Long-Term Capital Management Revisited: Accommodations for International Markets

2006 ◽  
Author(s):  
Jill Wetmore
2018 ◽  
pp. 49-68 ◽  
Author(s):  
M. E. Mamonov

Our analysis documents that the existence of hidden “holes” in the capital of not yet failed banks - while creating intertemporal pressure on the actual level of capital - leads to changing of maturity of loans supplied rather than to contracting of their volume. Long-term loans decrease, whereas short-term loans rise - and, what is most remarkably, by approximately the same amounts. Standardly, the higher the maturity of loans the higher the credit risk and, thus, the more loan loss reserves (LLP) banks are forced to create, increasing the pressure on capital. Banks that already hide “holes” in the capital, but have not yet faced with license withdrawal, must possess strong incentives to shorten the maturity of supplied loans. On the one hand, it raises the turnovers of LLP and facilitates the flexibility of capital management; on the other hand, it allows increasing the speed of shifting of attracted deposits to loans to related parties in domestic or foreign jurisdictions. This enlarges the potential size of ex post revealed “hole” in the capital and, therefore, allows us to assume that not every loan might be viewed as a good for the economy: excessive short-term and insufficient long-term loans can produce the source for future losses.


CFA Digest ◽  
2000 ◽  
Vol 30 (1) ◽  
pp. 76-78
Author(s):  
David B. Miyazaki

Quipukamayoc ◽  
2014 ◽  
Vol 6 (12) ◽  
pp. 13
Author(s):  
Pascual Chávez Ackermann

Desde los primeros días de junio, han ocurrido una serie de extraordinarios acontecimientos en los mercados financieros mundiales que, si se analizan cada uno de ellos por separado, no parecen tener mayor significado. Pero, si estos hechos se consideran como parte de un solo proceso global, entonces no podemos llegar sino a la conclusión de que ya ocurrió a principios de junio otro desastre financiero, parecido a la quiebra en setiembre de 1998 del fondo financiero de apuestas especulativas LTCM (Long Term Capital Management), y que se pusieron en marcha una serie de esfuerzos de alto nivel para ocultar la realidad o para administrar la crisis, todo ello para prevenir que cunda el pánico en los mercados financieros internacionales. En un discurso pronunciado ante la Casa Mansión en Londres el 10 de junio, el gobernador del Banco de Inglaterra, Eddie George, recalcó cuán cerca había llegado el mundo a la desintegración financiera en el otoño de 1998. "La última vez que estuvimos aquí para esta espléndida ocasión, yo sugerí que estábamos viviendo en un ambiente económico y financiero internacional peligroso. Estas fueron palabras fuertes para un banquero central -pero quizás no lo suficientemente fuerte-. Ese ambiente rápidamente empeoró en el transcurso del otoño, y para las fechas de la reunión anual del FMI (Fondo Monetario Internacional), en octubre, ya todo mundo hablaba de una desintegración financiera global y una próxima recesión mundial, lo que no era simplemente hipérbole periodística".


2020 ◽  
Vol 5 (12) ◽  
pp. 147-152
Author(s):  
G. L. KRASNYANSKY ◽  
◽  
A. E. SARYCHEV ◽  

The article highlights the changes in the global thermal coal market associated with the consequences of the COVID-19 pandemic, examines the dynamics of import volumes by key countries - consumers of thermal coal and export volumes by major exporting countries, as well as price changes in the main international markets. Analysis of changes in the global steam coal market caused by the consequences of the COVID-19 pandemic and a number of other objective factors demonstrates a change in the competitive positions of the largest exporting countries, which may have long-term consequences. In addition, the article examines the continuing trend of dividing the thermal coal market into the high-calorie and low-calorie thermal coal markets, which have multidirectional development prospects.


2019 ◽  
pp. 28-55
Author(s):  
Hyun Song Shin

An example of a hedge fund illustrates a long-short strategy that maximises expected returns subject to a Value-at-Risk strategy. Balance sheet capacity depends on the measured volatility of asset returns and the book equity of the long-short hedge fund. The principles are illustrated by the case of Long Term Capital Management (LTCM).


2015 ◽  
Vol 36 (3) ◽  
pp. 46-56 ◽  
Author(s):  
Sonia Taneja ◽  
Scott S. Sewell ◽  
Randall Y. Odom

Purpose – The purpose of this paper is to develop a model that identifies the strategies that have the ability to create a culture of employee engagement for global managers in making the tactical adaptations necessary to develop and implement global strategy in an increasingly complex and dynamic marketplace. Design/methodology/approach – The authors focused on the global managers charged with the responsibilities of developing and creating a culture of employee engagement as an important strategy for the competitive advantage of organizations. Findings – Employee engagement should be viewed as a long-term commitment between the employees and the organization, each supporting the other in an era of increasing international operations. In fact, employee engagement is an important strategy for long-term organizational sustainability in international markets. Practical implications – Employee engagement is critical to the management and retention of talented employees in the organization. It can be achieved by managing global mobility in increasingly complex global workplaces; talent so that it enhances business results; training and development; rewards, recognitions and engagement; manager/employee communication and interaction; and leadership and development. Originality/value – In today’s global society, it is critical for organizational leaders to focus on creating a culture of employee engagement to attract and retain quality employees in an increasingly competitive market. Engaged employees are more committed to their work and feel connected to the success of their organization. In addition, they are more likely to believe in their organization’s values, mission and vision. The increasing utilization of boundary less organizations poses a challenge for leaders who strive to create and maintain employee engagement within an organization.


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