ICRA Indonesia Comment June 2013 Minimum Capital Provisioning for Credit Risk – a Comparative Study of Basel I and Basel II Contact: Pradnya Desai Manager– Rating Analyst +62 21 576 1516 desai.pradnya@icraindonesia.com Drafted in 1988 and 2004 respectively, Basel I and II have, through quantitative and technical benchmarks, helped develop a level playing field in the banking The “Basel Committee on Banking Supervision” (BCBS) is comprised of the central banks and regulatory
Words: 3956 - Pages: 16
the debt financing and $6 billion in the bridge loans and the another $1.5 billion of credit lines. FCX’s two equity related transactions were led by JP Morgan and Merrill Lynch as joint book-runners. Big risk happened to the FCX interests and these two firms. FCX’s book running and M&A were controlled by the two firms which facilitated M&A transaction. Than, the two firms equally shared fees and league table credit for these transactions. It is a risker way to commitment to provide bridge loans. 2
Words: 653 - Pages: 3
miss the chance to improve your rating and save thousands of dollars in interest payments. BY LUCINDA COULTER S teve Diamond hoped his second attempt at being an owner-operator would work. But in 2009, the 54-year-old native resident of Mansfield, Ohio, had to scramble to keep a 2003 Freightliner Columbia. Shortly after he purchased the truck through his carrier, its S1,400 monthly payment got to be too much. It didn't help that he was trying to pay off a credit card balance that had grown at
Words: 2169 - Pages: 9
Journal of Financial Economics 105 (2012) 607–621 Contents lists available at SciVerse ScienceDirect Journal of Financial Economics journal homepage: www.elsevier.com/locate/jfec Does it matter who pays for bond ratings? Historical evidence$ John (Xuefeng) Jiang a,n, Mary Harris Stanford b, Yuan Xie c a Eli Broad College of Business, Michigan State University, N252 Business Complex, East Lansing, MI 48824, USA M. J. Neeley School of Business, Texas Christian University, Fort Worth
Words: 13947 - Pages: 56
Topic Financial crises of 2008 Presented to presented by Date Table of contents Introduction causes and factors US government actions to solve the crises Analysis and opinion regarding the likelihood of another financial crisis Introduction: The current financial crisis started in the US housing market in 2007. The crisis spread across the whole world and brutally
Words: 1273 - Pages: 6
Evaluate of the Merton Model for credit risk analysis The KMV-Merton model proposed by Robert Merton(1974)is an application of classic option pricing theory and as a logical extension of the Black-Scholes(1973)option pricing framework.Merton’s approach assess the credit risk of a firm by characterizing the firm’s equity as a call option on the underling value of the firm with a strike price equal to the face value of the firm’s debt and a time-to-maturity of T.By put-call parity,the value of the
Words: 605 - Pages: 3
prompt the leadership to solicit credit to resolve internal or external obligations. As a result, Campello Graham & Harvey (2010) found that during the financial crisis, 86% of constrained United States firms said that they bypassed attractive investments due to difficulties in raising external finance. In contrast, only 44% of unconstrained firms avoided such investments. Creditworthiness The organization develops creditworthiness based on debts paid and minimum credit established with the lenders
Words: 2203 - Pages: 9
[pic] WorldCom Case Study FINC 621, Summer 2015 by Hailun Cao Mohammed Altuwaijri Papamagatte Diagne Qian Dou David Ballantine Yanchao Wu Strategic Analysis – Hailun Cao Bernie Ebbers, the chief executive officer, focused on acquisition business strategy. Major Acquisitions includes Advanced Telecommunications Corporation, IDB Communications group, Metromedia Communications Corporation and Resurgens, and Williams Telecommunications group (WilTel)
Words: 4227 - Pages: 17
Consumer and commercial credit management By Robert Hartzell Cole Loan Portfolio Management - OCC of understanding or poor communications between credit management and ... commercial, real estate, consumer, international, and health care). Limits may also be placed on individual loan products within a loan category. For example, although a www.occ.gov/publications/publications-by-type/... S -B R Mind Your Commercial Credit Score Mind Your Commercial Credit Score By Cyndia Zwahlen TSpecial
Words: 1242 - Pages: 5
No. 12/2 July 2012 Rabobank Working Paper Series Sovereign credit ratings An assessment of sovereign ratings provided by Moody’s, S&P and Fitch Authors: Joep Pennartz, Jan Pieter Snoeij The views expressed in this paper are their own and not necessarily those of Rabobank. Contact: Joep Pennartz and Jan Pieter Snoeij wrote this working paper as a part of an internship at Rabobank. For further information please contact their supervisor at Rabobank’s Economic Research Department: S.A
Words: 9256 - Pages: 38
