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Mortgage Credit & Subprime Lending: Implications of a
Mortgage Credit & Subprime Lending: Implications of a

... techniques like collateralized debt obligations or CDOs. (1) • Derivative Finance: A private sector push by largest banks and abetted by regulators to employ derivative vehicles like CDOs to meet demand for housing finance that came as a result of the affordable housing initiative. • Monetary Policy ...
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... seeking additional powers to intervene in the market to control loan to value ratios and debt to income ratios. These measures could weigh on mortgage availability as lenders become more cautious. ...
Recent Developments in Real Estate, Financial Markets, and the Economy
Recent Developments in Real Estate, Financial Markets, and the Economy

... cut in the primary credit rate we offer to banks that borrow from the Federal Reserve, to just half a percentage point above the federal funds rate, and of course followed with a half a percentage point reduction in the federal funds rate at the meeting on September 18. Residential investment has be ...
Dynamic analysis of bankruptcy and economic waves
Dynamic analysis of bankruptcy and economic waves

... Two principal forms of bankruptcy procedures exist: an asset sale (or cash auction) and a structural bargaining. The sale of the firm’s assets is usually supervised by a trustee, or a receiver. Such procedures and supervision are not as evident as it seems from the old capitalist world. For example, ...
Incorporating Extreme Weather Risks in Asset Management Planning
Incorporating Extreme Weather Risks in Asset Management Planning

... • Top (Prioritized) Undermanaged Risks – Inability to appropriately manage culverts ...
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... How to interpret the standard deviation as a measure of risk  Given a normal distribution of stock returns …  there is about a 68.26% probability that the actual return will be within 1 standard deviation of the mean.  there is about a 95.44% probability that the actual return will be within 2 s ...
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... exposure to non-traditional beta or risk premia that are unavailable via traditional products; and alpha, or excess returns from manager skill. During the recent global financial crisis, diversification offered limited protection as correlations between many ordinarily unrelated asset classes increa ...
rejda_rmi12_im01
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... characteristics of the legal system or regulatory environment that increase the frequency or severity of losses. 4. (a) Pure risk is defined as a situation in which there are only the possibilities of loss or no loss. Speculative risk is defined as a situation where either profit or loss is possible ...
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... and the commitment of top management in terms of implementing ethics policies and programs. Other organizational factors include the reward structure of the organization and whether and how sanctions are used for ethical/ unethical behavior. Beyond such formal features of organizations, attitudes a ...
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... temperatures set in the U.S., as well as large-scale heat waves and widespread drought through the lower 48 states, and may well be declared the most extreme weather year on U.S. record.4 According to the Munich Re study, North America is at greater risk than other continents for extreme weather eve ...
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this resource
this resource

... CR3: Credit institutions should use internal limits, thresholds or similar concepts, as appropriate, having regard to their overall risk management and measurement. Institutions should establish, as appropriate, a set of limits, thresholds or similar concepts for credit risk management. Procedures s ...
This PDF is a selection from a published volume from... Bureau of Economic Research
This PDF is a selection from a published volume from... Bureau of Economic Research

... that they originated, and their mortgage portfolios grew more rapidly than in the case of institutions that lobbied less. The lobbying institutions also differed in their performance ex post: delinquency rates in 2008 were higher in the areas where these firms concentrated their lending, and the sto ...
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The Rise and Fall of Subprime Mortgages
The Rise and Fall of Subprime Mortgages

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Collateralized Mortgage Obligations
Collateralized Mortgage Obligations

... Companion bonds are a special class of CMO bond that is paid off first when the underlying mortgages in a CMO pool are prepaid. Prepayments tend to occur when interest rates fall, so the payment rate on the companion bonds vary with interest rates. As a result, companion bonds absorb much of the pre ...
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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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