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When are consumer loans collateralized in emerging markets
When are consumer loans collateralized in emerging markets

... an increasing demand of loans from the retail sector. Lending volumes have grown substantially since 1990 and although state owned enterprises are still the dominant users of credit, their share in bank credit fell from 86% in 1991-1992 to 58% in December 2005 due to growing loan demand from retail ...
Gambling with Other People`s Money
Gambling with Other People`s Money

... almost always rescued their bondholders and creditors. These policies have created incentives both to borrow and to lend recklessly. When large financial institutions get in trouble, equity holders are typically wiped out or made to suffer significant losses when share values plummet. The punishment ...
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The history of Fannie and Freddie points to risks from both populism

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... Decrease in interest receivable Increase in prepaid expenses and other assets Decrease in interest payable (Decrease) increase in other liabilities and accrued expenses Decrease in payable to affiliate Increase (decrease) in management fee payable ...
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DT - European Parliament

... Why did investors decide on a massive scale to abandon a product that withstood the crisis reasonably well in Europe? And, even more intriguing, why did the EU market not recover (whereas the US market did)? The explanation of stigma on securitisation is far from satisfying, since we are talking abo ...
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Zvi NBER WORKING PAPER SERIES

Investment and Spending Policy Community Colleges of New
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The Rise of Corporate Savings
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... compared to the 500 or so for which an active CDS market exists. It is estimated that the debt issuance by these 34,000 firms exceeds that o f the top 500 issuers. It comprises, in the main, privately issued debt, provided primarily by banks. Relatively little o f this debt is traded; hence price in ...
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Information on risk, own funds and capital requirements

... body, its objectives and any relevant targets set out in that policy, and the extent to which these objectives and targets have been achieved Personnel Committee of Supervisory Board selects Board Members in the way that general composition of Board of Management possesses practical experience relat ...
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SIFMA AMG Submits Comments to the Basel Committee on Banking
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... liquidity,” so that it can quickly be monetized to pay for any client losses, if needed.2 Moreover, the segregation rules established by the Commodity Futures Trading Commission ensure that (1) the client margin is held separately from, and accounted separately from, the clearing firm’s other assets ...
Monthly Investment Commentary
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... reasonable expenses are necessary for investment success. We are willing to pay higher fees up to a point. But, in doing so we must be convinced that we are accessing managers with a skill level that can not only deliver on the risk management expectations (which have to be realistic) but also can d ...
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... specialty financial services company. Entaire is a private life insurance premium finance lender providing fully collateralized, nonmortality-based loans to commercial borrowers through its principal subsidiary, Global One. Entaire lends primarily to small businesses, with all loans collateralized b ...
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... as near to one as can be achieved with existing securities—which, for a US dollar consumer, is a laddered portfolio of Treasury Inflation-Protected Securities (TIPS), with cash flows matched to the investor’s planned consumption—then the recalculated annuity “payment” or spending amount in each peri ...
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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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