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Liquidity Now!
Liquidity Now!

Credit Risk
Credit Risk

ARK_letter10-07 - ARK Financial Services
ARK_letter10-07 - ARK Financial Services

... The main culprit for this volatility (as we all know by now) was the melt down in the subprime mortgage market. But what exactly happened here? The subprime mortgage market consists of borrowers with poor credit histories and the brokers who made risky loans to those borrowers. It is a part of the m ...
private credit for insurers
private credit for insurers

... The information contained here reflects the views of AllianceBernstein L.P. or its affiliates and sources it believes are reliable as of the date of this publication. AllianceBernstein L.P. makes no representations or warranties concerning the accuracy of any data. There is no guarantee that any pro ...
Purchasing Performing Accounts
Purchasing Performing Accounts

Equity Investment Approach - Retirement Income Management
Equity Investment Approach - Retirement Income Management

... factors come into focus in the screening process including the size of the company, dividend growth, return on equity, sales growth, cash flow growth, earnings growth, earnings momentum/surprise, and debt levels. Standard & Poors Quality Rankings (sales, earnings, and dividends) are also utilized as ...
How Housing Policy Hurts the Middle Class
How Housing Policy Hurts the Middle Class

... supported by financial leverage. Ultimately, taxpayers got the bill. Housing's 2008 collapse led to the U.S. Treasury takeover of Fannie's and Freddie's obligations even as the Federal Housing Administration increased its guarantees to more than $1 trillion and the Federal Reserve stepped up purchas ...
The crisis
The crisis

... two giants of America’s mortgage markets” • “Regulation is necessary and much must now be done to improve the laws of finance”: better oversight, more transparency, supervision of giants, accounting that values risk better, safer financial transactions (derivatives). Source: http://www.economist.com ...
PIMCO VIT Income Portfolio — Advisor Class
PIMCO VIT Income Portfolio — Advisor Class

The Reckoning NY Times
The Reckoning NY Times

... the argot of Wall Street, “hedge” — investment losses. For example, some of the contracts protect debt holders against losses on mortgage securities. (Their name comes from the fact that their value “derives” from underlying assets like stocks, bonds and commodities.) Many individuals own a common d ...
MBS Note
MBS Note

... • Condo; single family ...
Year 9 Financial Management Revision Booklet Name: Date: Topics
Year 9 Financial Management Revision Booklet Name: Date: Topics

... A risk management strategy that mixes a wide variety of investments within a portfolio. b. A market where investors purchase securities or assets from other Diversification investors, rather than from issuing companies themselves. c. The capital market that deals with issuing of new securities. Shar ...
PPT - unece
PPT - unece

... • Instrument complexity/financial interrelationships/underpricing of risk/perverse incentives ...
Personal Finance Notes 1
Personal Finance Notes 1

questions in real estate finance
questions in real estate finance

... PASS-THROUGHS Changes in market rates have two impacts on pass-through value: both the discount rate and the assumed prepayment will change  In senior/subordinated pass-throughs the senior security has enhanced rights to cash flows and subordinated security bears all the default risk ...
Asset-Backed Commercial Paper
Asset-Backed Commercial Paper

... The rise in securitisation has led to the growth of short-term instruments backed by the cash flows from other assets, known as asset-backed commercial paper (ABCP). Securitisation is the practice of using the cash flows from a specified asset, such as residential mortgages, car loans or commercial ...
TELEFÓNICA, S.A. (“TELEFÓNICA”) as provided in article 82 of the
TELEFÓNICA, S.A. (“TELEFÓNICA”) as provided in article 82 of the

please hate the markets
please hate the markets

... Because bull markets climb the wall of worry. It’s an old adage on Wall Street, and I learned an “adage” is considered an “adage” because they are true. In times like these, when there is no shortage of bad news or global uncertainty, contrarian investors can make good returns. Warren Buffet has oft ...
Banks lend more as economy grows
Banks lend more as economy grows

... this coming along with a 47pc annual growth in private sector company’s credit and strong consumer lending it is can be reflection of higher economic growth,” opines a senior central banker. Pakistan’s GDP growth between FY14-FY16 has averaged at 4.3pc against 3.7pc average growth between FY11-FY13. ...
Citco Bank Canada Leverage Ratio Public Disclosure for Q1 2017
Citco Bank Canada Leverage Ratio Public Disclosure for Q1 2017

... Replacement cost associated with all derivative transactions (i.e. net of eligible cash  variation margin)  ...
Understanding Debt - UConn Financial Aid
Understanding Debt - UConn Financial Aid

... exists, typically after 30 days  Credit Limit based on credit rating, FICO score Debit Card:  Connected with a bank account.  Comes directly out of the account balance.  Account balance is $100. You make a purchase for $10, now your account then has $90 remaining ...
Understanding Debt - UConn Financial Aid
Understanding Debt - UConn Financial Aid

... exists, typically after 30 days  Credit Limit based on credit rating, FICO score Debit Card:  Connected with a bank account.  Comes directly out of the account balance.  Account balance is $100. You make a purchase for $10, now your account then has $90 remaining ...
Long Term Outlook for the Economy
Long Term Outlook for the Economy

The primary objective of business financial
The primary objective of business financial

Chapter 5 File
Chapter 5 File

... integration of commercial and investment banking, and the increased importance of markets, have led to too much risk – in fact a systemic collapse, which nobody seemed to be able to predict  The 2010 Dodd Frank Act in the US introduced the socalled Volcker Rule that prohibits commercial banks from ...
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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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