Ch. 1
... • American Depository Receipts (ADRs) claim in shares of a foreign company • Foreign securities offered in dollars • Mutual funds that invest internationally • Variant of ADR: Exchange Traded Funds (ETFs) ,diversified investment in foreign shares, e.g. iSHAREs, WEBS ...
... • American Depository Receipts (ADRs) claim in shares of a foreign company • Foreign securities offered in dollars • Mutual funds that invest internationally • Variant of ADR: Exchange Traded Funds (ETFs) ,diversified investment in foreign shares, e.g. iSHAREs, WEBS ...
Six Degrees of Separation In the simplest terms, what went wrong in
... rating agencies and the CDO manager. In each case that trust was misplaced. In the secondary market, mortgage transactions are generally structured so that someone at zero or one degree of separation would take the first slice of credit risk and thus insure that loans were originated properly. In th ...
... rating agencies and the CDO manager. In each case that trust was misplaced. In the secondary market, mortgage transactions are generally structured so that someone at zero or one degree of separation would take the first slice of credit risk and thus insure that loans were originated properly. In th ...
Collateralized Debt Obligations: Structuring, Pricing and Risk Analysis
... If defaults are independent, distribution of number of defaults in a portfolio of size n is Binomial B(n,p), where p is the individual default probability. Example: n=60, p=0.1 ...
... If defaults are independent, distribution of number of defaults in a portfolio of size n is Binomial B(n,p), where p is the individual default probability. Example: n=60, p=0.1 ...
Inside Job – Vocabulary Asset Backed Security (ABS) An asset
... exposure to a portfolio of fixed income assets. Synthetic CDOs are a modern advance in structured finance that can offer extremely high yields to investors. Synthetic CDOs are typically divided into credit tranches based on the level of credit risk assumed. Initial investments into the CDO are made ...
... exposure to a portfolio of fixed income assets. Synthetic CDOs are a modern advance in structured finance that can offer extremely high yields to investors. Synthetic CDOs are typically divided into credit tranches based on the level of credit risk assumed. Initial investments into the CDO are made ...
Deutsche Bank And UOB Asset Management Partner
... Currently, it has 36 unit trusts (with a total of 56 funds and sub-funds altogether) in Singapore, and 11 unit trusts in Malaysia. In terms of market coverage, UOBAM has developed specialist skills in equity investment in the Asian, Australian, European and US markets and in major global sectors. In ...
... Currently, it has 36 unit trusts (with a total of 56 funds and sub-funds altogether) in Singapore, and 11 unit trusts in Malaysia. In terms of market coverage, UOBAM has developed specialist skills in equity investment in the Asian, Australian, European and US markets and in major global sectors. In ...
risk periods and “extreme” market conditions
... • “Plan for everything that can go wrong” -- Sizing the risk of liquidity or structural supply/demand shifts is critical • Sizing the trade accordingly/not being too greedy in “normal” times • “Market Neutral” involves a mix of factor hedging (model/normal times) and “shock protection” strategies (b ...
... • “Plan for everything that can go wrong” -- Sizing the risk of liquidity or structural supply/demand shifts is critical • Sizing the trade accordingly/not being too greedy in “normal” times • “Market Neutral” involves a mix of factor hedging (model/normal times) and “shock protection” strategies (b ...
Troubled Times: How We Got There and What Lies Ahead
... – Has its own CUSIP number – May issue additional debt so investors can have their returns on the mortgages leveraged up (or down?) – Might invest in other CDOs (CDO2 , CDO3) – Usually offers investors different “tranches” with different characteristics, e.g., “interest only”, different mixes of pri ...
... – Has its own CUSIP number – May issue additional debt so investors can have their returns on the mortgages leveraged up (or down?) – Might invest in other CDOs (CDO2 , CDO3) – Usually offers investors different “tranches” with different characteristics, e.g., “interest only”, different mixes of pri ...
USCrisis
... Collateralized Debt Obligations (CDOs): a type of structured asset-backed security (ABS) whose value and payments are derived from a portfolio of fixed-income underlying assets- in Jupiter’s case home equity lines of credit Issuers and Underwriters typically are Investment Banks Jupiter’s underwrite ...
... Collateralized Debt Obligations (CDOs): a type of structured asset-backed security (ABS) whose value and payments are derived from a portfolio of fixed-income underlying assets- in Jupiter’s case home equity lines of credit Issuers and Underwriters typically are Investment Banks Jupiter’s underwrite ...
Definition 1 Government bonds Bonds issued by public authorities
... Contract between two parties concerning the selling of an asset at a reference price during a specified time frame, where the buyer of the put option gains the right, but not the obligation, to sell the underlying asset ...
... Contract between two parties concerning the selling of an asset at a reference price during a specified time frame, where the buyer of the put option gains the right, but not the obligation, to sell the underlying asset ...
The Great Recession
... high risk mortgages • Combined return can be high • But what happens if the high risk mortgages go bad? • No one wants to buy them—so their “real” value is uncertain • If there is no market, there is no price • As assets, CDOs suddenly become worthless • Banks don’t know how much money they have ...
... high risk mortgages • Combined return can be high • But what happens if the high risk mortgages go bad? • No one wants to buy them—so their “real” value is uncertain • If there is no market, there is no price • As assets, CDOs suddenly become worthless • Banks don’t know how much money they have ...
Financial assets
... especially subprime mortgage borrowers are not able to make payments, investors don’t get their money, values of CDOs decrease substantially. The value decrease is write-down and counted as loss in the income statement. For example, investment bank A, equity: $10 mil, borrow $90 mil. Invest all $100 ...
... especially subprime mortgage borrowers are not able to make payments, investors don’t get their money, values of CDOs decrease substantially. The value decrease is write-down and counted as loss in the income statement. For example, investment bank A, equity: $10 mil, borrow $90 mil. Invest all $100 ...
Financial assets
... especially subprime mortgage borrowers are not able to make payments, investors don’t get their money, values of CDOs decrease substantially. The value decrease is write-down and counted as loss in the income statement. For example, investment bank A, equity: $10 mil, borrow $90 mil. Invest all $100 ...
... especially subprime mortgage borrowers are not able to make payments, investors don’t get their money, values of CDOs decrease substantially. The value decrease is write-down and counted as loss in the income statement. For example, investment bank A, equity: $10 mil, borrow $90 mil. Invest all $100 ...