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How should investors value nuclear liabilities?
How should investors value nuclear liabilities?

... these liabilities matters for assessing the viability of new nuclear power stations and was a factor in the financial crisis at the privatised nuclear company British Energy in 2002. There is only a modest accounting literature on nuclear liabilities but their similarity to pension liabilities means ...
How can emerging market economies best cope with the current
How can emerging market economies best cope with the current

... market valuations, making them more vulnerable. That said, historically the correlation between bond and equity prices has varied substantially. ...
Chapter 1 1 2
Chapter 1 1 2

... as IRR or MIRR will change in response to a given change in an input variable, other things held constant. Sensitivity analysis is sometimes called “what if” analysis because it answers this type of question. Scenario analysis is a shorter version of simulation analysis that uses only a few outcomes ...
GCD Discount Rate - Global Credit Data
GCD Discount Rate - Global Credit Data

Presentation
Presentation

... from the domain of opinion into data • Let me explain, starting with one postulated structure • Remember, we can always change the postulated structure if we find a better one later • For now, let us focus on thinking about choice of valuation rules as we think about choice of econometric estimators ...
Lecture 5
Lecture 5

... Working outside the markets means creating absolute return and hopefully absolute value, by working outside or almost outside the context of the public securities market. Private Equity Investment is the means by which an investor can play outside or almost outside the securities markets sandbox. Th ...
Concentrated Ownership and Bailout Guarantees (November 2005)
Concentrated Ownership and Bailout Guarantees (November 2005)

... not affect the cost of capital. This assumption makes gambling with borrowed money particularly attractive. However, it is implausible in the light of recent evidence on ownership structure.2 In emerging economies, controlling shareholders often hold large stakes, even in large firms. This suggests t ...
Unresolved Issues in Modeling Credit Risky Assets
Unresolved Issues in Modeling Credit Risky Assets

Atlassian Case Study Answers and Discussion
Atlassian Case Study Answers and Discussion

Q1 - Franchise Services of North America Inc.
Q1 - Franchise Services of North America Inc.

Macroeconomic stress testing of a corporate credit portfolio Magister Scientiae By
Macroeconomic stress testing of a corporate credit portfolio Magister Scientiae By

... Schumacher (2012). There are Top-Down approaches where expert judgment is applied to risk factors to determine portfolio impacts at a very high level, or Bottom-Up approaches where modelling is based on some quantitative model which uses external factors as inputs to stress the risk parameters of un ...
April 24, 2017 JNL/American Funds Blue Chip
April 24, 2017 JNL/American Funds Blue Chip

... political upheaval, acts of terrorism, financial troubles, or natural disasters. Many foreign securities markets, especially those in emerging market countries, are less stable, smaller, less liquid, and less regulated than U.S. securities markets, and the costs of trading in those markets is often ...
Diversification Preferences in the Theory of
Diversification Preferences in the Theory of

NBER WORKING PAPER SERIES AGGREGATE IMPLICATIONS OF CREDIT MARKET IMPERFECTIONS Kiminori Matsuyama
NBER WORKING PAPER SERIES AGGREGATE IMPLICATIONS OF CREDIT MARKET IMPERFECTIONS Kiminori Matsuyama

... Credit market imperfections provide the key to understanding many important issues in business cycles, growth and development, and international economics. Recent progress in these areas, however, has left in its wake a bewildering array of individual models with seemingly conflicting results. This ...
performance analysis for the two-minute portfolio in both canadian
performance analysis for the two-minute portfolio in both canadian

CREDIT SUPPLY AND THE HOUSING BOOM
CREDIT SUPPLY AND THE HOUSING BOOM

... constraints, but it would sacrifice the intuitive decomposition of the demand and supply factors behind the boom, which is central to our analysis. Even if the two constraints are independent in our framework, their interaction is key in equilibrium, because house prices depend on their collateral v ...
Quantitative Easing and the Liquidity Channel of Monetary Policy
Quantitative Easing and the Liquidity Channel of Monetary Policy

... is especially relevant to the current policy discussion because it resembles the original conception of a “liquidity trap” as a region where the relative demand of bonds and money is flat (Robertson, 1940); having been derived in a model where bonds are real and prices are perfectly flexible and det ...
An economic and financial exploratory
An economic and financial exploratory

... many other questions, e.g. how to deal with imbalances in global capital flows [8] or how to reduce greenhouse gas emissions [9]. However, it should be recalled that all these models are, as their name suggests, equilibrium models. It is taken as an article of faith that markets if temporarily out of ...
The Origins and Severity of the Public Pension Crisis
The Origins and Severity of the Public Pension Crisis

... Individual investors must also be concerned about market fluctuations since they only retire once. Much of the savings of individual investors are focused on retirement. If the market is depressed at the point where they choose to or are forced to retire, then they could have a substantially lower i ...
PDF
PDF

... using 1989-93 average price and consumption and are presented in Table 1. The random yields both in the US and the EU are assumed to be independently and identically distributed following a log-normal distribution with an estimated mean of 40 and 66 bushels per acre, respectively, and an identical c ...
PDF
PDF

... Most popular credit risk models based on the structure model in commercial lending, such as KMV’s1 expected default frequency model (EDF), pre-require information on macroeconomic factors and long-time loss data for computing asset correlation and default rates. However, the prerequisites are hard ...
PDF
PDF

... necessitates the inclusion of land markets into a policy relevant modelling tool. Many existing partial equilibrium models present crop supply as a function of yield and agricultural area, see CAPSIM, AGLINK, AgMEMOD and ESIM. In all of these models, area allocation is determined by own and cross co ...
Allocation of risks and equilibrium in markets with finitely many traders
Allocation of risks and equilibrium in markets with finitely many traders

Best Practice Risk Management
Best Practice Risk Management

... – Change in market value resulting from broad market movements ...
Hanke-Guttridge Discounted Cash Flow Methodology
Hanke-Guttridge Discounted Cash Flow Methodology

... liabilities and stockholder’s equity. Stockholder’s Equity is the difference of assets – liabilities. This money is either gathered from an IPO of the firm’s stock or from retained earnings, which is surplus money from the firm’s operations that is reinvested into the firm. In order to commence the ...
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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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