The book introduces how we can manage currency options with the Vanna-Volga method. It describes the underlying theories and applications of the Vanna-Volga method in managing currency options of a financial institution, conforming to the Basel III regulatory requirements which demand a high consistency between the valuation and market risk calculation methodologies of financial instruments. The book illustrates with technical details to shed understanding on the major applications, including valuation, volatility recovery, dynamic portfolio replication and value-at-risk. Those who study finance, risk management, quantitative finance or similar areas, as well as practitioners who wish to learn how to valuate, hedge and manage the market risk of currency options with more advanced models and techniques will find the book of invaluable use.

Financial stability is one of the key tenets of a central bank's functions. Since the financial crisis of 2007-2009, an area of hot debate is the extent to which the central bank should be involved with prudential regulation. This book examines the macro and micro-prudential regulatory frameworks and systems of the United Kingdom, Australia, the United States, Canada and Germany. Drawing on the regulator frameworks of these regions, this book examines the central banks' roles of crisis management, resolution and prudential regulation. Alison Lui compares the institutional structure of the new 'twin-peaks' model in the UK to the Australian model, and the multi-regulatory US model and the single regulatory Canadian model. The book also discusses the extent the central bank in these countries, as well as the ECB, are involved with financial stability, and argues that the institutional architecture and geographical closeness of the Bank of England and Financial Policy Committee give rise to the fear that the UK central bank may become another single super-regulator, which may provide the Bank of England with too much power. As a multi-regional, comparative study on the importance and effectiveness of prudential regulation, this book will be of great use and interest to students and researchers in finance and bank law, economics and banking.

This classic study of German creditbanks was first published in 1930 and even now deserves its place as a fundamental text on banking in Germany. It is a valuable comparative study of one important type of financial institution and represents a detailed survey of Joint Stock Banking in Germany in the pre-war, war and post-war periods upt o 1928.

Credit rating agencies (CRAs) assess the creditworthiness of debt issuers on financial markets. They are private companies and the ratings they issue are judgements about the prospect of repayment of debt by an issuer in time and in full. A rating is not an investment recommendation, but it is an opinion about the creditworthiness of a financial product or an issuing bank, government, supra- or sub-national institution. In recent years CRAs have gained an authority in bond markets that far surpasses their original design. The financial crisis of 2008 thrust the CRAs into the spotlight as their highly rated financial products turned out to be toxic assets. CRAs were blamed not only for their excessively optimistic ratings, but also for their complicity in creating them. This short book introduces and explores the complex world of the credit rating industry: how it works, how it has evolved, the role it played in the financial crisis, and how it is regulated. Giulia Mennillo shows, as constitutive actors of global financial capitalism, CRAs have a social and political relevance that reaches well beyond finance into areas of transport, infrastructure, education and health and their impact is emblematic of the increasing financialization of our world.

International Macroeconomics for Business and Political Leaders explains the fundamentals of international macroeconomics in a very efficient and approachable text. It explores key macro concepts such as growth, unemployment, inflation, interest, and exchange rates. Crucially, it also examines how these markets are interconnected so that readers will fully understand why economic, political, and social shocks to nations, such as the United States, China, Germany, Japan, and Brazil, must be evaluated in the context of all three macroeconomic markets: goods and services, credit, and foreign exchange. This book is as relevant and useful to individuals who have successfully taken and passed a Principles of Economics course, or more, as it is to those who have never taken any economics in high school or college but are motivated to understand the way international economies act and react. It uses an innovative approach to teach supply and demand principles, without using graphs, so as to be understandable and accessible to any interested reader or audience. This is not a theory-for-theory's-sake textbook but a practice-oriented, common-sense approach to explaining international macroeconomics which quickly connects readers to real world events.

Find The Home Mortgage That’s Right For You

Finding the right mortgage can be complex, confusing, and frustrating. But that doesn’t mean you have to settle for anything other than the terms you want. This indispensable and newly updated second edition of How to Save Thousands of Dollars on Your Home Mortgage spells out everything mortgage hunters need to know in clear and accessible terms. It covers more loan alternatives than any other book and examines the importance of discount points. It offers complete details on virtually every mortgage option currently available, what advantages each option offers, how to choose the right one for your needs, and how to save money in the process. New information in this edition will help you use the Internet to find a home and get a mortgage, examine automated underwriting models and conforming loan limits, and weigh new shopping strategies. Easy-to-read charts and graphs, helpful sample forms, and numerous examples will help you understand:

• First-time buyers programs
• APR, buy-downs, reverse mortgages, accelerated payoffs, and zero point loans
• Refinancing strategies
• Closing costs, lender fees, and other expenses
• How to dispute credit report errors and fix credit problems
• How to use the Internet for loan analysis

The assessment and effective management of credit risk is fundamental to the success of any financial institution. However, the increasing sophistication of financial instruments, many of which are over-the-counter products, has demonstrated that traditional methods of evaluation of risk are no longer adequate. Even "common practice" now requires advanced methodologies.

"...The first comprehensive and detailed compendium of credit risk models. This book is an absolute must for all the students and risk professionals who need to understand the modern foundations of credit risk management." Michel Crouhy, Risk Management, CIBC

"This is an impressive exposition of credit risk matters. Every angle is investigated: structural models, reduced-form models, credit risk of derivatives, and empirical results are all explained with verve and rigor. This book should be read by all credit specialists who care to venture beyond the obvious." Jamil Baz, Co-Head of Fixed Income Research, Lehman Brothers, Europe

"The measurement and management of credit risk has undergone a revolutionary transformation over the past few years. Advances in credit pricing and risk management models, together with the development of a sophisticated market for credit derivatives, have forced banks and investors alike to re-evaluate their entire approach to credit risk. Didier Cossin and Hugues Pirotte have delivered a timely, comprehensive and well-balanced synthesis of the concepts and models underpinning modern credit management." Guy Coughlan, Head of European Portfolio Research, J.P. Morgan

"This book has assembled the major results on the value of instruments that are subject to credit risk. The coverage is extensive. Therefore it should prove to be a useful text for both practitioners and graduate students who wish to work in this area." Professor Suresh M. Sundaresan, Chase Manhattan Bank Foundation Professor, Columbia Business School

Growth and Developmental Aspects of Credit Allocation: An Inquiry for Leading Countries and the Indian States focuses on bank credit and deposit within a variety of economies and specifically examines Indian states to demonstrate how these two financial components are linked to their income growths and levels of development. Examining the world economy on both macro and micro levels, Ramesh Chandra Das highlights the increase in current world output as well as its implications for financial indicators and human development across selected countries. Focusing on credit-deposit ratios, trends of credit, NPA, GDP, security investments, and the interconnections of credit with GDP and HDI, Das further locates the link between the financial and real sectors of the economy that amplifies their overall progress. Undertaking a micro level study of these indicators across different states in India, chapters also provide insight into credit concentration, including security investment by banks and the inequality in credit allocation, within an Indian context. Incorporating and applying modern economic theory, Growth and Developmental Aspects of Credit Allocation: An Inquiry for Leading Countries and the Indian States presents a ground-breaking perspective for those interested in banking, finance, macro- and microeconomics, as well as human development on a global scale.

"The Structured Credit Handbook" is a comprehensive introduction to all types of credit-linked financial instruments. This book provides state-of-the-art primers on single tranche collateralized debt obligations (CDOs), collateralized loan obligations (CLOs), credit derivatives (such as credit default swaps and swaptions), and iBoxx indexes. Filled with in-depth insight and expert advice, The Structured Credit Handbook covers all aspects of the synthetic arbitrage CDO market, including new instruments such as CDO2. Readers will also gain a firm understanding of the investment rationale, risks, and rewards associated with CDO investments through this valuable resource.

The exploding use of credit derivatives and collateralized debt obligations (CDOs) has transformed the world of credit, creating an $18 trillion market almost overnight and resulting in innumerable investment and career opportunities globally. "The Structured Credit Handbook" provides the reader with a comprehensive and clear roadmap to today's new credit landscape. The full spectrum of structured credit products, from single-name CDS to CDOs, is explained in a simple, clear fashion that is free from the financial jargon and mathematical complexity which characterize many other derivative texts. The handbook begins with an in-depth explanation of the building blocks of the structured credit markets, single-name default swaps and indexes, and it culminates with complex products such as credit options, synthetic tranches, CDOs based on bank loans and asset-backed securities, and CDO-squareds.

Written by experienced practitioners who have participated in this market since its infancy, each of the thirteen chapters introduces and analyzes a new product and explains its practical applications. A rich set of real-life case studies illustrate the application of each product in a concrete market setting. The book may be used in a semester-long course on structured credit as part of a business or finance curriculum. Whether you are a market professional, a university student or faculty member, or simply a financially savvy layperson, look no further for an up-to-date and thorough introduction to this rapidly growing and exciting field.

Dr. Arvind Rajan, Managing Director, Citigroup Global Markets, is engaged in proprietary trading of Structured Credit products, and until recently, was global head of Structured Credit Research and Strategy at Citigroup.Glen McDermott (New York, NY) is Director of Fixed Income Sales and the former head of CDO Research at Citigroup Global Markets Inc. Ratul Roy is head of CDO Strategy for Citigroup Global Markets and has spent the prior nine years in structuring or analyzing CDOs and other structured credit products.

How a vast network of shadow credit financed European growth long before the advent of banking Prevailing wisdom dictates that, without banks, countries would be mired in poverty. Yet somehow much of Europe managed to grow rich long before the diffusion of banks. Dark Matter Credit draws on centuries of cleverly collected loan data from France to reveal how credit abounded well before banks opened their doors. This incisive book shows how a vast system of shadow credit enabled nearly a third of French families to borrow in 1740, and by 1840 funded as much mortgage debt as the American banking system of the 1950s. Dark Matter Credit traces how this extensive private network outcompeted banks and thrived prior to World War I-not just in France but in Britain, Germany, and the United States-until killed off by government intervention after 1918. Overturning common assumptions about banks and economic growth, the book paints a revealing picture of an until-now hidden market of thousands of peer-to-peer loans made possible by a network of brokers who matched lenders with borrowers and certified the borrowers' creditworthiness. A major work of scholarship, Dark Matter Credit challenges widespread misperceptions about French economic history, such as the notion that banks proliferated slowly, and the idea that financial innovation was hobbled by French law. By documenting how intermediaries in the shadow credit market devised effective financial instruments, this compelling book provides new insights into how countries can develop and thrive today.

"Managing Credit Risk, Second Edition" opens with a detailed discussion of today's global credit markets--touching on everything from the emergence of hedge funds as major players to the growing influence of rating agencies. After gaining a firm understanding of these issues, you'll be introduced to some of the most effective credit risk management tools, techniques, and vehicles currently available. If you need to keep up with the constant changes in the world of credit risk management, this book will show you how.

In many companies credit management is a passive and reactive discipline. This results in significant receivables assets weighing heavily on balance sheets, dragging down cash flow and inhibiting growth. The power of credit is shackled, muted.

Release the power and passion of credit management in your company. Proactively squeeze every morsel of value out of receivables and simultaneously, protect your company from the bad debt danger that lurks in the value chain.

Harness the power of credit to effectively manage your company's receivables. Immediately make a positive difference in your company, and use this book as a resource for years to come.

Reading "Global Credit Management" will help youwake the sleeping giant on your balance sheetmake receivables earn their keep, just like every other asset.wrest control of credit from bureaucratic processes, grab it by the throat and wring out every drop of value.And last but by no means least, boost the value of your company.

..".one of the most intelligent and refreshing exposes of the present and future role of international credit management that I have read in a long time. Global Credit Management represents a very welcome and innovative addition to the small library of quality publications available on international credit and risk management."
--Tim Lane, Director of European Operations, Finance, Credit and International Business (FCIB)

State-of-the-art techniques and tools needed to facilitate effective credit portfolio management and robust quantitative credit analysis,

Filled with in-depth insights and expert advice, Active Credit Portfolio Management in Practice serves as a comprehensive introduction to both the theory and real-world practice of credit portfolio management. The authors have written a text that is technical enough both in terms of background and implementation to cover what practitioners and researchers need for actually applying these types of risk management tools in large organizations but which at the same time, avoids technical proofs in favor of real applications. Throughout this book, readers will be introduced to the theoretical foundations of this discipline, and learn about structural, reduced-form, and econometric models successfully used in the market today. The book is full of hands-on examples and anecdotes. Theory is illustrated with practical application.

The authors' Website provides additional software tools in the form of Excel spreadsheets, Matlab code and S-Plus code. Each section of the book concludes with review questions designed to spark further discussion and reflection on the concepts presented.

A novel historical perspective on how stock markets influence each other internationally. A nation usually overhauls its financial regulations after a stock market crash or the collapse of its banking system. In 1967, France did something rare. Out of pure political expediency, Gaullist leaders and senior civil servants seized the opportunity offered by an insider-trading case and established an independent commission to regulate the securities market: the Commission des Operations de Bourse, or COB. Despite their staunch defense of national sovereignty, these reformers drew their inspiration from an American model, the Securities and Exchange Commission. Highlighting the international sources for national reform, Yves-Marie Pereon's Moralizing the Market explores the dynamics of policy transfer in securities regulation-a subject that has rarely been considered from a historical perspective. That regulation has been used to attract investors and foster market development challenges the view that the French government only attempted to develop the stock market as part of a global wave of deregulation in the 1980s. Indeed, the creation of the COB reveals a great deal about the exercise of power in modern democracies, the interaction between business and government, and the mechanisms of institutional innovation. Moralizing the Market will appeal to professors and students of economic history, international relations, and political science, as well as business and finance historians, policy makers, and professionals.

We live in a culture of credit. As wages have stagnated, we've seen a dramatic surge in private borrowing across the western world; increasing numbers of households are sucked into a hopeless vortex of spiralling debt, fuelled by exploitative lending. In this book Johnna Montgomerie argues that the situation is chronically dysfunctional, both individually and collectively. She shows that abolishing household debts can put an end to austerity and to the unsustainable forward march of debt-dependent growth. She combines astute economic analysis with the elements of an accessible guide to practical policy solutions such as extending unconventional monetary policy to the household sector, providing pragmatic and affordable refinancing options, and writing off the most pernicious elements of household debt. This framework, she contends, can help us to make our economy fairer and to tackle both the housing crisis and accelerating inequality.

Modelling credit risk accurately is central to the practice of mathematical finance. The majority of available texts are aimed at an advanced level, and are more suitable for PhD students and researchers. This volume of the Mastering Mathematical Finance series addresses the need for a course intended for master's students, final-year undergraduates, and practitioners. The book focuses on the two mainstream modelling approaches to credit risk, namely structural models and reduced-form models, and on pricing selected credit risk derivatives. Balancing rigorous theory with examples, it takes readers through a natural development of mathematical ideas and financial intuition.

The mortgage meltdown: what went wrong and how do we fix it?

Owning a home can bestow a sense of security and independence. But today, in a cruel twist, many Americans now regard their homes as a source of worry and dashed expectations. How did everything go haywire? And what can we do about it now?

In "The Rise and Fall of the U.S. Mortgage and Credit Markets, " renowned finance expert James Barth offers a comprehensive examination of the mortgage meltdown. Together with a team of economists at the Milken Institute, he explores the shock waves that have rippled through the entire financial sector and the real economy. Deploying an incredibly detailed and extensive set of data, the book offers in-depth analysis of the mortgage meltdown and the resulting worldwide financial crisis. This authoritative volume explores what went wrong in every critical area, including securitization, loan origination practices, regulation and supervision, Fannie Mae and Freddie Mac, leverage and accounting practices, and of course, the rating agencies. The authors explain the steps the government has taken to address the crisis thus far, arguing that we have yet to address the larger issues.Offers a comprehensive examination of the mortgage market meltdown and its reverberations throughout the financial sector and the real economyExplores several important issues that policymakers must address in any future reshaping of financial market regulationsAddresses how we can begin to move forward and prevent similar crises from shaking the foundations of our financial system

"The Rise and Fall of the U.S. Mortgage and Credit Markets" analyzes the factors that should drive reform and explores the issues that policymakers must confront in any future reshaping of financial market regulations.

Focuses on the Chinese government's credit programs designed to reduce rural poverty, examining how programs function, their impact on the poor, and how they might be adjusted in the future in order to be more effective. Explains the formation and function of financial institutions in rural areas, a

This new textbook provides an up-to-date overview of international banking as the second decade of the twenty-first century unfolds. Integrating geo-economic, operational, institutional and regulatory changes in the financial sector, the volume's methodology incorporates specific case studies and research, combining theory with practical examples to illustrate the impact and consequences of past and present financial crises. The volume considers the core aspects of international banking, including its structural and technical features, historical context, institutional evolution in core markets, and wholesale, retail, investment and private banking. It uses specific examples from past and present literature, post-2008 case studies and histories, and research materials, offering a fully updated overview of how international banks respond to global crises, the origin, efficacy and evolution of financial markets, and the regulatory framework within which they function. One chapter is devoted to the evolution and potential of new markets, including the financial sectors of the BRICS and other emerging economies. Each chapter examines background, causes, impact and resolution, focusing on specific cases and their broader implications for the sector. This textbook is a guide to the new, and at times unchartered, landscape to be navigated by large domestic, cross-regional and global banks, and will be invaluable reading for students of finance, business and economics, as well as for those in the financial sector.

Utilizing research from the U.S., Italy, and the Netherlands, Place, Exclusion and Mortgage Markets presents an in depth examination of the practice of redlining and the broader implications of contemporary urban exclusion processes. * Covers exclusion in mortgage markets in three different countries - the U.S., Italy, and the Netherlands * Presents an interdisciplinary perspective to the practice of redlining * Connects the literature on social exclusion and financial exclusion

A step-by-step, real-world guide to the use of Value at Risk (VaR) models, this text applies the VaR approach to the measurement of market risk, credit risk, and operational risk. The book describes and critiques proprietary models, illustrating them with practical examples drawn from actual case studies. Explaining the logic behind the economics and statistics, this technically sophisticated yet intuitive text should be an essential resource for all readers operating in a world of risk.

The text uses VaR techniques to analyze loans, derivatives, equity prices, foreign currencies and other financial instruments. Featuring comprehensive coverage of the BIS bank capital requirements, and including the latest proposals for the New Capital Accord, the book also describes the newest application of VaR techniques to operational risk measurement. The text examines the promise and the pitfalls of these risk measurement models, and makes recommendations for future research into this important area.

Financial stability is one of the key tenets of a central bank's functions. Since the financial crisis of 2007-2009, an area of hot debate is the extent to which the central bank should be involved with prudential regulation. This book examines the macro and micro-prudential regulatory frameworks and systems of the United Kingdom, Australia, the United States, Canada and Germany. Drawing on the regulator frameworks of these regions, this book examines the central banks' roles of crisis management, resolution and prudential regulation. Alison Lui compares the institutional structure of the new 'twin-peaks' model in the UK to the Australian model, and the multi-regulatory US model and the single regulatory Canadian model. The book also discusses the extent the central bank in these countries, as well as the ECB, are involved with financial stability, and argues that the institutional architecture and geographical closeness of the Bank of England and Financial Policy Committee give rise to the fear that the UK central bank may become another single super-regulator, which may provide the Bank of England with too much power. As a multi-regional, comparative study on the importance and effectiveness of prudential regulation, this book will be of great use and interest to students and researchers in finance and bank law, economics and banking.

The financial markets are a rollercoaster and this book follows the same theme the seduction of money, our ruinous, heady and high stakes pursuit of it, the incredible fortunes and calamitous losses that have been made in its name, the new and significant threat of retail (armchair) investors wanting their piece of the pie, and the perpetual and foolish mismatch that has always existed and will always exist between our evolutionary programming and the design of the financial markets. The dominant theme that runs throughout the book ('Working out Wall Street') is actually a play on words, and relates both to the need to work out why Wall Street traders act so irrationally (e.g. using behavioural finance and evolutionary design to explain herding and panic selling), and the need to use physiological and sport science-related approaches to explain why working out (i.e. adopting exercise and diet-related practices usually applied to athletes) can significantly counter these behaviours. The phrase 'animal spirits' utilised in the concluding chapter title ('Taming Animal Spirits') refers to the seminal work of John Maynard Keynes in his 1936 classic work The General Theory of Employment, Interest and Money and the idea that human emotions-animal spirits- remain a significant driver in (irrational and emotional) investing. The rationale for this book is clear; behavioural finance and neurofinance have opened the floodgates in terms of recognising the role of emotional investing in cyclical boom-and-bust scenarios but what is still missing is an answer to the question So what do we do about it? This book seeks, in as compelling and entertaining a fashion as possible, to provide that answer.

What are credit rating agencies? Many people paying for ratings and ratings reports do not fully understand what they are buying and how these agencies really work. Ratings agencies wield immense power over the fate of individual corporations, countries, and whole economies, yet their workings are remarkably opaque. Many events over the past decade, such as the Asian crisis and the demise of certain financial institutions have highlighted some of the limitations of ratings agencies, and raised questions as to their accountability and the level of service they provide.
In this comprehensive account of the workings of the rating agencies,Andrew Fight explains the role played by ratings agencies, how ratings are obtained, the methodologies through which organisations are assessed and the wider consequences of these decisions.

This special edition of Contemporary Studies in Economic and Financial Analysis offers seventeen chapters from invited participants in the International Applied Social Science Congress, held in Turkey between the 19th and 21st April 2018. The chapters included tackle a range of issues, including risk and control in consumer behavior; augmented reality applications in brand trust; foreign exchange rates; and brand reputation influence, among many more. Covering concepts such as retirement planning, the stock market, and herd behavior, Contemporary Issues in Behavioral Finance is a fundamental text for any researcher or student of behavioral finance, with a cast of expert contributors and editors.