Tag Archives: Credit risk
Financial Market Harmonization Through Financial Technology Application
The global financial industry is in the midst of unprecedented and challenging times. Changes in market conditions drive a very different economic climate which beckons the need to accelerate market harmonization in emerging countries.
What...
Risks in international trade
As a practitioner, I have encountered many risks while handling international trade in different locations (domestic and foreign included). I was amazed and at the same time swayed by these risks in international trade. I have meticulously documented...
Role of central counterparties and processing of OTC derivatives
This post makes an attempt to cover the role of central counter-parties and processing of OTC derivatives in four parts as under:
Part I – All about Central Counterparties
Part II – Best practices framework for CCPs
Part III – Some loud...
Security Lending Business
Concept of Security lending
Security is an asset or third party commitment accepted by the security taker to secure an obligation of the security provider. In theory, cash is the perfect security. The assets traditionally used as security, such...
The business of prime broking – an overview of opportunities
To understand better the business of prime broking, there is a felt need to understand the business of hedge funds first, as prime brokers are in their business only because of these hedge funds!
According to Goldman Sachs & Co, the term...
Country Risk is an Evolving and Dynamic Risk
Country risk analysis, as it is practiced is far from perfect. For example, the country risk of the United States fails to properly take into account the country’s aging population and strained Social Security system — as well as its huge...
An Overview of Structured Finance
What is structured finance?
Structured Finance enables efficient refinancing and hedging profitable economic activity beyond the scope of conventional form of on-balance sheet securities with a view to reduce cost of capital and to mitigate...
Collateral management – Latest Developments
Collateral management is no more a back office function.
Thanks to the recent crises in financial markets, it has graduated itself to a core function status driving the very front office function.
Gone are the days of cost centre approach to...
The Art and Science of Securing Securities Lending Business
Securities Lending is an OTC market business practice that involves borrowing and lending of securities mainly for the purpose of covering short-sale positions. Sometimes, it is also be used for derivative hedges and dividend arbitrage across...
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