reports, investors also face the ...
... Investors face a variety of risks when deciding whether, and how much, to invest in a given firm (e.g., market risk, liquidity risk, business risk, exchange rate risk, etc.). Since many of these sources of risk are directly or indirectly discussed in firms’ financial reports, investors also face the ...
Version: March 14, 1999 - Duke University`s Fuqua School of Business
... There are many methods to estimate the equity risk premium and we can not tell which method is the best – because the variable of interest is fundamentally unobservable. The average of past returns is the method with the longest tradition. However, there are other time-series methods that use measur ...
... There are many methods to estimate the equity risk premium and we can not tell which method is the best – because the variable of interest is fundamentally unobservable. The average of past returns is the method with the longest tradition. However, there are other time-series methods that use measur ...
AMP Capital Understanding Infrastructure – a reference guide
... pipeline). Under the toll model, the risk that the asset is not fully utilised is held by the owner and as such, a fall in usage will negatively impact the investment return. Availability linked assets are not impacted by throughput, with the owner receiving a fixed amount irrespective of how much t ...
... pipeline). Under the toll model, the risk that the asset is not fully utilised is held by the owner and as such, a fall in usage will negatively impact the investment return. Availability linked assets are not impacted by throughput, with the owner receiving a fixed amount irrespective of how much t ...
Report on Internal Control 2013 - Autorité de contrôle prudentiel et
... investigations conducted by the inspection unit of the parent entity and by external institutions (external agencies, etc.), summaries of their main conclusions, and details on the decisions taken to correct any identified shortcomings. ...
... investigations conducted by the inspection unit of the parent entity and by external institutions (external agencies, etc.), summaries of their main conclusions, and details on the decisions taken to correct any identified shortcomings. ...
Lehman Brothers Bankruptcy B - Risk Limits and Stress Tests
... During 2007, as the real estate crisis worsened, Lehman continued to pursue deals without the benefit of key risk metrics. By late 2007, because of its concentration in real estate assets and external developments, Lehman found it harder and more expensive to access funding. In March 2008, after the ...
... During 2007, as the real estate crisis worsened, Lehman continued to pursue deals without the benefit of key risk metrics. By late 2007, because of its concentration in real estate assets and external developments, Lehman found it harder and more expensive to access funding. In March 2008, after the ...
Housing, Mortgage Bailout Guarantees and the
... clear during the recent crisis). The absence of a significant risk premium for the GSE’s debt can be attributed to the then implicit government bailout guarantee these institutions enjoyed. Currently the GSE’s are explicitly backed by the US government and as a consequence enjoy lower borrowing cost ...
... clear during the recent crisis). The absence of a significant risk premium for the GSE’s debt can be attributed to the then implicit government bailout guarantee these institutions enjoyed. Currently the GSE’s are explicitly backed by the US government and as a consequence enjoy lower borrowing cost ...
Equilibrium in Securities Markets with Heterogeneous
... correlated with the stock’s price process. In other words, each investor’s income process contains an unhedgeable risk component. Our analysis is performed by first conjecturing the form of the equilibrium risk-free rate and of the equilibrium stock price, and then we solve for each investor’s optim ...
... correlated with the stock’s price process. In other words, each investor’s income process contains an unhedgeable risk component. Our analysis is performed by first conjecturing the form of the equilibrium risk-free rate and of the equilibrium stock price, and then we solve for each investor’s optim ...
The Role of Accounting in Colleges Increase the Credibility of Future
... The individual’s ability to perceive ethical issues are different in every situation. A social situation to react quickly to a person’s decision is a real reflection on the ethics of a situation. To clarify the reasons people act morally, then Flory et al (1992) in Leisch (2004) to formulate a varie ...
... The individual’s ability to perceive ethical issues are different in every situation. A social situation to react quickly to a person’s decision is a real reflection on the ethics of a situation. To clarify the reasons people act morally, then Flory et al (1992) in Leisch (2004) to formulate a varie ...
Capital efficiency and optimization Measured steps to achieve return
... True contribution to shareholder value can be captured only when all relevant costs are captured and attributed to the products or business lines from which they emanate. While banks have traditionally employed a cost of funds based approach for fund transfer pricing, it is now imperative to also ca ...
... True contribution to shareholder value can be captured only when all relevant costs are captured and attributed to the products or business lines from which they emanate. While banks have traditionally employed a cost of funds based approach for fund transfer pricing, it is now imperative to also ca ...
550.448 Financial Engineering and Structured Products
... Mortgage Contract Characteristics (Example) In recent years, floating and hybrid mortgages had become common. The yield curve had steepened, making these types of loans attractive (though long-term rates were low, shortterm rates were even lower). Borrowers were also thought to have become mor ...
... Mortgage Contract Characteristics (Example) In recent years, floating and hybrid mortgages had become common. The yield curve had steepened, making these types of loans attractive (though long-term rates were low, shortterm rates were even lower). Borrowers were also thought to have become mor ...
Assignment 10
... – Are pro rata or proportional but are different in that the retention is a dollar amount – Not all risks insured and requires a report of risks or bordereau and increases expense – Provides large line capacity – May have occurrence limit by reinsurer ...
... – Are pro rata or proportional but are different in that the retention is a dollar amount – Not all risks insured and requires a report of risks or bordereau and increases expense – Provides large line capacity – May have occurrence limit by reinsurer ...
Financial Amplification Mechanisms and the Federal Reserve`s
... against assets that can be pledged as security for the loan. The pledgable assets serve a dual capacity: as factors of production and as collateral. An initial productivity shock reduces the net worth of constrained firms resulting in lower investments and lower prices of pledgable collateral assets ...
... against assets that can be pledged as security for the loan. The pledgable assets serve a dual capacity: as factors of production and as collateral. An initial productivity shock reduces the net worth of constrained firms resulting in lower investments and lower prices of pledgable collateral assets ...
Financial Stability Reports - Federal Reserve Bank of Kansas City
... the financial sector. Examples include the build-up of excessive levels of debt or leverage in the household or corporate sectors, which could lead to stresses and defaults that would impair financial stability. Financial sector risks can stem from problems at individual firms, common practices or e ...
... the financial sector. Examples include the build-up of excessive levels of debt or leverage in the household or corporate sectors, which could lead to stresses and defaults that would impair financial stability. Financial sector risks can stem from problems at individual firms, common practices or e ...
PDP-Working Paper
... limited than in most other countries (IMF, 2011). In Canada, the government does not provide upfront subsidies to first-time or other buyers, subsidies to buyers through savings account contributions or through preferential fees, or subsidies to selected groups, such as The total value of CMHC’s mor ...
... limited than in most other countries (IMF, 2011). In Canada, the government does not provide upfront subsidies to first-time or other buyers, subsidies to buyers through savings account contributions or through preferential fees, or subsidies to selected groups, such as The total value of CMHC’s mor ...
Download paper (PDF)
... bubble is forming. For example, if there has never been a nationwide decline in nominal house prices, agents may extrapolate that house prices will also not decline in the future (extrapolative expectations). Market participants are especially prone to such extrapolative expectations if there is a l ...
... bubble is forming. For example, if there has never been a nationwide decline in nominal house prices, agents may extrapolate that house prices will also not decline in the future (extrapolative expectations). Market participants are especially prone to such extrapolative expectations if there is a l ...
discount rates
... Estimation uncertainty reflects the possibility that you could have the “wrong model” or estimated inputs incorrectly within this model. Economic uncertainty comes the fact that markets and economies can change over time and that even the best models will fail to capture these unexpected changes. ...
... Estimation uncertainty reflects the possibility that you could have the “wrong model” or estimated inputs incorrectly within this model. Economic uncertainty comes the fact that markets and economies can change over time and that even the best models will fail to capture these unexpected changes. ...
POSITION - Eurofinas and 32 others offer comments to the
... 2 A large component of the cost is determined by the costs imposed by regulations – such as capital requirements. 3 One example illustrates the deep inconsistencies amongst investments that exist in prudential treatment: a 30 year pool of European residential mortgages with 80% LTV will attract appr ...
... 2 A large component of the cost is determined by the costs imposed by regulations – such as capital requirements. 3 One example illustrates the deep inconsistencies amongst investments that exist in prudential treatment: a 30 year pool of European residential mortgages with 80% LTV will attract appr ...
Regulatory Capital Requirements for Microinsurance in the
... commonly underwrite group credit life, personal accident and supplemental motor vehicle insurance. Distribution is often through cooperatives, MBAs or rural banks. Agents are seldom involved in individual sales because the small commissions that would be generated are unattractive. In the past, some ...
... commonly underwrite group credit life, personal accident and supplemental motor vehicle insurance. Distribution is often through cooperatives, MBAs or rural banks. Agents are seldom involved in individual sales because the small commissions that would be generated are unattractive. In the past, some ...
Bubbles, Financial Crises, and Systemic Risk
... bubble is forming. For example, if there has never been a nationwide decline in nominal house prices, agents may extrapolate that house prices will also not decline in the future (extrapolative expectations). Market participants are especially prone to such extrapolative expectations if there is a l ...
... bubble is forming. For example, if there has never been a nationwide decline in nominal house prices, agents may extrapolate that house prices will also not decline in the future (extrapolative expectations). Market participants are especially prone to such extrapolative expectations if there is a l ...
the use of portfolio credit risk models in central banks
... reflect the usual market volatility and are not the result of changes in creditworthiness. This risk is known as spread risk. At other times, however, spreads may widen, for instance, in anticipation of a rating downgrade. This situation would clearly reflect credit risk. In practice, it is not alwa ...
... reflect the usual market volatility and are not the result of changes in creditworthiness. This risk is known as spread risk. At other times, however, spreads may widen, for instance, in anticipation of a rating downgrade. This situation would clearly reflect credit risk. In practice, it is not alwa ...
NBER WORKING PAPER SERIES BUBBLES, FINANCIAL CRISES, AND SYSTEMIC RISK Martin Oehmke
... bubble is forming. For example, if there has never been a nationwide decline in nominal house prices, agents may extrapolate that house prices will also not decline in the future (extrapolative expectations). Market participants are especially prone to such extrapolative expectations if there is a l ...
... bubble is forming. For example, if there has never been a nationwide decline in nominal house prices, agents may extrapolate that house prices will also not decline in the future (extrapolative expectations). Market participants are especially prone to such extrapolative expectations if there is a l ...
Paper - Statistical Modeling, Causal Inference, and Social Science
... common relative weighting, or "subjective probability distribution", over beliefs. It defines reasonableness as applying Bayes' rule to update their "prior" beliefs. Under these definitions, reasonable people evaluating the same evidence may disagree strongly if their priors substantially diverge. T ...
... common relative weighting, or "subjective probability distribution", over beliefs. It defines reasonableness as applying Bayes' rule to update their "prior" beliefs. Under these definitions, reasonable people evaluating the same evidence may disagree strongly if their priors substantially diverge. T ...
Risk-Adjusted Performance of Private Equity Investments
... well as the possibility of transferring risk to the lenders. The leverage risk usually changes over the holding period: being initially high, but subsequently diminishing due to debt redemption and increasing equity values. With knowledge of the equity betas over time, we can create a mimicking port ...
... well as the possibility of transferring risk to the lenders. The leverage risk usually changes over the holding period: being initially high, but subsequently diminishing due to debt redemption and increasing equity values. With knowledge of the equity betas over time, we can create a mimicking port ...
Auto LoAns - Center for Responsible Lending
... by buying used cars instead of new ones and holding onto their cars for longer periods of time. These choices, however, have made families who did enter the market even more vulnerable to abusive auto lending practices as the pressure to increase revenue per sale grew. Purchasing a car is a complica ...
... by buying used cars instead of new ones and holding onto their cars for longer periods of time. These choices, however, have made families who did enter the market even more vulnerable to abusive auto lending practices as the pressure to increase revenue per sale grew. Purchasing a car is a complica ...
When are consumer loans collateralized in emerging markets
... solving the asymmetric information problem can be divided into two main streams. First, collateral can be used as a signaling instrument providing banks with valuable information about the borrower’s quality that would not be available otherwise. High-quality borrowers who have private information ...
... solving the asymmetric information problem can be divided into two main streams. First, collateral can be used as a signaling instrument providing banks with valuable information about the borrower’s quality that would not be available otherwise. High-quality borrowers who have private information ...