Tag Archives: Measurement
Disputed derivative transactions – Santander and Pourtuguese Rail Operator
I happened to read today a news item on disputed derivatives transactions.
It is reported therein, the dealers settled a crop of disputed derivatives trades with Portuguese state owned entities last year with one exception – Santander...
Interest Rate Derivatives and their wrong sales to gullible customers
Banks are more in the news these days – for a variety of reasons with negative impact of course. Of all these, the one connected with mis-selling of interest rate derivative products is causing considerable damage.
The kind of allegations...
Foreign Exchange Exposures
Foreign Exchange exposure is a measure of the potential for a firm’s profitability, net cash flow and market value to change because of a change in exchange rates. An important task of the financial manager is to measure foreign exchange exposure...
Foreign Exchange Dealing Operations
If you buy a Binny Silk Saree for your wife (or girl friend!) at T.Nagar Chennai Nalli Silks, you will naturally want to pay for it with Indian Rupees and the Nalli Silks will want to be paid in Rupees because he pays all his bills with Rupees.
Likewise,...
Trends in Risk and Margin
Any activity is associated with risk – a loss or gain. Financial risk management is not about avoiding risk. Rather, it is about understanding and communicating risk, so that risk can be taken more confidently and in a better way. (David Koenig,...
What does the future hold for investment banking?
Basel Committee of Bank for International Settlements in its document on “Strengthening the resilience of the banking sector” has identified the buildup of excessive on and off balance sheet leverage in the banking system as one of the underlying...
Cool Times in risk management?
Introduction Any activity is associated with risk – a loss or gain. Financial risk management is not about avoiding risk. Rather, it is about understanding and communicating risk, so that risk can be taken more confidently and in a better...
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