Since its inception, the market for credit derivatives has shown impressive growth and has hit a volume of more than $54 trillion in 2008. Credit derivatives are bilateral financial contracts that seek to transfer defined credit risks in a credit product or bunch of credit products to a counterparty. They have fundamentally changed the way banks price, manage, transact, originate, distribute and account for credit risk; they are being used for risk management and hedging as well as for speculation, balance-sheet management and regulatory capital purposes. Long celebrated as a way for banks to diffuse their risks, credit derivatives have instead multiplied them as they encouraged banks and other financial firms to take on riskier loans than they should have and exposed a much wider array of financial firms to the risk of default. In this book, the author carefully explains the basics of credit risk and expands on the different types and applications of credit derivatives.
A practical guide to counterparty risk management and credit value adjustment from a leading credit practitioner Since the collapse of Lehman Brothers and the resultant realization of extensive counterparty risk across the global financial markets, the subject of counterparty risk has become an unavoidable issue for every financial institution. This book explains the emergence of counterparty risk and how financial institutions are developing capabilities for valuing it. It also covers portfolio management and hedging of credit value adjustment, debit value adjustment, and wrong-way counterparty risks. In addition, the book addresses the design and benefits of central clearing, a recent development in attempts to control the rapid growth of counterparty risk. This uniquely practical resource serves as an invaluable guide for market practitioners, policy makers, academics, and students.
Klassisch stellte das Eingehen von Kreditrisiken ein ´´Buy and Hold´´ Investment dar, da Banken, sobald sie einen Kredit vergeben hatten, das Risiko eines Ausfalles bis zum Laufzeitende oder bis zur Rückzahlung zu tragen hatten. Erst mit der Möglichkeit Forderungen verbriefen zu können und mit dem Entstehen von Kreditderivaten veränderten sich die Möglichkeiten des Kreditrisikomanagements drastisch. Nicht nur, dass Kreditderivate ein besseres Management von originärem Kreditgeschäft ermöglichen und Verbriefungen von Kreditforderungen zur Eigenmittelentlastung und zur Steigerung des Return on Equity beitragen, sondern die Assetklasse Stuctured Credit bietet auch jedem Investor die Möglichkeit gezielt und dem jeweiligen Risiko- Appetit entsprechend Kreditrisiken einzugehen. In dieser Arbeit soll dem Leser ein Überblick über die Assetklasse Structured Credit gewährt werden, wobei der Schwerpunkt einerseits auf der Handhabung der einzelnen Produkte liegt und andererseits auf Structured Credit als ein Element im Bankbuch zur Diversifizierung eingegangen werden.
It isn´t that Abby Carson can´t do her schoolwork. She just doesn´t like doing it. And in February a warning letter arrives at her home. Abby will have to repeat sixth gradeunless she meets some specific conditions, including taking on an extra-credit project to find a pen pal in a distant country. Seems simple enough. But when Abby´s first letter arrives at a small school in Afghanistan, the village elders agree that any letters going back to America must be written well. In English. And the only qualified student is a boy, Sadeed Bayat. Except in this village, it is not proper for a boy to correspond with a girl. So Sadeed´s younger sister will write the letters. Except she knows hardly any English. So Sadeed must write the letters. For his sister to sign. But what about the villagers who believe that girls should not be anywhere near a school? And what about those who believe that any contact with Americans is . . . unhealthy? Not so simple. But as letters flow back and forthbetween the prairies of Illinois and the mountains of central Asia, across cultural and religious divides, through the minefields of different lifestyles and traditionsa small group of children begin to speak and listen to one another. And in just a few short weeks, they make important discoveries about their communities, about their world, and most of all, about themselves.
Dealing with the law relating to documentary credits in both an English and international context, this book provides information on the law of documentary credits; and an examination of the fundamental concepts of the documentary credit regime including: the principle of autonomy; the doctrine of strict compliance; and the ´fraud exception´.
This publication analyzes policy measures taken to curb the private sector credit growth in the period 2003-2008. The work evaluates the excessiveness of the credit development in Central and Eastern Europe (CEE) with respect to macroeconomic fundamentals. Based on the results, menu of policy options to counter adverse effects of the credit boom is reviewed. The analysis is based on a survey performed on eleven central banks in the region. The findings reveal high intensity of policy interventions. Deriving from the country experiences, we argue that in order to eliminate adverse impacts, policy measures should include combination of monetary and macroprudential tools with special emphasis on domestic environment and role of foreign banks in the region.
Credit is associated with all processes of social reproduction, and the credit market became a component of any economic system. Credit system of any state is constantly changing. A question of theory and practice of credit are constantly in the spotlight not only professionals but also the general public without losing their relevance in all periods. The credit sector related and depends on the system of social reproduction in the economy and actively influences it. In particular, the development of credit relations between them and the credit market turnover contributes to cost savings increases and activates processes of consolidation and centralization of capital, facilitates the redistribution of money and capital in the economy. The credit market has not only a positive impact on economics, but also may contribute to exacerbation of the crisis.Credit relations and credit markets are not stable and unchanged. Credit systems, types of credit providers and credit products are an evolution in the credit markets.The concept, role and factors of credit markets,types and characteristics of credit provider and products are studied in this textbook