Effects of the Simultaneous Holding of Equity and Debt by Non
... to 32 bps) as compared to other loans funded by the same group of lenders who are not shareholders of the borrower. The negative relation remains in the presence of firm fixed effects, and is, therefore, not driven by firm-specific heterogeneity. These results are consistent with both the incentive ...
... to 32 bps) as compared to other loans funded by the same group of lenders who are not shareholders of the borrower. The negative relation remains in the presence of firm fixed effects, and is, therefore, not driven by firm-specific heterogeneity. These results are consistent with both the incentive ...
How to note: Managing fiduciary risk when providing
... 2. A standard FRA evaluating the national PFM system is mandatory where Financial Aid is being provided or considered. It will also be useful in countries where financial aid is not yet being considered, as it can help in monitoring partner government’s PFM reforms and provide a basis for dialogue o ...
... 2. A standard FRA evaluating the national PFM system is mandatory where Financial Aid is being provided or considered. It will also be useful in countries where financial aid is not yet being considered, as it can help in monitoring partner government’s PFM reforms and provide a basis for dialogue o ...
How Much Diversification is Enough
... The pyramid structure of behavioral portfolios is also reflected in the upside-potential and downside-protection layers of “core and satellite” portfolios. Pietranico and Riepe (2002) described Charles Schwab and Company’s version of core and satellite (called “Core and Explore”) as comprising a wel ...
... The pyramid structure of behavioral portfolios is also reflected in the upside-potential and downside-protection layers of “core and satellite” portfolios. Pietranico and Riepe (2002) described Charles Schwab and Company’s version of core and satellite (called “Core and Explore”) as comprising a wel ...
Anno Stolper: The Appeal of Risky Assets
... know about the risks in their portfolio; otherwise, it has been argued, they would not have invested in such risky assets. We argue, however, that fund managers might have known about the risks and invested in the risky assets nonetheless. We suggest that it might even have been individually optimal ...
... know about the risks in their portfolio; otherwise, it has been argued, they would not have invested in such risky assets. We argue, however, that fund managers might have known about the risks and invested in the risky assets nonetheless. We suggest that it might even have been individually optimal ...
Client Investing Guide
... • The period of time over which you wish to invest (time horizon): If you are seeking to invest over a longer period of time, you may be able to take a greater level of risk as you are more likely to be able to ride out short-term investment losses. • The amount of time before you expect to retire ...
... • The period of time over which you wish to invest (time horizon): If you are seeking to invest over a longer period of time, you may be able to take a greater level of risk as you are more likely to be able to ride out short-term investment losses. • The amount of time before you expect to retire ...
Shareholder Assessment of Bond Fund Risk Ratings
... survey a randomly selected sample of current mutual fund shareholders on their views of bond fund risk ratings. The survey participants included shareholders who owned equity and bond funds as well as those owning money market funds. Most of the respondents were seasoned fund investors who had long- ...
... survey a randomly selected sample of current mutual fund shareholders on their views of bond fund risk ratings. The survey participants included shareholders who owned equity and bond funds as well as those owning money market funds. Most of the respondents were seasoned fund investors who had long- ...
Regulatory Capital Requirements under FTK and
... In the Netherlands, it is obligatory to participate in a pension scheme in case it is provided by the employer. Since employees are obliged to invest part of their salary in a pension scheme, it is important that there is good supervision. The legislation for pension funds is embedded in the Financi ...
... In the Netherlands, it is obligatory to participate in a pension scheme in case it is provided by the employer. Since employees are obliged to invest part of their salary in a pension scheme, it is important that there is good supervision. The legislation for pension funds is embedded in the Financi ...
The incentive structure of the originate-to
... face higher costs or liquidity constraints. Furthermore, the whole sample is divided into small and large banks based on the value of total assets. Our results are consistent with the regulatory arbitrage hypothesis and indicate that small banks seek to use the OTD model of lending to alleviate cap ...
... face higher costs or liquidity constraints. Furthermore, the whole sample is divided into small and large banks based on the value of total assets. Our results are consistent with the regulatory arbitrage hypothesis and indicate that small banks seek to use the OTD model of lending to alleviate cap ...
Financial Optimization Problems in Life and Pension Insurance
... they manage their policies? How should the systematic surplus that typically emerges over the policy terms (due to the prudent assessment of future interest rates) be redistributed to the policyholder(s)? What criteria should be imposed to ensure that policies are fair ? What happens if the actual y ...
... they manage their policies? How should the systematic surplus that typically emerges over the policy terms (due to the prudent assessment of future interest rates) be redistributed to the policyholder(s)? What criteria should be imposed to ensure that policies are fair ? What happens if the actual y ...
The Capital Asset Pricing Model
... σM measures the equilibrium price of risk: the expected return that each investor gives up when he or she adjusts his or her total portfolio to reduce risk. ...
... σM measures the equilibrium price of risk: the expected return that each investor gives up when he or she adjusts his or her total portfolio to reduce risk. ...
Saving Your Home in Bankruptcy
... rental housing. If debtors default but do not file for bankruptcy, then mortgage lenders are assumed to foreclose and debtors relocate to rental housing. Assume that debtors’ relocation cost is L and that rental housing costs R per year. Lenders’ cost of foreclosure is denoted C f . Mortgages are a ...
... rental housing. If debtors default but do not file for bankruptcy, then mortgage lenders are assumed to foreclose and debtors relocate to rental housing. Assume that debtors’ relocation cost is L and that rental housing costs R per year. Lenders’ cost of foreclosure is denoted C f . Mortgages are a ...
Thematic Review on Deposit Insurance Systems
... practices by FSB members in a number of areas covered by the Core Principles, which can serve as useful references to other deposit insurers. At the same time, however, there remain some areas where there appear to be divergences from, or inconsistencies with, the Core Principles that need more time ...
... practices by FSB members in a number of areas covered by the Core Principles, which can serve as useful references to other deposit insurers. At the same time, however, there remain some areas where there appear to be divergences from, or inconsistencies with, the Core Principles that need more time ...
Household Portfolios in Italy
... 1995 and 1998 – has collected detailed information on the composition of Italian households’ wealth, both real and financial. But the 1987 survey has information only on highly aggregated asset categories, and the framing of the questions on financial assets was rather different from that of subsequ ...
... 1995 and 1998 – has collected detailed information on the composition of Italian households’ wealth, both real and financial. But the 1987 survey has information only on highly aggregated asset categories, and the framing of the questions on financial assets was rather different from that of subsequ ...
Unresolved Issues in Modeling Credit Risky Assets
... value of the portfolio in a given state of nature, implying that we must have a valuation model that can price the different types of credit sensitive instruments in the portfolio. The second step involves describing the probability distribution of portfolio values under the natural measure. For pri ...
... value of the portfolio in a given state of nature, implying that we must have a valuation model that can price the different types of credit sensitive instruments in the portfolio. The second step involves describing the probability distribution of portfolio values under the natural measure. For pri ...
Seasons Series Trust - Allocation Moderate Growth
... risks of investing in the Portfolio by showing changes in the Portfolio’s performance from calendar year to calendar year and comparing the Portfolio’s average annual returns to those of the Russell 3000® Index, the MSCI EAFE Index (net), the Bloomberg Barclays U.S. Aggregate Bond Index and a blende ...
... risks of investing in the Portfolio by showing changes in the Portfolio’s performance from calendar year to calendar year and comparing the Portfolio’s average annual returns to those of the Russell 3000® Index, the MSCI EAFE Index (net), the Bloomberg Barclays U.S. Aggregate Bond Index and a blende ...
"International Reserves and Rollover Risk"
... for the government. We find that it is relatively more costly to accumulate reserves when lenders are more risk averse and when income is lower. When lenders’ risk aversion takes a high value, the government has to pay a higher risk premium for the extra risk lenders face. Moreover, we also show tha ...
... for the government. We find that it is relatively more costly to accumulate reserves when lenders are more risk averse and when income is lower. When lenders’ risk aversion takes a high value, the government has to pay a higher risk premium for the extra risk lenders face. Moreover, we also show tha ...
The Impact of Enterprise Risk Management on the Marginal Cost of
... create or exacerbate other types of risk for the company. Such interactions between risks are not always obvious, especially when they occur among unrelated businesses within the firm.” 4 In contrast, once a firm adopts ERM, the Post-ERM firm becomes ‘aware’ of its portfolio and is able to recognize ...
... create or exacerbate other types of risk for the company. Such interactions between risks are not always obvious, especially when they occur among unrelated businesses within the firm.” 4 In contrast, once a firm adopts ERM, the Post-ERM firm becomes ‘aware’ of its portfolio and is able to recognize ...
strukture for the decree on minimum capital requirements for market
... (d) "actual distribution" means a distribution of market values or exposures at a future time period where the distribution is calculated using historic or realised values such as volatilities calculated using past price or rate changes. Article 5 (terms relating to exposure measures and adjustments ...
... (d) "actual distribution" means a distribution of market values or exposures at a future time period where the distribution is calculated using historic or realised values such as volatilities calculated using past price or rate changes. Article 5 (terms relating to exposure measures and adjustments ...
Guide to Mortgage-Backed Securities
... of mortgages and ready acceptance of MBSs by fixed-income investors are both key reasons. Mortgage originators became much more disposed to sell loans into the secondary market after the high-interest-rate environment of the late 1970s and early 1980s, when the disadvantages of holding fixed-rate lo ...
... of mortgages and ready acceptance of MBSs by fixed-income investors are both key reasons. Mortgage originators became much more disposed to sell loans into the secondary market after the high-interest-rate environment of the late 1970s and early 1980s, when the disadvantages of holding fixed-rate lo ...
call-for-input on the crowdfunding rules
... transferred to us. This gave us responsibility for regulating firms lending by way of business through loan-based crowdfunding platforms, and also the platforms themselves – the activity of operating a peer-to-peer lending platform became a bespoke regulated activity from 1 April ...
... transferred to us. This gave us responsibility for regulating firms lending by way of business through loan-based crowdfunding platforms, and also the platforms themselves – the activity of operating a peer-to-peer lending platform became a bespoke regulated activity from 1 April ...
Intensity and Effectiveness of SIFI Supervision
... operational independence and also expanding on some of the criteria for assessment. For instance some criteria that could be considered would be, under what circumstances key decisions on individual companies be referred to the government; supervisory agencies should not manage or otherwise run the ...
... operational independence and also expanding on some of the criteria for assessment. For instance some criteria that could be considered would be, under what circumstances key decisions on individual companies be referred to the government; supervisory agencies should not manage or otherwise run the ...
Disclosure Booklet - Oregon College Savings Plan
... positive or negative duration) and during periods when prevailing interest rates are low or negative. Bonds and other debt instruments typically have a positive duration. The value of a debt instrument with positive duration will generally decline if interest rates increase. Certain other investment ...
... positive or negative duration) and during periods when prevailing interest rates are low or negative. Bonds and other debt instruments typically have a positive duration. The value of a debt instrument with positive duration will generally decline if interest rates increase. Certain other investment ...
Shaping change in insurance - Analysts` conference 2017
... Increase of insurers’ claims severity and frequency due to different drivers, e.g. construction cost, medical or wage inflation ...
... Increase of insurers’ claims severity and frequency due to different drivers, e.g. construction cost, medical or wage inflation ...
Strategic Informed Trades, Diversification, and Expected Returns*
... of informed traders is small, they trade less aggressively on their private information so as to limit the information that uninformed traders can learn from price. This lowers the average precision of information and increases the risk borne by uninformed traders, which raises cost of capital. In ...
... of informed traders is small, they trade less aggressively on their private information so as to limit the information that uninformed traders can learn from price. This lowers the average precision of information and increases the risk borne by uninformed traders, which raises cost of capital. In ...
Here - Connecticut Insurance Law Journal
... Persistently high profits on “insurance” for small value losses sold as an add-on to other products or services (such as extended warranties sold with consumer electronics, loss damage waivers sold with a car rental, and credit life insurance sold with a loan) pose a twofold challenge to the standar ...
... Persistently high profits on “insurance” for small value losses sold as an add-on to other products or services (such as extended warranties sold with consumer electronics, loss damage waivers sold with a car rental, and credit life insurance sold with a loan) pose a twofold challenge to the standar ...