Asset Backed Security (ABS) An asset-backed security is a financial security backed by a loan‚ lease or receivables against assets other than real estate and mortgage-backed securities. For investors‚ asset-backed securities are an alternative to investing in corporate debt. An ABS is essentially the same thing as a mortgage-backed security‚ except that the securities backing it are assets such as loans‚ leases‚ credit card debt‚ a company’s receivables‚ royalties and so on‚ and not mortgage-based
Premium Collateralized debt obligation Bond Subprime mortgage crisis
Chapter 5 Currency Derivatives Lecture Outline Forward Market How MNCs Can Use Forward Contracts Non-Deliverable Forward Contracts Currency Futures Market Contract Specifications Trading Futures Comparison of Currency Futures and Forward Contracts Pricing Currency Futures Credit Risk of Currency Futures Contracts Speculation with Currency Futures How Firms Use Currency Futures Closing Out a Futures Position Transaction Costs of Currency Futures Currency Call Options Factors Affecting Call
Premium Futures contract Option United States dollar
crucial effect this volatility has on the performance and the profitability of firms. The unstable world financial environment and the activation of firms in the global market have created the imperativeness that firms use financial derivatives to hedge financial risk. Many researchers have analyzed the determinants of hedging policy and its correlation with firms’ leverages‚ investment and growth opportunities and very little work has been done to check the impact of derivatives usage on firms’
Premium Research Derivatives Financial markets
fraud exceeded $50 billion. The tally of losses already reported by banks‚ hedge funds and wealthy investors climbed over the weekend to nearly $20 billion. Banks and hedge funds around the world—in the US‚ Britain‚ Italy‚ Spain‚ France‚ Switzerland and Japan—are reporting hundreds of millions and even billions in losses. University endowments‚ charities and other institutions that entrusted their money to Madoff or to hedge funds that invested in Madoff’s company are reeling from the news that their
Premium Ponzi scheme Stock market
The airlines industry has historically been one of the most unprofitable industries. The reason can be explained when incorporating Michael Porter’s famous Five Forces Model. The threat of competition is Southwest Airlines Co. (NYSE: LUV) is an American low-cost airline based in Dallas‚ Texas‚ with its largest focus city at Las Vegas ’ McCarran International Airport. It is the largest airline in the United States by number of passengers carried domestically per year and (as of December 31‚ 2007)
Premium Southwest Airlines Airline
1. The world ’s largest foreign exchange trading center is A. New York. B. Tokyo. C. London. D. Hong Kong. Topic: Function and Structure of the FX Market 2. On average‚ worldwide daily trading of foreign exchange is A. impossible to estimate. B. $15 billion. C. $504 billion. D. $3.21 trillion. Topic: Function and Structure of the FX Market 3. The foreign exchange market closes A. Never. B. 4:00 p.m. EST (New York time). C. 4:00 p.m. GMT (London time). D. 4:00 p
Premium Foreign exchange market Futures contract Forward contract
CDO • Introduction to CDOs • Types of CDOs • Transaction Structure & Mechanics • Evaluation of CDOs • Risk associated with Investing in CDOs • Fair spread estimation with Monte Carlo Simulation • CASE STUDY: HVB ASSET MANAGEMENT ASIA (HVBAM) • CDO in Subprime Mortgage Crisis Introduction to Collateralized Debt Obligations (CDOs) A CDO is an asset-backed security whose underlying collateral is typically a portfolio of bonds (corporate or
Premium Collateralized debt obligation
a. Describe Royal Caribbean’s business. How important are international operations for the company? At the end of the 1960’s‚ Wilhelmsen and Stephan came up with the profitable idea that the wealthy residents of Florida will consider paying top dollar amounts to cruise to the Caribbean Islands as a great alternative for a week or weekend getaway. After proposing this idea to Norwegian entrepreneurs‚ Royal Caribbean Cruise lines‚ was born. Forty five years and forty ships later‚ based out of
Premium Currency United States dollar Foreign exchange market
Advanced Security Analysis and Portfolio Management (EF4320) Spring 2014‚ by Dr. Dayong Huang Office: AC2 5110; Tel: 34429230; email: dayhuang@um.cityu.edu.hk; Email is preferred. Office hours: Tuesday 10:00-11:30 or Wednesday 10:00-11:30 or by appointment Teaching Assistant: Fred Chan‚ Yiufchan7@cityu.edu.hk‚ P7706 AC1. Please email Fred for general inquiries and hand in group homework assignments and trading records to Fred by due date. Aims and Objectives: This course is aimed to provide
Premium Futures contract Hedge Derivative
-MFS- 1. Does the MFS system have weak or strong pay-to-performance? What type of behavior does the MFS system motivate? Basically‚ culture of MFS is focused on teamwork and community so that MFS manages their employees very fair and its compensation system also reflects this characteristic. For sustaining this team –based culture of MFS‚ which don’t prefer star(anti star culture)‚ MFS assesses their employees to the ways that not only fund-performance(performance factor) but also contribution
Premium Hedge fund Assessment Educational psychology