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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 ...
Part III. Project Description
Part III. Project Description

... Total Debt should include: Bank overdrafts and short term loans + Current portion of long term debt + Long term bank loans + Subordinated / Shareholder loans + CFC loan/ Enhanced equity 3) Interest Cover Ratio (ICR): EBITDA / Interest expenses Interest expenses should include all interest and other ...
r~ erivatives" has become a code word for anything financial... )bites you when you least expect it. Everyone has read...
r~ erivatives" has become a code word for anything financial... )bites you when you least expect it. Everyone has read...

BRAZIL IN THE 2000`S: FINANCIAL REGULATION AND
BRAZIL IN THE 2000`S: FINANCIAL REGULATION AND

... between October 1997 and February 1999. Investment, doubly hit by the rise of interest rates and by the increase in the level of uncertainty surrounding future prospects for the Brazilian economy, stagnated until the third quarter of 1998, after which it fell rapidly, down by 11% in the next four qu ...
Capital Requirements Directive - Pillar 3 Disclosures as at May 2017
Capital Requirements Directive - Pillar 3 Disclosures as at May 2017

... Due to the Firm’s size and nature of our activities the assessment has identified no additional risk- based capital requirements under pillar 2. Stress testing has shown that unless there is an exceptional down turn in economic conditions the Firm will continue to be able to meet its pillar 1 financ ...
1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION

... Adjustments to reconcile net income to net cash provided by operating activities: Amortization of net deferred loan origination fees, discounts and premiums Provision for loan and real estate losses Depreciation and amortization Net gain on sales of securities and loans Amortization of goodwill Allo ...
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Longevity risk transfer markets: market structure, growth drivers and

... While to date they have been less used than other types of transaction, they are an important instrument for longevity risk and could have a wider use in the future. Chapter 2 It would be helpful to highlight within this chapter the legal risk associated with longevity risk hedging contracts. These ...
FRONT STREET TACTICAL BOND FUND Interim Management
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... In December of 2015, the U.S. Federal Reserve raised interest rates 25 basis points, with an outlook of three to four more hikes in 2016. As the new year began, market sentiment deteriorated on concerns that China’s economy was slowing faster than anticipated, and amid rumours of large portfolio rea ...
Horizontal Analysis
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chapter 3 - UniMAP Portal
chapter 3 - UniMAP Portal

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Advancing the Credit Channel and Credit Rationing in the

... lender believes there is no chance that it will be repaid, and L = 1.00 means the payoff is believed to be certain), and, the interest rate on the loan (r).7 It is important to be clear that the r specified by the model is nothing more than the rate that would be charged on the single loan being con ...
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New Framework for Measuring and Managing Macrofinancial Risk and Financial Stability

Maturity and interest
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... rate to be established after receiving competitive bids from prospective purchasers. It is estimated that the Senior Bonds will provide interest rates between 5 percent and 6 percent with 15 to 20 year maturities. L plans to borrow the proceeds of Subordinated Bonds issued by the N to fund approxim ...
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CVP Analysis
CVP Analysis

... 4. XYZ currently has an Equity Capital of Rs. 40 lacs consisting 40000 equity shares of Rs. 100 each. The management plans to raise another Rs. 30 lakhs to finance a major expansion through the following means: i) Entirely through Equity Shares ii) Rs. 15 lakhs in equity shares of Rs. 100 each & bal ...
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... the liabilities of their pension plan for GAAP accounting purposes. As a result, the choice of discount rates will affect the balance sheet and credit rating. In addition, the disclosed discount rate will be used to determine FASB ASC 715 pension expense/income for the fiscal year as it affects serv ...
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... defined in the Repair Agreement), if any, as may be requested by the Lender or by the Rating Agencies or otherwise to effect the Secondary Market Transaction; provided, however, that the Borrower shall not be required to modify or amend any Loan Document if such modification or amendment would (i) c ...
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... Option Pricing (ROV): DCF applicable for traditional firms with cash cow characteristics (i.e. relatively predictable cash flows). Firms with high risk characteristics from either financial difficulty or growth firms have unpredictable cash flows that are difficult to evaluate using DCF methodology. ...
9.92% (9.70% p.a.) ZKB Barrier Reverse Convertible on worst of
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I. MACROECONOMIC DEVELOPMENTS
I. MACROECONOMIC DEVELOPMENTS

Risk and Return: Extensions
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... CAPM/SML concepts are based on expectations, yet betas are calculated using historical data. A company’s historical data may not reflect investors’ expectations about future riskiness. Other models are being developed that will one day replace the CAPM, but it still provides a good framework for thi ...
Why Do Interest Rates Change?
Why Do Interest Rates Change?

... The factors that influence the will to buy and hold asset or to buy one asset rather that another are:  Wealth, the total resources owned by individual, including all assets  Expected return, the return expected over the next period on one asset relative to alternative assets  Risk, the degree of ...
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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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