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Northern Trust
Northern Trust

U.S. Monetary Policy Forum, February 29, 2008
U.S. Monetary Policy Forum, February 29, 2008

Subject: Economics with Financial Literacy
Subject: Economics with Financial Literacy

... credit score-and provide them to lenders. An applicant’s credit score can also be used by prospective employers, landlords, insurance companies, ...
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Morgan Stanley Global Fixed Income Strategy

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... inventory turnover ratio (based on cost) of 3.0, and average collection period (ACP) of 45 days. Complete the following current section of the firm's balance sheet. Clearly show/label the calculation of each component. ...
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Preferred Securities: A Tax-Advantaged Alternative to Muni Bonds

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Lecture 17: The IMF & Financial Crises

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... Concentration in a particular industry will involve a greater degree of risk than a more diversified portfolio. Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensit ...
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... relative to government bonds). Where we expect to see this playing out most obviously is in high yield. As Treasury yields rise in response to the start of the Fed tightening cycle, high yield spreads should narrow from their current 600 basis point level over Treasuries. This has already started w ...
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Final Exam

... • Regulatory firewall between commercial and investment bank activities • Severely limited right of commercial bank to issue securities • Parts -repealed in 1999 - no longer illegal for investment commercial bank to also engage in business/commercial and retail banking. ...
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PDF

Globalstrategyweekly report 20120706
Globalstrategyweekly report 20120706

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News Event Report: Earthquake in Italy, August 2016

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Real Estate Finance: An Overview
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... B. But borrowers tried to get around this clause by arranging their sales as leases with options to buy, or as contracts-for-deed, or simply not notifying lenders that sales had occurred. Court cases, especially Wallenkamp vs. Bank of America in California, tended to view the alienation, or “due-on- ...
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Unauthorised - ACT Legislation Register

... It has been agreed that the borrowing requirements of the Land Development Agency (LDA) will be provided internally from the Territory Banking Account through a loan credit facility. Section 59 of the Financial Management Act 1996 allows the Treasurer to lend public money to a Territory Authority on ...
The Value of a “Aaa” Debt Rating
The Value of a “Aaa” Debt Rating

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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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