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IAU Plan - ImamFaisal.com
IAU Plan - ImamFaisal.com

... If the lender stipulates extra money by the borrower-either when he pays on time or when he delays his payment--this is “riba of increase ‫ربا‬ ‫ ”الفضل‬. This includes even the stipulation of providing help, service, a gift, food or anything because of the loan - A well known rule: “any loan that d ...
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Full Article

On the Construction of an Early-Warning System for Systematic Risk
On the Construction of an Early-Warning System for Systematic Risk

UnitedHealth Group Third Quarter 2015 Form 10-Q
UnitedHealth Group Third Quarter 2015 Form 10-Q

... Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to su ...
Portfolio Management: Course Introduction
Portfolio Management: Course Introduction

Quantifying Domestic Effects of Foreign Bank Shocks in the Great
Quantifying Domestic Effects of Foreign Bank Shocks in the Great

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Pros and Cons of Structural Models - Berkeley-Haas
Pros and Cons of Structural Models - Berkeley-Haas

Asset Classes and Financial Instruments
Asset Classes and Financial Instruments

... and cheaply sold for cash. Figure 2.2 shows that bank CDs, for example, consistently have paid a premium over T-bills. Moreover, that premium increased with economic crises such as the energy price shocks associated with the two OPEC disturbances, the failure of Penn Square bank, the stock market cr ...
Financial Regulation, Behavioural Finance, and the Global Credit
Financial Regulation, Behavioural Finance, and the Global Credit

... style is an inadequate way of regulating the banking industry. The objective of banking regulation should be to minimize the savings and loans industry’s exposure, since inevitably this will continue to operate under an implicit public guarantee, to the extreme swings of global capital markets. Othe ...
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Our Favorite Charts of 2016

CNN Money
CNN Money

... stretch of time, the more important earnings trends are. Indeed, since World War II, an estimated 90% of the stock market's gain has come from profit growth. As profits add up over time, the scale tips and prices rise, regardless of how investors have voted in any given day, month or year. Interest ...
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Household Credit Growth in Emerging Market Countries
Household Credit Growth in Emerging Market Countries

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In thIs Issue... The same policies that got the world economy into

global fixed income necessary in well-diversified portfolios
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The corporate finance implications of rapidly rising interest rates.

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GAAP - Office of Superintendent of Public Instruction
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The Impact of Quantitative Easing Measures on Interest Rates

... of gold to Europe, which could potentially have pulled down the economy even more. They therefore came out with the concept of “Operation Twist” by lowering long-term interest rates while keeping short-term rates unchanged thereby offering a solution with the dilemma of the Bretton Woods system. “Th ...
Important information on Fidelity Advisor Stable Value Portfolio
Important information on Fidelity Advisor Stable Value Portfolio

... Duration: Duration is a measure of a security's price sensitivity to changes in interest rates. Duration differs from maturity in that it considers a security's interest payments in addition to the amount of time until the security reaches maturity, and also takes into account certain maturity short ...
550.448 Financial Engineering and Structured Products
550.448 Financial Engineering and Structured Products

...  The MBS assumes the same characteristics as the collateral that secure the principal and interest payments.  Bonds that are based on collateral with fixed rates are called fixed rate MBS.  Bonds that are based on collateral with floating rates are called adjustable rate mortgage backed securitie ...
Item 1: Cover Page - True Life Financial Planning
Item 1: Cover Page - True Life Financial Planning

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Securitization

Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations (or other non-debt assets which generate receivables) and selling their related cash flows to third party investors as securities, which may be described as bonds, pass-through securities, or collateralized debt obligations (CDOs). Investors are repaid from the principal and interest cash flows collected from the underlying debt and redistributed through the capital structure of the new financing. Securities backed by mortgage receivables are called mortgage-backed securities (MBS), while those backed by other types of receivables are asset-backed securities (ABS).Critics have suggested that the complexity inherent in securitization can limit investors' ability to monitor risk, and that competitive securitization markets with multiple securitizers may be particularly prone to sharp declines in underwriting standards. Private, competitive mortgage securitization is believed to have played an important role in the U.S. subprime mortgage crisis.In addition, off-balance sheet treatment for securitizations coupled with guarantees from the issuer can hide the extent of leverage of the securitizing firm, thereby facilitating risky capital structures and leading to an under-pricing of credit risk. Off-balance sheet securitizations are believed to have played a large role in the high leverage level of U.S. financial institutions before the financial crisis, and the need for bailouts.The granularity of pools of securitized assets can mitigate the credit risk of individual borrowers. Unlike general corporate debt, the credit quality of securitized debt is non-stationary due to changes in volatility that are time- and structure-dependent. If the transaction is properly structured and the pool performs as expected, the credit risk of all tranches of structured debt improves; if improperly structured, the affected tranches may experience dramatic credit deterioration and loss.Securitization has evolved from its beginnings in the late 18th century to an estimated outstanding of $10.24 trillion in the United States and $2.25 trillion in Europe as of the 2nd quarter of 2008. In 2007, ABS issuance amounted to $3.455 trillion in the US and $652 billion in Europe. WBS (Whole Business Securitization) arrangements first appeared in the United Kingdom in the 1990s, and became common in various Commonwealth legal systems where senior creditors of an insolvent business effectively gain the right to control the company.
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