Download Traded loans (borderline between securities and other financial

yes no Was this document useful for you?
   Thank you for your participation!

* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project

Document related concepts

Payday loan wikipedia , lookup

Yield spread premium wikipedia , lookup

Federal takeover of Fannie Mae and Freddie Mac wikipedia , lookup

Security interest wikipedia , lookup

Peer-to-peer lending wikipedia , lookup

Interbank lending market wikipedia , lookup

History of pawnbroking wikipedia , lookup

Short (finance) wikipedia , lookup

Mark-to-market accounting wikipedia , lookup

Public finance wikipedia , lookup

Credit rating agencies and the subprime crisis wikipedia , lookup

Geneva Securities Convention wikipedia , lookup

Financialization wikipedia , lookup

Debt wikipedia , lookup

Amman Stock Exchange wikipedia , lookup

Securitization wikipedia , lookup

Student loan wikipedia , lookup

Security (finance) wikipedia , lookup

Loan shark wikipedia , lookup

Syndicated loan wikipedia , lookup

Traded loans (borderline between securities and other financial
With respect to question (a), the AEG decided that the current SNA position should be
maintained: that is, the loan should be reclassified as a security only if there is evidence of a
market and there are quotations in the market.
This change of category of financial instrument is achieved via a change in classification entry in
the other changes in the volume of assets account and not via transactions cancelling the loan and
issuing a security.
The fact that a loan is sold once does not necessarily involve reclassifying the loan as a security.
Questions (b) and (c) were not considered by the AEG because in general traded loans would not
be reclassified as debt securities – they would not change their classification status as a result of
being sold.
There was agreement not to break down loans into traded and non-traded categories.
With respect to question (e), the AEG agreed that untraded securities should not be reclassified.