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Lesson 10 - La Passerelle
Lesson 10 - La Passerelle

model answers and marking scheme
model answers and marking scheme

... a) Foreign exchange risk, also known as “currency risk” or “exchange-rate risk” is the risk of an investment's value changing due to changes in currency exchange rates or the risk that an investor will have to close out a long or short position in a foreign currency at a loss due to an adverse movem ...
The GreaT DebaTe: Income vs . ToTal reTurn
The GreaT DebaTe: Income vs . ToTal reTurn

... future results. It is recommended that clients consult with their tax professional for specific tax-related questions. Forward‐looking statements, including without limitation any statement or prediction about a future event contained in this presentation, are based on a variety of estimates and ass ...
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Global liquidity: where do we stand?

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EDGAR, - Buy Test banks and Solution Manuals

... 1. An investor purchased on margin Orange Computer for $30 a share. The stock's price subsequently increased to $50 a share at which time the investor sold the stock. If the margin requirement were 60 percent and the interest rate on borrowed funds were 7 percent, what would be the percentage earned ...
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Topic No. D-36 Topic: Selection of Discount Rates Used for

Far Horizon Investments - Penn State Smeal College of Business
Far Horizon Investments - Penn State Smeal College of Business

... During its fourth year, FHI was having difficulty finding enough investment opportunities and, though returning almost 20% after fees, underperformed the US market. As a consequence, FHI management decided to return over $2 billion of capital to investors (though the partners decided to contribute m ...
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... 1. During the coming year, the firm will mount a major program to expand sales. The expected result is a 20% growth in revenue. Pricing and product mix will remain unchanged. 2. The revenue growth will be accomplished by increasing efforts in the marketing/sales department. The increased expenses ge ...
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Everything You Wanted to Know about Credit Default Swaps-

... Credit default swaps (CDSs) have been identified in media accounts and by various commentators as sources of risk for the institutions that use them, as potential contributors to systemic risk, and as the underlying reason for the bailouts of Bear Stearns and AIG. These assessments are seriously wid ...
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Roundtable`s Evaluation of the SEC`s Proposals for Reform

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Discusión Estratégica

... are not guarantees of future performance and may involve risks and uncertainties, and that actual results may differ from those set forth in the forward-looking statements as a result of various factors (including, without limitations, the actions of competitors, future global economic conditions, m ...
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US Financial Crisis Causes and Its Impact on India

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... Interest on municipal bonds is exempt from federal tax on coupon interest payments. Muni-bonds and taxable corporates are similar except for the taxation of interest. The yield on municipals equals the yield on taxables times one minus the marginal tax rate. ...
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Business Cycle Update Impact of Fed Tightening

... faster-than-expected monetary tightening. If investors perceive that the Fed is moving to a tightening posture earlier than expected (current market perception assumes an initial rate hike in mid-2015), it could create volatility in the asset markets. A sell-off in riskier assets might have a late-c ...
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... “I am very pleased with Marlin’s second quarter results that included accelerating origination volume, excellent credit quality and solid net income growth,” commented Jeffrey Hilzinger, Marlin’s President and Chief Executive Officer. “Total originations increased 30.3% year-over-year to $121.5 mill ...
Market Comment - Emerging Market Corporate Bonds
Market Comment - Emerging Market Corporate Bonds

... semi-annual report of Sparinvest SICAV which can be obtained free of charge at the offices of Sparinvest or of appointed distributors together with the initial statutes of the funds and any subsequent changes to such statutes. Investments are only made on the basis of these documents. Past performan ...
The Great Recession: Lessons from Microeconomic Data
The Great Recession: Lessons from Microeconomic Data

... increase in home purchase mortgage originations from 2002 to 2005 experienced relative declines in income. In fact, the evidence is even more extreme. We isolate the sample to zip codes that experienced negative income growth in nominal terms from 2002 to 2005, and compare these zip codes to others ...
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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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