What is the Risk of European Sovereign Debt Defaults? Fiscal
... sovereign debt crisis in Europe surfaced. Systematically large prediction errors may due to mispricing of risk or may be attributable to expectations of a future decline in fundamentals. Our analysis may help address a number of questions. Was risk in many markets (e.g. PIIGS) “underpriced” during ...
... sovereign debt crisis in Europe surfaced. Systematically large prediction errors may due to mispricing of risk or may be attributable to expectations of a future decline in fundamentals. Our analysis may help address a number of questions. Was risk in many markets (e.g. PIIGS) “underpriced” during ...
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... The most important aspect of ratio analysis is the judgment used when interpreting the results to reach an overall conclusion concerning a firm’s financial position. The analyst should be aware of, and include in the interpretation, the fact that: (1) large firms with many different divisions are di ...
... The most important aspect of ratio analysis is the judgment used when interpreting the results to reach an overall conclusion concerning a firm’s financial position. The analyst should be aware of, and include in the interpretation, the fact that: (1) large firms with many different divisions are di ...
waste connections, inc.
... the Company recorded the fair value of these interest rate protection agreements as an obligation of $3,570, net of taxes of $2,370, with an equal amount recorded as an unrealized loss in other comprehensive income. The adoption of SFAS 133 did not have a material effect on the Company's results of ...
... the Company recorded the fair value of these interest rate protection agreements as an obligation of $3,570, net of taxes of $2,370, with an equal amount recorded as an unrealized loss in other comprehensive income. The adoption of SFAS 133 did not have a material effect on the Company's results of ...
Lesson 4 A cost ofcapital
... The cost of new common stock is higher than the cost of retained earnings because of flotation costs. Flotation costs : selling and distribution costs (such as sales commissions) for the new securities. Weighted Average Cost of Capital We can use the individual costs of capital that we have computed ...
... The cost of new common stock is higher than the cost of retained earnings because of flotation costs. Flotation costs : selling and distribution costs (such as sales commissions) for the new securities. Weighted Average Cost of Capital We can use the individual costs of capital that we have computed ...
8 Some Lessons from the Argentine Crisis: A Fund Staff
... macroeconomic situation, rather than from institutional or regulatory weaknesses. Indeed, before Argentina was forced into default, the banking system was strong as conventionally measured. Banks had strong capital ratios and liquid balance sheets. There had not been any asset price or credit bubble ...
... macroeconomic situation, rather than from institutional or regulatory weaknesses. Indeed, before Argentina was forced into default, the banking system was strong as conventionally measured. Banks had strong capital ratios and liquid balance sheets. There had not been any asset price or credit bubble ...
The shadow economy: a relevant factor for investment decisions in selected European Union
... information about tax evasion and about the shadow economy as a whole. The difficulties come with the selection of appropriate participants and their willingness to collaborate. According to Enste and Schneider (1998) direct methods are, in theory, reliable and simple, but in practice, less reliable ...
... information about tax evasion and about the shadow economy as a whole. The difficulties come with the selection of appropriate participants and their willingness to collaborate. According to Enste and Schneider (1998) direct methods are, in theory, reliable and simple, but in practice, less reliable ...
Default, rescheduling and inflation : debt crisis in Spain
... currency debasement and inflation tax as a means to expedite repudiation of domestic debt. This mechanism of currency debasement had been used since the First World War and, in particular, during the Franco Regime. Inflation tax solved debt crisis because inflation reduced real value of existing sto ...
... currency debasement and inflation tax as a means to expedite repudiation of domestic debt. This mechanism of currency debasement had been used since the First World War and, in particular, during the Franco Regime. Inflation tax solved debt crisis because inflation reduced real value of existing sto ...
The Life-Cycle Effects of House Price Changes
... homes is not large enough to compensate them for the rise in their lifetime housing costs. House price appreciation also lowers a renter’s lifetime welfare, since he suffers from higher costs in acquiring housing services and yet does not receive any housing wealth gains. Only old homeowners receiv ...
... homes is not large enough to compensate them for the rise in their lifetime housing costs. House price appreciation also lowers a renter’s lifetime welfare, since he suffers from higher costs in acquiring housing services and yet does not receive any housing wealth gains. Only old homeowners receiv ...
class10 - Duke People
... An unlevered firm has 10 million shares outstanding, each with a market price of $20 and a beta of 1.0. The firm is considering issuing $50 million of 10% debt and using the proceeds to pay a dividend to shareholders. What effect will this capital structure change have on the value of the firm, the ...
... An unlevered firm has 10 million shares outstanding, each with a market price of $20 and a beta of 1.0. The firm is considering issuing $50 million of 10% debt and using the proceeds to pay a dividend to shareholders. What effect will this capital structure change have on the value of the firm, the ...
Hedging and Speculating with Interest Rate Swaps
... interest rate derivatives usage over time and to compare it to the variation in the cross section. Using our hand-collected data covering interest rate swap activity for 1,854 firms for up to 10 years, we find that the time-series variation in swap usage is of similar magnitude as the cross-sectiona ...
... interest rate derivatives usage over time and to compare it to the variation in the cross section. Using our hand-collected data covering interest rate swap activity for 1,854 firms for up to 10 years, we find that the time-series variation in swap usage is of similar magnitude as the cross-sectiona ...
The DuPont equation is an expression which breaks
... Financial leverage refers to the amount of debt that a company utilizes to finance its operations, as compared with the amount of equity that the company utilizes. As was the case ...
... Financial leverage refers to the amount of debt that a company utilizes to finance its operations, as compared with the amount of equity that the company utilizes. As was the case ...
Subprime mortgage lending has grown tremendously
... home purchase loans in which the down payment is less than 20% of the loan and the lender has a first lien on the home. (Interest rates for home equity loans were not available.) As expected, the mean subprime mortgage interest rate is much higher than the mean prime mortgage rate. Over the 1998–200 ...
... home purchase loans in which the down payment is less than 20% of the loan and the lender has a first lien on the home. (Interest rates for home equity loans were not available.) As expected, the mean subprime mortgage interest rate is much higher than the mean prime mortgage rate. Over the 1998–200 ...
NBER WORKING PAPER SERIES CREDIT FRICTIONS AND
... bankruptcy costs that increase the real cost of servicing debt at date 2. In this case, the competitive equilibrium yields two mutually-consistent outcomes. On one hand, there is bankruptcy, that is firms become unable to repay their debt. On the other hand, the equilibrium relative price of nontrad ...
... bankruptcy costs that increase the real cost of servicing debt at date 2. In this case, the competitive equilibrium yields two mutually-consistent outcomes. On one hand, there is bankruptcy, that is firms become unable to repay their debt. On the other hand, the equilibrium relative price of nontrad ...
Growth and Productivity: the role of Government Debt
... 2009, the two groups decoupled, with the risk of periphery countries relative to core ones increasing rapidly. The developing periphery crisis caused an increased risk of the crisis’ transmission among periphery countries, as well as from periphery to core countries since early 2010; ii) since Augus ...
... 2009, the two groups decoupled, with the risk of periphery countries relative to core ones increasing rapidly. The developing periphery crisis caused an increased risk of the crisis’ transmission among periphery countries, as well as from periphery to core countries since early 2010; ii) since Augus ...
Sovereign Risk, Currency Risk, and Corporate Balance Sheets.
... Association, Chris Sims (Sims, 2013) writes “Nominal sovereign debt promises only future payments of government paper, which is always available... Obviously outright default on nominal debt is much less likely than default on real debt... Nominal debt is (almost) non-defaultable.” In our previous w ...
... Association, Chris Sims (Sims, 2013) writes “Nominal sovereign debt promises only future payments of government paper, which is always available... Obviously outright default on nominal debt is much less likely than default on real debt... Nominal debt is (almost) non-defaultable.” In our previous w ...
Default, Debt Maturity and Investment Dynamics
... depends on actions of the firm in future periods. But the firm cannot commit to any particular path of actions. In particular, actions leading to a decline in the rate of investment will increase the firms’ default likelihood, and thus reduce the value of the claims of existing creditors. As a resu ...
... depends on actions of the firm in future periods. But the firm cannot commit to any particular path of actions. In particular, actions leading to a decline in the rate of investment will increase the firms’ default likelihood, and thus reduce the value of the claims of existing creditors. As a resu ...
Real Economy - Dipartimento di Economia e Finanza
... Negative Shocks: -Capital flows away from more speculative investment ...
... Negative Shocks: -Capital flows away from more speculative investment ...
An Introduction - The Mortgage and Insurance Bureau
... insurance and The Mortgage & Insurance Bureau can arrange cover and ensure that your policy is reviewed on an ongoing basis to ensure it remains the most suitable for your needs. As well as protecting your home we are able to provide a range of policies to protect you and your commitments. Clearly i ...
... insurance and The Mortgage & Insurance Bureau can arrange cover and ensure that your policy is reviewed on an ongoing basis to ensure it remains the most suitable for your needs. As well as protecting your home we are able to provide a range of policies to protect you and your commitments. Clearly i ...
Jamaica: Fifth Review Under the Extended Fund
... billion at end-August, covering about 4 months of next year’s imports of goods and services, while net international reserves had risen to US$2.1 billion. With large debt repayments coming due in October 2014 and June and July 2015, by end-2015, reserves are projected to be broadly back on the path ...
... billion at end-August, covering about 4 months of next year’s imports of goods and services, while net international reserves had risen to US$2.1 billion. With large debt repayments coming due in October 2014 and June and July 2015, by end-2015, reserves are projected to be broadly back on the path ...
Defaultable Debt, Interest Rates, and the Current Account
... On the other hand, if the good state is expected to persist, this lowers the expected probability of default and is associated with a favorable shift in the interest‐rate schedule. To generate a positive correlation between the current account and interest rates we need the effect of the shift of ...
... On the other hand, if the good state is expected to persist, this lowers the expected probability of default and is associated with a favorable shift in the interest‐rate schedule. To generate a positive correlation between the current account and interest rates we need the effect of the shift of ...
Explaining households` economic hardship
... households‟ financial strategy. Households in their financial decisions try to balance between their basic needs which are influenced by age, life cycle and size of the family and their expenditure and saving capabilities determined by income and wealth. Households‟ living standard and consumption l ...
... households‟ financial strategy. Households in their financial decisions try to balance between their basic needs which are influenced by age, life cycle and size of the family and their expenditure and saving capabilities determined by income and wealth. Households‟ living standard and consumption l ...
Household debt
Household debt is defined as the amount of money that all adults in the household owe financial institutions. It includes consumer debt and mortgage loans. A significant rise in the level of this debt coincides historically with many severe economic crises and was a cause of the U.S. and subsequent European economic crises of 2007–2012. Several economists have argued that lowering this debt is essential to economic recovery in the U.S. and selected Eurozone countries.