www.pwc.com/journal The Journal Capital management in banking: The way forward Looking ahead, the future for banking is becoming clearer. It is a future of more capital, more liquidity and less risk. In this article we look into Basel III and the challenges firms will face as these changes come into operation. December 2010 The future of banking is becoming clearer. It is a future of more capital, more liquidity and less risk. And, inevitably, it is a future with lower returns on capital
Words: 2837 - Pages: 12
Journal of Economic Perspectives—Volume 24, Number 1—Winter 2010—Pages 93–118 Did Fair-Value Accounting Contribute to the Financial Crisis? Christian Laux and Christian Leuz I n its pure form, fair-value accounting involves reporting assets and liabilities on the balance sheet at fair value and recognizing changes in fair value as gains and losses in the income statement. When market prices are used to determine fair value, fair-value accounting is also called mark-to-market accounting
Words: 15964 - Pages: 64
Solutions for exchange rate policy of transition economy of Vietnam Dissertation zur Erlangung des Grades Doktor der Wirtschaftswissenschaft (Doctor rerum politicarum, Dr. rer. pol.) der Juristischen und Wirtschaftswissenschaftlichen Fakultät der Martin-Luther-Universität Halle-Wittenberg vorgelegt von M.A. Mai Thu Hien geb. am 23. August 1976 in Hanoi, Vietnam Gutachter: 1. Prof. Dr. Dr. h.c. Rüdiger Pohl, Martin-Luther-Universität Halle-Wittenberg 2. Prof. Dr. Martin Klein, Martin-Luther-Universität
Words: 97616 - Pages: 391
Finance 202 Alex Low – Course Notes Chapter 10 – bond prices and yields 10.1 Bond Characteristics Bond: A security that obligates the issure to make specific payments to the holder over time. Face value/par value: The payment at which is made at maturity to the bond holder Coupon rate: A bonds annual interest payment per dollar of par value Zero coupon bonds: pays no coupons, sells at discount, provides only payment of par value at maturity. If a bond is purchased between
Words: 8410 - Pages: 34
2: "Which of the following is an agreement to buy or sell an asset at a fixed date in the future, for a fixed price? 1. Swaps 2. Futures 3. Forwards 4. Warrant 2: "_ Are derived by continuously computing the average of the most recent n day’s closing prices. 1. Moving Average 2. Quotes 3. Commodities plots 4. Plots 2: "What is the conversion factor of a US Treasury bond if securities coupon is 6 percent 1. 1 2. 2 3. 3 4. 6 2: "Which of
Words: 14382 - Pages: 58
Cheryl Mew FINS2624 – Portfolio Management Semester 1, 2011 L ECTURE 1 – B OND PRICING W HAT IS A BOND? A bond is a claim on some fixed future cash flows. A commonwealth government bond (CGB) is a bond which pays semi-annual coupons, in which the maturity date/ coupon payment date is on the 15th of every month. A zero coupon bond is a bond with no coupons. The important information of a bond: 1. 2. 3. 4. 5. 6. Transaction date: T Settlement date:T+2 Coupon payment dates
Words: 14579 - Pages: 59
THE JOURNAL OF FINANCE • VOL. LVI, NO. 4 • AUGUST 2001 Investor Psychology and Asset Pricing DAVID HIRSHLEIFER* ABSTRACT The basic paradigm of asset pricing is in vibrant f lux. The purely rational approach is being subsumed by a broader approach based upon the psychology of investors. In this approach, security expected returns are determined by both risk and misvaluation. This survey sketches a framework for understanding decision biases, evaluates the a priori arguments and the capital
Words: 33427 - Pages: 134
should be addressed by email to the author(s). 1 Thanks to Jeni Klugman for discussion and comments and to Ginette Azcona for help with data. Abstract The paper looks at the experience of advanced economies in dealing with employment volatility. It examines in detail the impact of labour market institutions on equilibrium unemployment and the p ossible le ssons f or e merging ma rket e conomies tr ying to d esign p olicy f or d ealing w ith unemployment and a wider, growing demand for
Words: 19075 - Pages: 77
real-world economics review, issue no. 58 The Eurozone crisis: Looking through the financial fog with Keynesian glasses Jorge Buzaglo [Sweden] Copyright: Jorge Buzaglo, 2011 You may post comments on this paper at http://rwer.wordpress.com/2011/12/12/rwer-issue-58-jorge-buzaglo/ It is easy to become confused about what is really happening to the European economies. The media are totally focused on financial surface phenomena. Attention is given only to the developments in the financial
Words: 2998 - Pages: 12
UV0402 Rev. Apr. 8, 2014 APPLYING THE CAPITAL ASSET PRICING MODEL This note discusses how some of the most financially sophisticated companies and financial advisers estimate the cost of equity capital. We particularly focus on areas where finance theory is silent or ambiguous, and practitioners are left to their own devices. Conclusions are based on interviews with two groups: (1) well-regarded firms ranked by peer companies as industry leaders and (2) a sample of 11 of the most active
Words: 4510 - Pages: 19
