scholarly journals The Effectiveness Of Credit Derivatives On Bank Holding Company Portfolio Management

2011 ◽  
Vol 4 (9) ◽  
Author(s):  
Vernie Alexander-Andrew
Keyword(s):  
Portfolio Management ◽  
Hedge Funds ◽  
Credit Derivatives ◽  
Insurance Companies ◽  
Management Tool ◽  
Holding Companies ◽  
Bank Holding Company ◽  
Market Participants ◽  
Credit Risks ◽  
Potential Customers

<p class="MsoNormal" style="text-align: justify; margin: 0in 34.2pt 0pt 0.5in;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">Since their introduction in 1991, the global credit derivatives market (excluding asset swaps) has grown, exceeding previous expectations for 2003, with an estimated market of $3,548 billion or $3.5 trillion.<span style="mso-spacerun: yes;">&nbsp; </span>Growth is expected to reach $8.2 trillion by 2006 (BBA 2004).<span style="mso-spacerun: yes;">&nbsp; </span>At the time of entry to the market in the early 1990&rsquo;s, it was also expected that the largest potential customers would be commercial banks that are the largest holders of risky debts.<span style="mso-spacerun: yes;">&nbsp; </span>In 2005 as in previous years, banks, securities houses and insurance companies still constitute the majority of market participants while hedge funds, which emerged as players on the buy side of the market in the last report, have this year also become major players on the sell side, and are expected to have a greater share of the market than securities houses by 2006 (BBA, 2002) While market risk allows opportunities for both profits and losses, credit risks only result in losses, and the objective of this research is to examine the effectiveness of credit derivatives as a risk management tool in improving the performance of portfolios for Bank Holding Companies (BHC&rsquo;s).</span></span></p>

The Effects of Innovative Instruments to Market Participants and the Financial System

2010 ◽  
pp. 204-220
Author(s):  
Demetres N. Subeniotis ◽  
Ioannis A. Tampakoudis
Keyword(s):  
Credit Risk ◽  
Financial Institutions ◽  
Portfolio Management ◽  
Credit Derivatives ◽  
Policy Makers ◽  
Market Participants ◽  
Financial Firms ◽  
Innovative Products ◽  
Risk Pricing ◽  
Credit Risk Pricing

Financial innovation triggered new ways in which financial institutions and corporates cope with credit risk since the advent of credit derivatives. A variety of new developed financial instruments, often complex products, offers significant advantages to market participants and its key players and in particular financial institutions. As statistics indicate, advanced computerization is by large the most important factor for the wide use of credit derivatives. More efficient loans portfolio management, further business expansion and confidentiality are the main benefits for banks. In addition, various non financial firms benefit from these tailor-made products. More importantly, credit derivatives are key elements of the financial systems’ stability, through increased liquidity, risk reallocation and credit risk pricing. Nevertheless, these innovative products are accompanied by significant considerations on behalf of users and policy makers. Out of which documentation, pricing, regulation and concentration are the central concerns. Market participants and regulators should face the challenges of credit derivatives market so as to boost the trouble-free intensive growth of these instruments.

scholarly journals Internal risk financing with special reference to contingency funds

2003 ◽  
Vol 6 (2) ◽  
pp. 274-288
Author(s):  
F. J. Mostert
Keyword(s):  
Special Reference ◽  
Risk Control ◽  
Insurance Companies ◽  
Equity Financing ◽  
Holding Companies ◽  
Non Profit ◽  
Operating Profit ◽  
Physical Risk ◽  
Current Operating ◽  
Modelling Approach

Enterprises can manage risks in two fundamental ways, namely by physical risk control and by risk financing. The latter comprises external and internal risk financing. As this paper focuses on the latter of these concepts, due attention is paid to the main forms of internal risk financing. Charging losses to current operating profit, arranging loan facilities and implementing equity financing programmes are different forms of internal risk financing. The nature, advantages and various types of captive insurance companies are considered as holding companies can utilise this form of internal risk financing. Special attention is paid to the use of contingency funds as a way of internal risk financing by applying a modelling approach. The conclusions reached should be valuable to business enterprises in particular, but also to non-profit organisations and individuals.

Current Hedge Fund Debates and Controversies

2017 ◽  
Author(s):  
Dianna C. Preece
Keyword(s):  
Insider Trading ◽  
Hedge Funds ◽  
Conflicts Of Interest ◽  
Hedge Fund ◽  
Securities And Exchange Commission ◽  
Active Management ◽  
Wall Street ◽  
Net Worth ◽  
Market Participants ◽  
Alternative Beta

The hedge fund industry has grown to nearly $3 trillion over the last 20 years. High-net-worth individuals and institutional investors expect high returns and low correlation with traditional asset classes in exchange for the fees paid. The standard fee structure is “2 and 20,” 2 percent of assets under management and 20 percent of profits, representing high fees for active management. Hedge funds are largely unregulated and somewhat mysterious. As a result, they are the subject of debates and controversies among market participants and policymakers alike. Debates focus on fee structures, alpha versus alternative beta, weakening returns, activist investors, and leverage. The Securities and Exchange Commission has targeted hedge fund misconduct and malfeasance, pursuing perpetrators of fraud, insider trading, and conflicts of interest in the industry. Several high-ranking Wall Street hedge fund executives have been charged with, and in some cases convicted of, breaking securities laws.

scholarly journals مدى ملائمة البيئة العراقية لإنشاء صناديق التحوط في العراق

2017 ◽  
Vol 23 (96) ◽  
pp. 128
Author(s):  
احمد نزار جميل ◽  
زهراء كريم محمد
Keyword(s):  
Hedge Funds ◽  
Stock Exchange ◽  
Economic Status ◽  
Hedge Fund ◽  
Investment Project ◽  
Research Problem ◽  
Insurance Companies ◽  
Ground Failure ◽  
Software Analysis ◽  
Set Up

The research aims to develop a framework cognitive and conceptual comprehensive research topic, and enrich the reader and the beneficiary with adequate information about and reduce the gaps in knowledge for those interested in doing and gauge what is available and is not available from the basic and necessary requirements for the establishment of hedge funds in the Iraqi environment after identifying the key variables affecting directly the subject of the search, the most research problem weakness knowledge necessary for installation of hedge funds in Iraq and how successful or embrace this idea on the ground failure and lack of knowledge of what is available from most important to create the necessary requirements. Has been selected private banks and investment companies and insurance companies listed on the Iraq Stock Exchange as a sample research being direct contact with more than other sectors, with the establishment of hedge funds requirements have included research sample (94) individuals of whom is the resolution instrument key to collect data and information as well as conduct interviews structured to the number of them was the data using statistical software analysis (SPSS), and used many of the statistical methods such as the arithmetic mean and standard deviation and test (t) and the research found a set of results perhaps the most notable is that the Iraqi economic status quo reflected negatively on the Iraqi investment arena influential all the requirements of the establishment of hedge funds economy is the basic foundation on which to all other requirements complementary and without a functioning economy Nothingness strong investment and become a modern vain for any axis or requirement last necessitating an attempt advancement of security and economic by the authorities concerned to reality by making changes in the plans and strategies related to these two variables, put the country currently precludes the success of any similar investment project to set up a hedge fund.

scholarly journals THE PROCESS APPROACH IN THE MANAGEMENT OF A MULTI-HOSPITAL, AS A TOOL IMPROVE ITS EFFICIENCY

2015 ◽  
Vol 7 (4) ◽  
pp. 84-93
Author(s):  
V N Filatov ◽  
I I Khayrullin ◽  
F N Kadyrov
Keyword(s):  
Quality Management ◽  
Performance Management ◽  
Practical Experience ◽  
Process Approach ◽  
Insurance Companies ◽  
Management Tool ◽  
Medical Organisation ◽  
And Performance ◽  
A Chain

In view of the increasing demands from stakeholders (patients, management, insurance companies, media, etc.) to ensure the quality of health care and the implementation of the program of state guarantees in the current difficult conditions of increasing importance is the efficient and performance management of medical organisation (MO). As part of these requirements has been widely discussed question of the necessity of building a system of quality management MO. Practical experience shows that building a systematic approach to quality management depends primarily on the availability of managerial competencies for managers and heads of departments MO, as well as their level of motivation, or resistance to organizational change. One of the tested and proved to be a reliable tool in the management of the quality of medical practice is a process approach. With this management tool, it is possible to present the activities of MO as a chain of interrelated processes. It defines the criteria for the quality of the product, the necessary resource and regulatory support, introduces the institute of internal and external customer, which ultimately has a positive effect on the performance indicators and efficiency MO.

Mechanism and model of credit portfolio diversification

2020 ◽  
Vol 17 (1) ◽  
pp. 78-89
Author(s):  
E. V. Orlova
Keyword(s):  
Credit Risk ◽  
Portfolio Management ◽  
System Analysis ◽  
Statistical Data ◽  
Empirical Studies ◽  
Practical Importance ◽  
Maximum Yield ◽  
Credit Risks ◽  
Credit Portfolio

Under conditions of demand for credit resources growing in Russian economy the importance of credit risks assessment and their influence on the credit organizations efficiency is increased. Empirical studies show that credit risks in the banking today are increasing nonlinearly relative to the main characteristics of the credit — the level of credit risk, credit terms, interest rate. Therefore, the formation of the most acceptable from the point of view of risk reducing of the bank’s credit portfolio is a scientifically based and practically important problem. The aim of the work is to justify the need for and develop a new mechanism for managing the bank's credit portfolio, ensuring its diversification and reduction of credit risks. The materials of the study were the statistical data of the Bank of Russia and Rosstat. Methods used in the work are: system analysis, control theory, statistical data processing and operational research. A mechanism for managing the quality of a bank credit portfolio is proposed, featuring a combination of quantitative and qualitative criteria for assessing the quality of the credit portfolio and allow to monitor of the credit portfolio, to make decisions on approving or rejecting a credit application in accordance with the permissible values of risk factors. A model has been developed for optimizing the structure of the credit portfolio, which makes it possible to form an optimal ratio of long-term and short-term credits, ensuring the maximum yield of the credit portfolio taking into account credit risk in the context of various credit policy types. A practical importance of the investigation are the positive results of the implementation of the proposed mechanism and model of credit portfolio management into the credit organization, ensuring the growth of its profitability and promoting an increase in competitiveness.

Asset Securitization, Securitization Recourse, and Information Uncertainty

2011 ◽  
Vol 86 (2) ◽  
pp. 541-568 ◽  
Author(s):  
Mei Cheng ◽  
Dan S. Dhaliwal ◽  
Monica Neamtiu
Keyword(s):  
Analyst Forecast ◽  
Financial Assets ◽  
Asset Securitization ◽  
Information Uncertainty ◽  
Forecast Dispersion ◽  
Holding Companies ◽  
Risk Transfer ◽  
Market Participants ◽  
Asset Backed Securities ◽  
Analyst Forecast Dispersion

ABSTRACT: In this study, we examine some of the consequences of asset securitization. Specifically, using a sample of bank holding companies, we investigate whether the difficulty in assessing the true extent of risk transfer, between securitizing banks and investors in asset-backed securities, affects bank information uncertainty. We find that when market participants have a greater difficulty in estimating risk transfer, banks face greater information uncertainty (i.e., larger bid-ask spreads and analyst forecast dispersion). In addition, we find that this effect is mitigated for banks that operate in a higher quality information environment. We also find that banks that securitize financial assets have higher spreads and analyst forecast dispersion as compared to non-securitizing banks.

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