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Opening Remarks: The Economic Outlook
Opening Remarks: The Economic Outlook

The Importance of Geographic Diversification in Today`s Municipal
The Importance of Geographic Diversification in Today`s Municipal

... levels of state and local governments. It is natural for a state and its localities to depend on each other for revenue collection, service provision, and other basic functions of government. It follows that statespecific municipal bond investors would be subject to correlated risks. In our view, th ...
Chapters 15 and 16 Chapter 15
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... Principles of Accounting II: Chapters 15 and 16 Chapter 15 1. One potential advantage of financing corporations through the use of bonds rather than common stock is a. the interest on bonds must be paid when due. b. the corporation must pay the bonds at maturity. c. the interest expense is deductibl ...
To view this press release as a Word document
To view this press release as a Word document

May 2007 – Securitisation.World Mena
May 2007 – Securitisation.World Mena

An introduction to diversification by risk factor PORTFOLIO INSIGHTS
An introduction to diversification by risk factor PORTFOLIO INSIGHTS

... rate of 2.65 per annum. During that time, there’s a risk that interest rates will rise, meaning investors will receive a lower rate of return than the prevailing market rate over that three-year period i.e. instead of getting 2.65 per cent, they could have received a higher rate. Locking your money ...
Securitisation Middle East Presentation
Securitisation Middle East Presentation

Be Careful of What You Think You Know
Be Careful of What You Think You Know

ITEM
ITEM

security analysis and portfolio management
security analysis and portfolio management

Insecurities: How a Financial Innovation Led to the Great Recession
Insecurities: How a Financial Innovation Led to the Great Recession

... different risk and interest characteristics in such a way as to cause their product to yield higher returns than the safest loans but face less risk than the loans which paid the highest interest. When buying part of one of these securitized debt obligations also known as asset backed securities (AB ...
1 ,37 Z2cie, 3
1 ,37 Z2cie, 3

... listed on the stock exchange which are not railroads or canals. It therefore includes all forms of securities issued by corporationsother than political, having for the justification of their existence the advancement of mankind commercially and financially. It will be seen that Insurance Companies ...
Aktia Bank Plc (2013)
Aktia Bank Plc (2013)

... Covered Bond refinancing max LTV limit: 70%, Underwriting maximum LTV limits: 70% 1) ...
BankGuam Holding Company
BankGuam Holding Company

... Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indi ...
Chapter 10
Chapter 10

... When a bond is issued (sold) at its face amount, it is issued at par. In contrast, when a bond is sold at an amount lower than the par amount, it is issued at a discount, and conversely, when it is sold at a price above par, it is issued at a premium. A bond will sell at a discount when the market, ...
Catastrophe Bond Update: Fourth Quarter and Full
Catastrophe Bond Update: Fourth Quarter and Full

... an indemnity, three year aggregate basis. The Class 1 Notes provide investors with an initial risk interest spread of 2.875 percent per annum (initial price guidance was quoted as 2.75 percent to 2.875 percent) corresponding to a one year expected loss of 1.16 percent. The Class 2 Notes provide inv ...
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Debt and Asia’s Success*
Debt and Asia’s Success*

Rocking-Horse Winner
Rocking-Horse Winner

... country to country, but basically it comes down to these: 1) Can a country issue its own currency and is it acceptable in global commerce? 2) Are a country’s initial conditions (outstanding debt, structural deficit, growth rate, demographic balance) moderate and can it issue future public debt as a ...
and debt
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World Bank Group Affiliates
World Bank Group Affiliates

... When to use Insurance • It is an ongoing debate as to when to use insurance coverage. • If a foreign buyer cannot provide an acceptable letter of credit or if export credit insurance cannot be obtained, the Risk-Return Trade off needs to be scrutinized. • Energy & Energy Service companies dealing i ...
Current and Future Banking Trends for Municipalities
Current and Future Banking Trends for Municipalities

Savvy Investors` Credit Workbook
Savvy Investors` Credit Workbook

Overview of Financial Statement Analysis
Overview of Financial Statement Analysis

... • Almanac of Business and Industrial Financial Ratios. Prentice Hall. Lists 24 key financial ratios for 180 industries based on IRS data. • Business Profitability Data. Covers 294 types of small business, listing source and use of capital, sales and income, profitability versus assets, profitability ...
PDF - Lazard Asset Management
PDF - Lazard Asset Management

... two likely outcomes—equity assets with exposure to US growth will be supported, while interest rates would experience upward pressure. The implications are significant for investors in US fixed income, which have been bid up over the past several years as central banks pushed down rates and investor ...
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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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