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munichre-071415 - Insurance Information Institute
munichre-071415 - Insurance Information Institute

... flooding in Houston and Texas Hill Country  Eastern U.S. experienced second winter of brutal cold/snow; damage estimated to exceed $2.9 billion, a new record (in terms of original loss dollars)  Severe thunderstorm events caused estimated $5.1 billion in insured loss, lowest ...
The American Mortgage in Historical and International Context
The American Mortgage in Historical and International Context

... evolution. The U.S. mortgage before the 1930s would be nearly unrecognizable today: it featured variable interest rates, high down payments and short maturities. Before the Great Depression, homeowners typically renegotiated their loans every year. We next compare the form of U.S. home mortgages tod ...
Credit Scoring Development and Methods
Credit Scoring Development and Methods

... Better prediction of credit losses Management ability to react to changes fast & accurately Ability to measure & forecast impact of policy decisions Quick and uniform policy implementation ...
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Country risk, country risk indices, and valuation of FDI: A real options

... The variables or parameters in a valuation model may be related to the OHYHO of the index, either the present or future level, or to the future SDWK of the index. Consider the case where an investment may be expropriated. The probability of expropriation during the lifetime of the project may be di ...
Challenging traditional attitudes towards investment risk and
Challenging traditional attitudes towards investment risk and

... Longevity Risk – This is the risk of outliving savings. As generation upon generation lives progressively longer, this risk becomes more of a threat. This risk can be reduced by accumulating a bigger pot: either by saving more or by investing in assets that generate better returns – or a combination ...
here - EBS
here - EBS

... interest rates. This list may change over time due to reasons both within and outside of our control. If this happens, we will tell you about the change as soon as possible and publish an updated variable rate policy statement on our website. How do we make decisions when setting variable interest r ...
Understanding the global financial crisis
Understanding the global financial crisis

... Beyond any doubt, financial innovations such as credit cards, Automatic Teller Machines (ATMs) and automated underwriting systems helped open new possibilities for many consumers. But financial innovation cannot be axiomatically qualified as desirable. The recent crisis has shown that there are econ ...
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Insurance-Linked Securities: A Primer
Insurance-Linked Securities: A Primer

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Royal London Sterling Extra Yield Bond Fund
Royal London Sterling Extra Yield Bond Fund

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Quantifying the Value of Implicit Government Guarantees for Large
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... This “Too-Big-to-Fail” (TBTF) conundrum, as confirmed by governments’ actions during the recent financial crisis, is real. Government support, even when implicit, has costs and consequences. It is important to understand them. Part of these government guarantees’ costs may represent value transfer f ...
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... 2. 2. Or if there is a security priced differently in two markets, a long position in the cheaper market financed by a short position in the more expensive market will lead to a profit as long as the position can be offset each other in the future ...
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... • European lessons for rest of the world • Don’t allow excessive intra–region imbalances • Don’t disconnect banking regulations from overall economic policy • Address non–performance and bank failures ...
Extraneous Risk: Pricing of Non-Systematic Risk
Extraneous Risk: Pricing of Non-Systematic Risk

... In this study, we explore a simple asset pricing model in a complete financial market in order to price non-systematic risk in the aggregate. In usual, a conventional complete market asset pricing model does not allow the pricing of non-systematic risk in equilibrium due to the diversification. Ther ...
Religious Activity, Risk Taking Preferences, and Financial Behaviour
Religious Activity, Risk Taking Preferences, and Financial Behaviour

... different religious traditions. Only non-religious people are willing to face more risk with respect to financial investments than Protestants. Focusing on Catholics and Protestants in the Netherlands, Renneboog and Spaenjers (2012) looked at the effect of religious affiliation on both economic att ...
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IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X.

... Indian insurance industry structure Insurance serves a number of valuable economic functions that are largely distinct from other types of financial intermediaries. In order to highlight specifically the unique attributes of insurance, it is worth focusing on those services that are not provided by ...
Ch7 Portf theory sols 12ed
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Mortgage Choice Determinants: The Role of Risk and Bank
Mortgage Choice Determinants: The Role of Risk and Bank

... in a more careful examination of its institutional structures. The comparison of mortgage products across countries is complex in that variable-rate mortgage products are not homogeneous across countries. For example, in the U.S. adjustable-rate mortgages (ARMs) have periodic rate adjustments (hybri ...
Portfolio Theory - University of Toronto
Portfolio Theory - University of Toronto

... Prior to Markowitz's work, investors focused on assessing the risks and rewards of individual securities in constructing their portfolios. Standard investment advice was to identify those securities that offered the best opportunities for gain with the least risk and then construct a portfolio from ...
competition and stability in banking
competition and stability in banking

... securitization, risk management), and proprietary trading. In a financial conglomerate we can distinguish a retail bank, an investment or corporate bank, asset management, proprietary trading, and insurance. The infamous model of “originate and distribute” banking, where banks try to get rid of cred ...
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Moral hazard

In economics, moral hazard occurs when one person takes more risks because someone else bears the burden of those risks. A moral hazard may occur where the actions of one party may change to the detriment of another after a financial transaction has taken place.Moral hazard occurs under a type of information asymmetry where the risk-taking party to a transaction knows more about its intentions than the party paying the consequences of the risk. More broadly, moral hazard occurs when the party with more information about its actions or intentions has a tendency or incentive to behave inappropriately from the perspective of the party with less information.Moral hazard also arises in a principal–agent problem, where one party, called an agent, acts on behalf of another party, called the principal. The agent usually has more information about his or her actions or intentions than the principal does, because the principal usually cannot completely monitor the agent. The agent may have an incentive to act inappropriately (from the viewpoint of the principal) if the interests of the agent and the principal are not aligned.
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