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April - sibstc
April - sibstc

... US vs CHINA - Whether the ongoing currency war- A cause for concern? Tensions have been rising over China’s Yuan policy ever since the US President depicted China as “currency manipulator,” during his earlier days in office. Western countries along with some emerging economies are of the view that C ...
Money Market instruments
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... Dealer or Secondary Dealer of the SGS market to open a SGS trading account Purchase SGS over the counter with these banks Scripless, ownership of SGS reflected as a book entry in the investor's account with the bank Primary auctions, need to open accounts with and submit your bids through the Primar ...
Private Cash Flow Statements
Private Cash Flow Statements

Financial statements
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111 KB - Budget.gov.au
111 KB - Budget.gov.au

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IDENTIFYING & MANAGING SYSTEMIC RISK
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FINANCIAL MARKETS AND INSTITIUTIONS: A Modern Perspective

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FINANCIAL MARKETS AND INSTITIUTIONS: A Modern Perspective
FINANCIAL MARKETS AND INSTITIUTIONS: A Modern Perspective

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2009 - Homex
2009 - Homex

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... diversification cannot protect you from a nasty bear market. Correlations tend to increase to one when the market goes down, and the only way to reduce your downside exposure in this scenario is to hold more cash or fixed income. As correlations between asset classes have been increasing steadily ov ...
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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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