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On a long-term chart, trend lines drawn with closing price are more
On a long-term chart, trend lines drawn with closing price are more

Chapter 10 - Externalities
Chapter 10 - Externalities

... – If private parties can bargain without cost over the allocation of resources • They can solve the problem of externalities on their own ...
annual report - Beige Capital
annual report - Beige Capital

... BEIGE Capital Savings and Loans (BCSL) was adjudged the best Savings and Loans Company and inducted into the ‘Made in Ghana Hall of Fame’ at the 3rd Made in Ghana Awards 2015. The Company was also commended for its general banking and investment services in the Financial Services Provider category. ...
Fed Hikes and the Impact on Spread Sectors
Fed Hikes and the Impact on Spread Sectors

The Depression of 2008
The Depression of 2008

... As explained by Austrian-school economists such as Friedrich Hayek, high interest rates flatten the structure of capital goods, reducing the top layers. As with the example used above, think of trees that take 50 years to mature. If the tree grows 3 percent a year in value, but the market rate of in ...
HOW THE FLAWS OF BASEL II LED TO THE COLLAPSE OF BEAR
HOW THE FLAWS OF BASEL II LED TO THE COLLAPSE OF BEAR

... Some argue that investment banking is nothing more than a for-profit business similar to any other commercial enterprise.15 As a result, the advocates of this position assert that investment banks should be subject to the same regulatory oversight as any other business.16 Such oversight is often rel ...
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Download attachment

Working Paper No. 427 Liquidity Preference Theory Revisited—To
Working Paper No. 427 Liquidity Preference Theory Revisited—To

... Accordingly, the vision of capitalism underlying The General Theory is one of finance rather than saving as the precondition for entrepreneurial investment activity. While this was equally true for his earlier Treatise on Money as well, it was probably due to the primary focus in the later work on ...
Global safe assets - Bank for International Settlements
Global safe assets - Bank for International Settlements

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Ethical Investment and Portfolio Theory
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the probability of default under ifrs 9: multi
the probability of default under ifrs 9: multi

Capital Markets Review
Capital Markets Review

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Inequality, stock market participation, and the equity premium

... potential to explain various asset pricing puzzles (i.e. the equity premium puzzle of Mehra and Prescott (1985) and the risk free rate puzzle of Weil (1989)). Indeed, Constantinides and Duffie (1996) showed that any aggregate consumption stream can coexist with any price process if the idiosyncrati ...
Economic Performance, Wealth Distribution and Credit
Economic Performance, Wealth Distribution and Credit

... An important result is that we show that there are conflicts between small sized firms and large firms.8 Large firms are reluctant to improve the performance of financial markets, because it increases the size of loans available to restricted firms and allows the entry of some previously excluded en ...
pension funds as new financial intermediaries
pension funds as new financial intermediaries

... intermediaries4. There are no transactions costs and there exists a full set of contingent markets in which all can participate. Credit markets also being perfect, individuals do not face credit rationing. Allocation of resources is Pareto optimal and there is no role for intermediaries to add value ...
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23 June 2017 DANSKE INVEST HEDGE FIXED INCOME

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Political risk: what market impact

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16: Asset Valuation: Derivative Investments

... Arbitrage is riskless, because the same asset is simultaneously bought and sold short, so profit is guaranteed and with no investment required. Though true that forwards are not standardized, they are private contracts, do not trade on an exchange, and, therefore, there is a risk of default since no ...
Private Placements - Canadian Structured Finance Law
Private Placements - Canadian Structured Finance Law

Just what you need to know about Variance Swaps
Just what you need to know about Variance Swaps

... or provide advice or loans to, or participate in the underwriting or restructuring of the obligations of, issuers mentioned herein. The information contained herein is as of the date and time referenced above and JPMorgan does not undertake any obligation to update such information. All market price ...
Asia Pacific Real Estate Strategic Outlook
Asia Pacific Real Estate Strategic Outlook

... Japan: Japan’s prime minister Abe unveiled a new growth strategy in 2014 including corporate tax cuts, an investment policy change on Japan’s government pension fund and deregulation of the labour market. The corporate sector remained healthy in 2014 and the unemployment rate fell to its lowest leve ...
Just what you need to know about Variance Swaps
Just what you need to know about Variance Swaps

... or provide advice or loans to, or participate in the underwriting or restructuring of the obligations of, issuers mentioned herein. The information contained herein is as of the date and time referenced above and JPMorgan does not undertake any obligation to update such information. All market price ...
Making sense of international interest rate movements ARTICLES
Making sense of international interest rate movements ARTICLES

... movements in term interest rates in the US and the UK, two major markets with good data, since the global financial crisis intensified in 2008. It appears that the global financial crisis has had a largely temporary impact on longer-term measures of interest rate components: looking ahead, markets a ...
Serial Dependence and Portfolio Performance in the Swedish Stock
Serial Dependence and Portfolio Performance in the Swedish Stock

... 30 index. The main model studied in the paper is a Vector autoregressive (VAR) model. Ten years of data from the OMX 30 index is used, consisting of 27 stocks for the period 2006-2015 which is transformed into daily, weekly and monthly returns. First the significance of the models is tested and it i ...
The Recent Convergence of Financial Development in Asia
The Recent Convergence of Financial Development in Asia

... firms. There will be a greater need for institutions to transform risk, reducing it through aggregation and enabling it to be carried by those more willing to bear it. In this regard, Ang and McKibbin (2007) studied the case of Malaysia which has a history of finance sector reforms since the 1960s a ...
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Financial economics

Financial economics is the branch of economics characterized by a ""concentration on monetary activities"", in which ""money of one type or another is likely to appear on both sides of a trade"". Its concern is thus the interrelation of financial variables, such as prices, interest rates and shares, as opposed to those concerning the real economy. It has two main areas of focus: asset pricing (or ""investment theory"") and corporate finance; the first being the perspective of providers of capital and the second of users of capital.The subject is concerned with ""the allocation and deployment of economic resources, both spatially and across time, in an uncertain environment"". It therefore centers on decision making under uncertainty in the context of the financial markets, and the resultant economic and financial models and principles, and is concerned with deriving testable or policy implications from acceptable assumptions. It is built on the foundations of microeconomics and decision theory.Financial econometrics is the branch of financial economics that uses econometric techniques to parameterise these relationships. Mathematical finance is related in that it will derive and extend the mathematical or numerical models suggested by financial economics. Note though that the emphasis there is mathematical consistency, as opposed to compatibility with economic theory.Financial economics is usually taught at the postgraduate level; see Master of Financial Economics. Recently, specialist undergraduate degrees are offered in the discipline.Note that this article provides an overview and survey of the field: for derivations and more technical discussion, see the specific articles linked.
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