for ways to transfer risk in financial markets. Although the financial innovations have only been used for decades, activity in credit derivations has grown rapidly. According to the Bank for International Settlement, the credit derivatives market reaches $21 trillion in 2014, and the main players for credit derivatives are investment banks, corporations or insurance companies. (Bank for International Settlement, 2014) Credit derivatives are relatively complex financial instrument, since it utilizes
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section, the author gives their opinion on the practice of M2M, and if it is still a viable accounting principle. Mark-to-Market Defined In the private sector all accounting principles and standards are gathered together and organized by the Financial Accounting Standards Board (FASB). They are then put into what is called the FASB Codification. The FASB Codification (2015) defines M2M as a valuation method that uses current market prices and other useful information that is supplied by market
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partnership that employs speculative techniques in the hope of obtaining large capital gains.” In other words, hedge fund uses its intricate financial technologies with the small amount of money to make the greatest profits as possible by investing and selling securities at the appropriate moment. Its foundation lies on the purpose to seek the absolute financial profits regardless of the economy situation. It can be seen as a zero-sum game since it either makes or lose huge amount of money in the market
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Greece – Crisis and Solutions Paper International Economics Greece - Crisis and Solutions June 25, 2013 Content 1. Introduction………………………………………………………………………………………………………2 2. Greece joining the Eurozone…...............................................................................3 3. Budget structure that lead to the crisis…………………………………………………………………6 4. Supporting and rescue measures…………………………………………………………………………9 5. Conclusion……………………………………………………………………………………………………….11 6. References……………………………………………
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The bond market is a less known in the financial world than the share market, but it doesn’t mean that it is not as important as the share one in terms of volumes. The main reason may be that the Governments are a big part of this market. Because unlike a share, a bond is a debt contract not a proportion of capital. Usually, the international bond market is divided in three entities: the domestic bonds, the foreign bonds and the Eurobonds. The Eurobonds segment of the international market is, according
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1991 Indian economic crisis By 1985, India had started having balance of payments problems. By the end of 1990, it was in a serious economic crisis. The government was close to default, its central bank had refused new credit and foreign exchange reserves had been reduced to such a point that India could barely finance three weeks’ worth of imports which lead the Indian government to airlift national gold reserves as a pledge to the International Monetary Fund (IMF) in exchange for a loan to cover
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indicate that insurers’ stock market performance is linked to the characteristic of industry events and specific firm characteristics rather than to the success of ERM. In this study the 2007–2008 subprime mortgage and financial market crisis was found unique compared to other industry events. The study recommends further research on the methodology of determining the value of ERM from the joint perspective of finance theories and management theories.
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CHAPTER I INTRODUCTION 1.1 Background Basel Capital accord is a capital adequacy framework developed by the Basel committee. In 1988, the Basel Committee decided to introduce a capital measurement system commonly referred to as the Basel Capital Accord. This system provided for the implementation of a credit risk measurement framework with a minimum capital requirement of 8% on banks Risk Weighted Assets (RWA). The 1988 framework is also known as "Basel – I". Since 1988, this framework
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the euro single currency when it did because its economy was not ready to form a monetary union with others in the club. Trouble in the public sector, problems with taxes, structural challenges and downfall of tourism and shipping due to economic crisis made it next to impossible for Greece to settle down being a part of euro zone. Not only was Greece in a troublesome state, but even all the European leaders are dealing with growing debt problems that are rattling investors worldwide; as everything
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2007-2010 global financial crisis in one way or another. While there have been numerous studies that have explored the causes behind such global financial crisis, this subject proves to be a rather significant matter as it is still an ongoing crisis that had hit the Western countries directly causing massive layoffs. Indeed, many people have predicted such crisis would require a substantial amount of time for it to subdue. However, we do not know just how bad the current credit crisis will get. Therefore
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