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Alternative Risk Transfer, The Convergence of the Insurance and
Alternative Risk Transfer, The Convergence of the Insurance and

... (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae) introduced securities with multiple classes of credit rating to attract a wider breadth of investors with varying risk tolerance. Shortly after Freddie Mac and Fannie Mae entered the asset-backed security market, other financia ...
ImplementIng the natIonal Flood Insurance reForm act about the authors Howard Kunreuther, PhD
ImplementIng the natIonal Flood Insurance reForm act about the authors Howard Kunreuther, PhD

... designed to provide more accurate information on the nature of flood risk by improving the quality of publically available flood maps across the nation. It also phases in risk-based premiums for policyholders with second homes or homes subject to repetitive flooding. The transition period is 5 years ...
Main title Subtitle
Main title Subtitle

... exclusive use of the recipient. It does not constitute an offer or a recommendation to buy or sell financial instruments or banking services and does not release the recipient from exercising his/her own judgment. The recipient is in particular recommended to check that the information provided is i ...
Risk and Rates of Return
Risk and Rates of Return

... Relationship between Risk and Rates of Return Market risk premium = RPM = rM - rRF RPM = return associated with the riskiness of a portfolio that contains all the investments in the market RPM is based on how risk averse investors are on average Because an investment’s beta coefficient indicates vo ...
Commercial Mortgage-backed Securities: Prepayment and Default*
Commercial Mortgage-backed Securities: Prepayment and Default*

... focused on mortgage prepayment and default in residential mortgages while Ciochetti, Gau, and Yao [2000] focus on commercial mortgages. The Appendix presents a preliminary analysis of mortgage termination by examining the individual hazard rates of prepayment and default. Although the life-table met ...
FNSASIC301A
FNSASIC301A

... The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that will affect performance. The following variables may be present with training and assessment depending on the work situation, needs of the candidate, accessibility of the i ...
Full Text PDF - Great Cities Institute
Full Text PDF - Great Cities Institute

... transactions, and the affirmative obligation of banks to meet the credit needs of the neighborhoods where they do business (Taibi, 1994). Whereas there have been widely varying assessments as to the effectiveness of these rules, they nonetheless articulated a set of remedies to the practices of neig ...
November 18, 2010 Ms. Jane Pearse Director, Financial
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... The current Insurance Business (Bank and Bank Holding Companies) Regulations were drafted in the early 1990’s when on-line commerce was in its relative infancy. Since that time, there has been a vast increase in the use of on-line technology to conduct business and a huge increase in the use of the ...
EMBA Corporate Finance - Home Page of Dr. Rodney Boehme
EMBA Corporate Finance - Home Page of Dr. Rodney Boehme

... Systematic (market or macroeconomic) risk usually accounts for about 25% of a typical stock’s total risk. Firm-specific risk usually accounts for about 75% of a typical firm’s total risk. You can eliminate almost all the firm-specific risk by holding a well-diversified portfolio of stocks. The rando ...
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Credit Derivative: Concept & Applications in the By

... increasing intra-industry competition as well as more intensive competition from other financial institutions such as banks and mutual funds. In response, insurers have developed a number of increasingly complex products and at the same time have had to reduce the profit loadings in these products t ...
Risk Management and Financial Institutions
Risk Management and Financial Institutions

... To avoid too many numbers being produced one possibility is consider only i = j Another is to consider only parallel shifts in the yield curve and calculate convexity Another is to consider the first two or three types of shift given by a principal components analysis ...
Seeing Beyond the Tragedy of Horizons
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... Both the outcome of the election and the possibility of policy discontinuity are considered sources of uncertainty (Jensen & Schmith 2005) ...
financial services - Xavier Institute of Management
financial services - Xavier Institute of Management

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PHartmann_Paper1
PHartmann_Paper1

... would not be subject to contagion risk, but they tend to be costly for banks, which have to hold a lot of liquid funds that cannot be invested. Pure net settlement systems can be subject to extensive systemic risk, because the netting of different payments against each other and infrequent settlemen ...
ALLTERNATIVE METHODS TO OPERATIONAL RISK MANAGEMENT
ALLTERNATIVE METHODS TO OPERATIONAL RISK MANAGEMENT

... The Basel Committee offers a definition of operational risk as “the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events failures” [1]. Operational risk has become one of the most discussed topics by both academics and practitioners in the f ...
Property Rights and the Rise of the Western World
Property Rights and the Rise of the Western World

... mortgages made and sold nationally. One way or another, the GSEs will be reinvented since they are a fundamental part of the US financial system. They may be reconstituted as federal agencies. They will definitely not reappear as they were before. ...
FHLBank Investor Presentation
FHLBank Investor Presentation

... This is not an offer to sell. FHLBank debt is not an obligation of or guaranteed by the United States and may not be offered or sold in any jurisdiction requiring its registration. No recommendation is made concerning the securities described. Please refer to the offering documents before purchasin ...
Financial Services & Public Policy Alert  June 2009
Financial Services & Public Policy Alert June 2009

... In addition, the SEC would have clear authority to require robust, ongoing reporting by ABS issuers. Under current law, a registered offering of ABS triggers a reporting obligation, but the reporting obligation is normally suspended because of an exception in the law. Implementing the proposal may i ...
Introduction to Risk, Return and the Opportunity Cost of Capital
Introduction to Risk, Return and the Opportunity Cost of Capital

... Even with over 100 years of data, we can’t estimate the market risk premium; nor can we be sure that investors today are demanding the same reward for risk that they were 50 or 100 years ago. All this leaves plenty of room for arguments about what the risk premium really is. Some reasons why today’s ...
Full-Text PDF
Full-Text PDF

... The average medical cost in the economy is a∗all = (sps + (1 − s) ph ) L. Note that this value can increase because of increasing cost, L, or increasing probability of illness, p· . Suppose that the population is half sick and half healthy (s = 0.5). Furthermore, let L = 1200, and set the probabilit ...
Anti-money laundering and counter-terrorist financing seminar
Anti-money laundering and counter-terrorist financing seminar

... consideration of specific circumstances. Furthermore, it is not intended to cover all requirements that are applicable to you and your firm. Accordingly, it should not be regarded as a substitute for seeking detailed advice on any specific case from your own professional adviser. ...
Italy`s Property/Casualty Sector Carries A Moderate Insurance
Italy`s Property/Casualty Sector Carries A Moderate Insurance

... Most Italian insurers are large institutional investors in the domestic sovereign and the financial sector. In our opinion, they are consequently highly exposed to domestic sovereign credit risk and domestic financial market volatility, which has been higher than in most European countries in recent ...
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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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