Credit and credit institutions Books

Book Synopsis''A truly gripping narrative . . . The fact that Tett is able to reproduce such raw private communications is a tribute to her journalistic abilities'' Dominic Lawson, Sunday Times''Her blow-by-blow story is an impressive piece of detective work. She pulls back the curtain on a closed, unaccountable world of finance'' Will Hutton, GuardianIn the mid 1990s, at a vast hotel complex on a private Florida beach, dozens of bankers from JP Morgan gathered for what was to become a legendary off-site meeting. It was a wild weekend. But among the drinking, nightclubbing and fist-fights lay a more serious purpose - to assess the possibility of building a business around the new-fangled concepts of credit derivatives.The group at the heart of this revolution was an intense team, made up of individuals with a supreme sense of loyalty to each other and to the bank - for years, nothing could break them apart. But when, finally, the team dispersedTrade Review** 'A truly gripping narrative . . . The fact that Tett is able to reproduce such raw private communications is a tribute to her journalistic abilities * Dominic Lawson, SUNDAY TIMES *** 'Her blow-by-blow story is an impressive piece of detective work. She pulls back the curtain on a closed, unaccountable world of finance * Will Hutton, GUARDIAN *** 'An absorbing 15-year gallop across the Wild West of the world's financial markets . . . Tett sketches a system in the grip of a great error, emanating outwards from a cadre of elite traders who were able to repel any attempt to monitor, question or restrain them * Stephen Foley, INDEPENDENT *** 'A very readable, well-informed account of the way investment bankers invented, promoted and profited from the . . . financial products that were at the heart of the financial collapse * Vince Cable, Daily Telegraph *

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Book SynopsisThe Trade and Receivables Finance Companion: A Collection of Case Studies and Solutions is based on the author’s personal experience gained through more than 40 years in the field of trade finance. This Companion applies the techniques described in his first volume, Trade and Receivables Finance: A Practical Guide to Risk Evaluation and Structuring to an extensive range of international trade scenarios. Practical solutions are discussed and presented through a specially selected collection of more than 20 case studies. These books provide an unrivalled and highly practical set of manuals for the trade and receivables financier.The reader is taken on a journey from the structuring of trade products including collections, import and export letters of credit, back to back credits, guarantees and standby credits to fully and partially structured financing solutions for the importer, manufacturer, distributor, middle-party and exporter. Each funding technique provides a compelling alternative to an overdraft.The case studies include the risk assessment and financing of open account payables, stock and receivables transactions and the evaluation and use of credit insurance as a supporting tool. The structuring of commodity finance across the trade cycle, to include warehousing, and call-off is also described. Many of the chapters contain a summary ‘keynote’ overview and comprehensive ‘deal sheet’ extracts of the chosen solution detailing facility and operational requirements. Table of Contents1. Conflicting needs: the need for risk mitigation and finance 2. The trade cycle: construction and facility calculation3. Bills of lading: exercising control4. Advance against collections: an alternative to the overdraft5. Letters of credit for import: protecting the applicant 6. Letters of credit for export: protecting the beneficiary7. Letter of credit non-bank issuer: risk appreciation and negotiation8. Standby letters of credit: protecting the applicant and issuing bank9. Advance payment guarantee: Applicant risk mitigation and clause construction10. Back to back guarantees: managing risk11. Pre-export finance: use of documentation to mitigate performance risk12. Pre-shipment finance: funding the manufacturer13. Stock: structuring financing solutions14. Commercial terms: evaluation15. Credit insurance: evaluating cover16. Receivables finance: formulating the facility structure17. Specific insured debt purchase: structuring a solution to meet the client’s needs18. Financing the importer: structuring payables finance19. Supporting the middle-party: minimising risk exposure20. Discount purchase: reducing the facility requirement21. Commodity finance: financing the trade cycle22. Trade & receivables finance: structuring a compelling client focused solution

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Book SynopsisTrade Review"Winner of the Myrna F. Bernath Book Award, Society for Historians of American Foreign Relations""Meyerowitz's narrative puts into dialogue the usually separate histories of development doctrine, post-1960s leftism, global feminism, and the economics of microcredit. . . . A War on Global Poverty fills an important gap in the literature."---Nils Gilman, Journal of American History"Joanne Meyerowitz’s A War on Global Poverty: The Lost Promise of Redistribution and the Rise of Microcredit makes clear that the US welfare state has always had an international dimension. We can’t understand how the social safety net eroded without examining its reach abroad."---Maia Silber, Chicago Review"Meyerowitz rightly foregrounds the significance of gendered notions of uplift and empowerment in remaking international aid." * Boston Review *

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Book SynopsisTrade Review"Winner of the Viviana Zelizer Award for Best Book, Economic Sociology Section of the American Sociological Association""Honorable Mention for the Theory Prize, Theory Section of the American Sociological Association"

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Book SynopsisIn the US and UK, saving and borrowing routines have changed radically and become closely bound-up with the capital markets of global finance. As mutual funds have increased in popularity and pension provision has been transformed, many more individuals and households have come to invest in stocks and shares. As consumer borrowing has risen dramatically and mortgage finance has been extended to those deemed sub-prime, so the repayments of credit card holders and mortgagors have provided the basis for the issue and trading of bonds and other market instruments. The Everyday Life of Global Finance explores the unprecedented relationships that now bind society and the markets, challenging the dominant tendency to simply position recent developments in Wall Street and the City of London at the centre of contemporary finance. Grounded in literature from the sociology of finance and international political economy, drawing on the social theory of Callon, Foucault, and Latour, and informed byTrade ReviewReview from previous edition The credit crisis shows the importance of understanding how everyday saving and borrowing interact with global finance. Langley provides a thorough, sophisticated and timely analysis. * Donald MacKenzie, Professor of Sociology, University of Edinburgh, and author of An Engine, Not a Camera: How Financial Models Shape Markets *This is a major study of how the 'democratization of finance' in our time has worked to create new identities for savers and borrowers. It challenges us all to think again about how we understand the remaking of present day capitalism. * Karel Williams, Professor of Accounting and Political Economy, University of Manchester *In a major statement of the new IPE, Paul Langley demonstrates how everyday forms of saving and borrowing produce subject positions and financial identities among everyday actors that are the 'unrecognized' constitutive elements of the global financial order. * Mark Blyth, Associate Professor of Political Science, Johns Hopkins University *This is an undeniably important and timely book. We are at a moment of significant change and uncertainty within the Anglo-American financial system within which many of us are irrevocably entangled due to our everyday roles as borrowers and/or savers. Langley reveals with skill and insight how we have arrived at this particular financial and political conjuncture and, in doing so, provides an important resource to help determine where we may be headed. * Andrew Leyshon, Professor of Economic Geography, University of Nottingham *Table of ContentsINTRODUCTION ; 1. Networks, Power, Identity, and Dissent ; PART I: SAVING ; 2. From Thrift and Insurance to Everyday Investment ; 3. Pensions and Everyday Investment ; 4. The Uncertain Subjects of Everyday Investment ; 5. Socially Responsible Investment ; PART II: BORROWING ; 6. The Boom in Everyday Borrowing ; 7. Inequalities in Everyday Borrowing ; 8. The Uncertain Subjects of Everyday Borrowing ; 9. Dissent in Everyday Borrowing ; CONCLUSION ; 10. The Sub-Prime Crisis

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Book SynopsisReveals that pawnshops have long played an integral role in Americans' economic lives. Presenting the history of pawn-broking in the United States from the nation's founding through the Great Depression, this title demonstrates that the practice was inextricably intertwined with the rise of capitalism.

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Book SynopsisProviding the definitive history of pawnbroking in the United States from the nation's founding through the Great Depression, this title demonstrates that the pawnshop was essential to the rise of capitalism.Trade Review"A remarkable and remarkably original book. With her keen ear for the stories and anecdotes that make the milleus of the working poor come alive, Wendy A. Woloson captures the vivid and untold history of pawnbroking from the late eighteenth century through the Great Depression, and writes with panache on the many changes this period heralded." (Ann Fabian, Rutgers University)"

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Book Synopsis

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Book Synopsis

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Book Synopsis

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Book SynopsisA thoroughly revised and updated edition of a textbook for graduate students in finance, with new coverage of global financial institutions.This thoroughly revised and updated edition of a widely used textbook for graduate students in finance now provides expanded coverage of global financial institutions, with detailed comparisons of U.S. systems with non-U.S. systems. A focus on the actual practices of financial institutions prepares students for real-world problems.After an introduction to financial markets and market participants, including asset management firms, credit rating agencies, and investment banking firms, the book covers risks and asset pricing, with a new overview of risk; the structure of interest rates and interest rate and credit risks; the fundamentals of primary and secondary markets; government debt markets, with new material on non-U.S. sovereign debt markets; corporate funding markets, with new coverage of small and medium enterprises and entre

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Book SynopsisA new edition of a book presenting a unified framework for studying the role of money and liquid assets in the economy, revised and updated.In Money, Payments, and Liquidity, Guillaume Rocheteau and Ed Nosal provide a comprehensive investigation into the economics of money, liquidity, and payments by explicitly modeling the mechanics of trade and its various frictions (including search, private information, and limited commitment). Adopting the last generation of the New Monetarist framework developed by Ricardo Lagos and Randall Wright, among others, Nosal and Rocheteau provide a dynamic general equilibrium framework to examine the frictions in the economy that make money and liquid assets play a useful role in trade. They discuss such topics as cashless economies; the properties of an asset that make it suitable to be used as a medium of exchange; the optimal monetary policy and the cost of inflation; the coexistence of money and credit; and the relationshi

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Book SynopsisGlen Arnold has deftly crossed the HE/professional/consumer divide and has had success at all levels. He's the author of Corporate Financial Management, now 4th edition; The FT Guide to Value Investing; The Handbook of Corporate Finance; the bestselling The FT Guide to Investing; The Great Investors; Get Started in Shares.Table of Contents Preface Part 1: An Overview Chapter 1 – Introduction to Bond and Money Markets Part 2: Bond Markets Chapter 2 – Government Bonds Chapter 3 – Government Bonds around the World Chapter 4 – Corporate Bonds Chapter 5 – Credit Ratings for Bonds Chapter 6 – High-yield and Hybrid Bonds Chapter 7 – International Bonds Part 3: Money Markets Chapter 8 – Interbank and Euro Currency Chapter 9 – Treasury Bills and Commercial Paper Chapter 10 – Repurchase Agreements and Certificates of Deposit Chapter 11 – Bills of Exchange and Banker’s Acceptances Part 4: Valuing Bonds and Money Market Instruments Chapter 12 – Financial Concepts and Mathematics Chapter 13 – Bond Valuation Chapter 14 – Money Market Securities Valuation Part 5: Some Variations on a Bond Theme Chapter 15 – Securitisation Chapter 16 – Central Banking Influences on Interest Rates

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Book SynopsisMoving Beyond Modern Portfolio Theory: Investing That Matters tells the story of how Modern Portfolio Theory (MPT) revolutionized the investing world and the real economy, but is now showing its age. MPT has no mechanism to understand its impacts on the environmental, social and financial systems, nor any tools for investors to mitigate the havoc that systemic risks can wreck on their portfolios. It's time for MPT to evolve.The authors propose a new imperative to improve finance's ability to fulfil its twin main purposes: providing adequate returns to individuals and directing capital to where it is needed in the economy. They show how some of the largest investors in the world focus not on picking stocks, but on mitigating systemic risks, such as climate change and a lack of gender diversity, so as to improve the risk/return of the market as a whole, despite current theory saying that should be impossible. Moving beyond MPT recognizes the complex relations beTrade Review"If you want to know what is next in finance and investing, read this book. Lukomnik and Hawley expertly show how financial theory got us here, the limitations of that theory and what is poised to take its place in the financial markets of the future." — Matt Orsagh, Director of Capital Markets Policy, CFA Institute"Lukomnik and Hawley provide an insightful case for the need to modernize Modern Portfolio Theory. Investors, academics, and everyone interested in finance and a sustainable future should read it -- it will challenge how you think!" — Caroline Flammer, Associate Professor, Boston University and Chair, PRI Academic Advisory Committee"This definitive analysis of the limitations of Modern Portfolio Theory and the gaps it has left behind is a must-read for anyone wishing to understand where investment is now headed. It demonstrates why and how investment must evolve in coming years and is the foundation on which forward-thinking investors are now building a new practice." — Steve Lydenberg, Founder and CEO, The Investment Integration Project"Lukomnik and Hawley brilliantly make the point that Modern Portfolio Theory is limited in its ability to deal with systemic risks that affect capital markets, investors and society. They highlight the increasing realization that investing success is inextricably linked to the health of the economy and capital markets, rather than just to an investor’s superior stock-picking prowess. They show clearly how investors have moved beyond diversification to act on climate change and other material ESG risks." — Sacha Sadan, Director of Investment Stewardship, Legal and General Investment Management"At a time of deep reflection around the purpose of companies and financial markets, ‘Investing that Matters’ steers us towards a more enlightened view of capitalism in the 21st century. It teaches us that long-term value creation is achieved beyond simple analysis of a company’s historical financial performance and encourages the reader to appreciate the importance of deeper systemic risks – ecological destruction, technological advancement and demographic shifts – which will shape the corporate governance landscape as we know it. Lukomnik and Hawley offer an important book, illuminating how modern portfolio theory needs to evolve to better serve our economies and societies now and into the future." — Kerrie Waring, Chief Executive Officer, International Corporate Governance Network"Moving Beyond Modern Portfolio Theory is a highly needed book, in which Jim and Jon realign finance with the real world, reminding us of its purpose. I’m delighted we can now cite it and share it with students who feel a sense of confusion and distrust when they submit financial theories to their critical thinking, and with investors in search of a sense of purpose and impact. Portfolio and investing activity clearly affect the system -- the financial, ecological, social world we live in. Jim and Jon make this argument very convincingly here, in a finance book that matters!" — Christel Dumas, Associate Professor, ICHEC"If you are puzzled by the current disconnect between the stock market and the real economy, but hopeful that investing can go back to its main purpose, that is allocating capital to address societal problems, you should read Investing that Mattes. An intelligent and accessible reflection on how Modern Portfolio Theory shaped the investing world we live today, and how it is now holding it back from addressing the challenges we face as a society. Investing that Matters suggests that practice is leading theory in experimenting with novel ways for investors to conceptualize and directly tackle systemic risk, through various forms of Beta activism. Still, our ability to theorize these practices is lagging. Calling for more active stewardship of investment to work on the root causes of risk, rather than playing with its statistical properties, the authors suggest the steps investors should take to take on this challenge. " — Fabrizio Ferraro, Professor and head of Strategic Management Department, IESE Business SchoolTable of ContentsIntroduction 1. The MPT Revolution Devours Its Children 2. The MPT Paradox 3. Short-Termism 4. Everything Old Is New Again 5. From Dividends in Nutmeg to Creating $5 Trillion Conclusion Bibliography

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Book SynopsisIt is common to blame the inadequacy of credit risk models for the fact that the financial crisis has caught many market participants by surprise. On closer inspection, though, it often appears that market participants failed to understand or to use the models correctly.Table of ContentsPreface to the 2nd edition xi Preface to the 1st edition xiii Some Hints for Troubleshooting xv 1 Estimating Credit Scores with Logit 1 Linking scores, default probabilities and observed default behavior 1 Estimating logit coefficients in Excel 4 Computing statistics after model estimation 8 Interpreting regression statistics 10 Prediction and scenario analysis 12 Treating outliers in input variables 16 Choosing the functional relationship between the score and explanatory variables 20 Concluding remarks 25 Appendix 25 Logit and probit 25 Marginal effects 25 Notes and literature 26 2 The Structural Approach to Default Prediction and Valuation 27 Default and valuation in a structural model 27 Implementing the Merton model with a one-year horizon 30 The iterative approach 30 A solution using equity values and equity volatilities 35 Implementing the Merton model with a T -year horizon 39 Credit spreads 43 CreditGrades 44 Appendix 50 Notes and literature 52 Assumptions 52 Literature 53 3 Transition Matrices 55 Cohort approach 56 Multi-period transitions 61 Hazard rate approach 63 Obtaining a generator matrix from a given transition matrix 69 Confidence intervals with the binomial distribution 71 Bootstrapped confidence intervals for the hazard approach 74 Notes and literature 78 Appendix 78 Matrix functions 78 4 Prediction of Default and Transition Rates 83 Candidate variables for prediction 83 Predicting investment-grade default rates with linear regression 85 Predicting investment-grade default rates with Poisson regression 88 Backtesting the prediction models 94 Predicting transition matrices 99 Adjusting transition matrices 100 Representing transition matrices with a single parameter 101 Shifting the transition matrix 103 Backtesting the transition forecasts 108 Scope of application 108 Notes and literature 110 Appendix 110 5 Prediction of Loss Given Default 115 Candidate variables for prediction 115 Instrument-related variables 116 Firm-specific variables 117 Macroeconomic variables 118 Industry variables 118 Creating a data set 119 Regression analysis of LGD 120 Backtesting predictions 123 Notes and literature 126 Appendix 126 6 Modeling and Estimating Default Correlations with the Asset Value Approach 131 Default correlation, joint default probabilities and the asset value approach 131 Calibrating the asset value approach to default experience: the method of moments 133 Estimating asset correlation with maximum likelihood 136 Exploring the reliability of estimators with a Monte Carlo study 144 Concluding remarks 147 Notes and literature 147 7 Measuring Credit Portfolio Risk with the Asset Value Approach 149 A default-mode model implemented in the spreadsheet 149 VBA implementation of a default-mode model 152 Importance sampling 156 Quasi Monte Carlo 160 Assessing Simulation Error 162 Exploiting portfolio structure in the VBA program 165 Dealing with parameter uncertainty 168 Extensions 170 First extension: Multi-factor model 170 Second extension: t-distributed asset values 171 Third extension: Random LGDs 173 Fourth extension: Other risk measures 175 Fifth extension: Multi-state modeling 177 Notes and literature 179 8 Validation of Rating Systems 181 Cumulative accuracy profile and accuracy ratios 182 Receiver operating characteristic (ROC) 185 Bootstrapping confidence intervals for the accuracy ratio 187 Interpreting caps and ROCs 190 Brier score 191 Testing the calibration of rating-specific default probabilities 192 Validation strategies 195 Testing for missing information 198 Notes and literature 201 9 Validation of Credit Portfolio Models 203 Testing distributions with the Berkowitz test 203 Example implementation of the Berkowitz test 206 Representing the loss distribution 207 Simulating the critical chi-square value 209 Testing modeling details: Berkowitz on subportfolios 211 Assessing power 214 Scope and limits of the test 216 Notes and literature 217 10 Credit Default Swaps and Risk-Neutral Default Probabilities 219 Describing the term structure of default: PDs cumulative, marginal and seen from today 220 From bond prices to risk-neutral default probabilities 221 Concepts and formulae 221 Implementation 225 Pricing a CDS 232 Refining the PD estimation 234 Market values for a CDS 237 Example 239 Estimating upfront CDS and the ‘Big Bang’ protocol 240 Pricing of a pro-rata basket 241 Forward CDS spreads 242 Example 243 Pricing of swaptions 243 Notes and literature 247 Appendix 247 Deriving the hazard rate for a CDS 247 11 Risk Analysis and Pricing of Structured Credit: CDOs and First-to-Default Swaps 249 Estimating CDO risk with Monte Carlo simulation 249 The large homogeneous portfolio (LHP) approximation 253 Systemic risk of CDO tranches 256 Default times for first-to-default swaps 259 CDO pricing in the LHP framework 263 Simulation-based CDO pricing 272 Notes and literature 281 Appendix 282 Closed-form solution for the LHP model 282 Cholesky decomposition 283 Estimating PD structure from a CDS 284 12 Basel II and Internal Ratings 285 Calculating capital requirements in the Internal Ratings-Based (IRB) approach 285 Assessing a given grading structure 288 Towards an optimal grading structure 294 Notes and literature 297 Appendix A1 Visual Basics for Applications (VBA) 299 Appendix A2 Solver 307 Appendix A3 Maximum Likelihood Estimation and Newton’s Method 313 Appendix A4 Testing and Goodness of Fit 319 Appendix A5 User-defined Functions 325 Index 333

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Book SynopsisFind 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 uTable of ContentsForeword. Introduction. PART 1: BACKGROUND. The Structure of the Mortgage Industry. How Lenders Influence Borrowers' Choices. How Lenders Market Loans. How to Choose the Right Loan. KEY POINTS. For First-Time Home Buyers. PART 2: CHOOSING A LENDER AND GETTING APPROVED. Qualifying 101. Credit. Bank, S&L, or Broker? Shopping for a Loan and Negotiating with a Lender. APR, Buy-Downs, and Discount Points. What to Do When You Run into a Problem. QUALIFYING PROBLEMS. PART 3: LOCKING AND CLOSING. How Lenders Can Cheat Their Customers. Closing Costs, Lender Fees, and Other Fees. PART IV: ADVANCED TOPICS. Qualifying 201. Refinancing. Fifteen-Year Loans and Accelerated Payoffs. Equity Lines, Seconds, and Reverse Mortgages. No-Cost and Zero-Cost Loans. Technology: The Internet and Software. THE MORTGAGE INDUSTRY ON-LINE. Epilogue: On the Need for Reform and Other Thoughts. Appendix. Glossary. Index.

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Book SynopsisAddressing one of the hottest topics in finance today, this groundbreaking book offers an up-to-date overview of the latest credit market and financial innovations.Table of ContentsWhy New Approaches to Credit Risk Measurement and Management? Traditional Approaches to Credit Risk Measurement. Loans as Options and the KMV Model. The VAR Approach: J.P. Morgan's CreditMetrics and Other Models. The Macro Simulation Approach: The McKinsey Model and Other Models. The Risk-Neutral Valuation Approach: KPMG's Loan Analysis System (LAS) and Other Models. The Insurance Approach: Mortality Models and the CSFP Credit Risk Plus Model. A Summary and Comparison of New Internal Model Approaches. An Overview of Modern Portfolio Theory and Its Application to Loan Portfolios. Loan Portfolio Selection and Risk Measurement. Back-Testing and Stress- Testing Credit Risk Models. RAROC Models. Off-Balance-Sheet Credit Risk. Credit Derivatives. Bibliography. Index.

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Book SynopsisInvestors and ratings agencies have been caught by surprise by the wave of recent bank failures and closures in Europe and Asia. This book addresses this issue by explaining why ratings exist, the history of ratings and the background of the ratings process.Trade Review"The book deals admirably with these problems, explaining thedebates involved and detailing ratings companies' excuses with theright level of cynicism." (Investment Adviser, 19th February2001) "...This is a comprehensive guide to ratings agencies."(Portfolio International, February 2001)Table of ContentsPreface. The World of Ratings. The Rating Agencies. Methodologies and Characteristics. Rating Agencies in the Economic Environment. Quis Custodiet Ipsos Custodes. The Future. Glossary. Sources. Index.

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Book SynopsisPraise for MAVERICK REAL ESTATE FINANCING Once you start reading, you won''t be able to put the book down. You will feel you are part of the deals that industry leaders have put together. This is a real book about real people and how they address risk and reward. --Bruce S. Schonbraun, Managing Partner The Schonbraun McCann Group LLP Bergsman applies a journalist''s logic to the complex world of commercial real estate, making it easier for outsiders to understand. He writes with the authority of a true insider. --Brannon Boswell, Managing Editor Shopping Centers Today Congratulations. Finally, someone has written a book that reflects real estate finance in the twenty-first century. With the growing proliferation of real estate education in university business schools today, this book should be required reading! --James D. Kuhn, President Newmark Knight Frank In Maverick Real Estate Financing, Steve Bergsman--author oTrade Review"Once you start reading, you won't be able to put the book down. You will feel you are part of the deals that industry leaders have put together. This is a real book about real people and how they address risk and reward." —Bruce S. Schonbraun, Managing Partner The Schonbraun McCann Group LLP "Bergsman applies a journalist's logic to the complex world of commercial real estate, making it easier for outsiders to understand. He writes with the authority of a true insider." —Brannon Boswell, Managing Editor Shopping Centers Today "Congratulations. Finally, someone has written a book that reflects real estate finance in the twenty-first century. With the growing proliferation of real estate education in university business schools today, this book should be required reading!" —James D. Kuhn, President Newmark Knight FrankTable of ContentsIntroduction. Chapter 1. The Most Amazing Real Estate Company Ever—Again! Chapter 2. Real Estate Loans. Chapter 3. Advantages and Disadvantages of Conduit Loans. Chapter 4. Agency Loans, An Easy Way to Finance Multifamily. Chapter 5. Giving It up for Equity Financing. Chapter 6. A Very Useful Subsidy. Chapter 7. Turning Real Estate Into Capital. Chapter 8. Retail Site Arbitrage. Chapter 9. De-Stressing Distressed Mortgages. Chapter 10. Commingled Capital. Chapter 11. Of REITS and UPREITs. Chapter 12. The REITs That Don't Tade Publicly. Notes. Index.

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Book SynopsisThe key to a successful loan workout is to identify the problemsaccurately and address them early. It is critical that thecompany''s underlying business and financial problems are resolvedand not merely the symptoms. Loan Workouts and Debt for Equity Swaps examines how a successfulloan workout can be managed. It detail the processes andparticipants involved, whilst providing frameworks and practicalstep- by-step approaches that allow for a coherent and cohesivepolicy to give the best possible chance of success. The bookassists in the ultimate aim of providing a firm base for the futurehealth of the company involved and maximizing the lenders'' returns.This work is not merely restricted to companies and banks involvedin the process, but other important participants in loanworkouts. Areas featured in the book are: * What loan workouts are and why they are needed * Non-performing loans related strategies, organization andsystems * Participants involved in loan worTrade Review"The book is needed quite simply because there is a dearth of information on corporate restructuring. At present the number of receiverships is going down and the emphasis is on workouts. In this respect the book is very timely.", , , #"I", , , #Table of ContentsForeword by David Wilson Havelock. INTRODUCTION AND BACKGROUND. Introduction. Loan Workouts: What They are and Why They are Needed. STRATEGY, PARTIES AND THE PROCESS. A Framework for Managing Non-Performing Loans. Organisation and Systems Relating to Non-Performing Loans. Managing Loan Workout Transactions. The Company. The Banks. Other Key Participants in Loan Workouts. External Advisors. A Framework for Executing Loan Workouts. Turning Around a Business. The Information Gathering and Review Process. Exploring Loan Workout Options. Evaluating Restructuring Options and Developing Proposals. Negotiating and Completing Transactions. THE MORATORIUM AND FINANCIAL RESTRUCTURING. Establishing a Moratorium. Financial Creditors Affected by a Moratorium The Operation of Facilities in a Moratorium. The Concept of Loss-Sharing. Multi-Currency Considerations. Financial Restructuring. Inter-Creditor Provisions in a Financial Restructuring. Other Terms and Conditions. Introduction to Debt for Equity Swaps. Transaction Approach. Equity Instruments. Other Transaction Parameters. Other Technical Issues. CASE STUDY. Project Gloucester. Index.

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Book SynopsisThe credit card industry today is a multi-trillion dollar business that employs hundreds of thousands of people across the globe and impacts literally billions of people every day. Yet there is no comprehensive book or reference material available in the marketplace that provides fact-based perspectives on how to develop and manage a successful card business - despite the significant demand from all those involved in the industry. Developing and Managing a Successful Payment Cards Business offers information, analysis, observations, perspectives and advice on developing and managing a card business. There is comprehensive coverage of all areas including card business strategy, product development, customer acquisition and retention strategies, and product marketing techniques. The book also reviews underlying infrastructure components relating to operations and systems including risk management and transaction processing and suggests improvement techniques. There is detailed discussTrade Review'The payment cards business has grown enormously in the last two decades, and today must represent one of the largest and most profitable verticals in global financial services industry. And the growth potential has not likely been exhausted, because consumers continue to opt for cards, instead of cash and check, in virtually every part of the world, both emerging markets and developed economies alike. At the same time, however, the cards business has found itself increasingly wrapped in controversy, especially as merchants have taken issue with rising cost. For a large, growing, and controversial industry, Slawsky and Zafar's new book provides a blueprint that explains how the business actually works and as such should interest a wide range of readers, including financial services executives and managers, as well as investors, regulators, and policy-makers.' Kenneth Posner, Morgan Stanley, NY, U.S.A 'Delivers an excellent topology of the business of payments. The authors provide a comprehensive review of the history and the future of payments. Its practical approach to cards makes it a valuable resource for people in the cards business and for those beginning their careers in cards. The authors’ insight on what constitutes an effective marketing strategy provides an excellent framework for card issuers to develop and execute strategies that will deliver results. A must-read'. Joe DiVanna, Director, Maris Strategies Limited ’This book offers an excellent overview of the cards industry. It describes with clarity industry best practices in all key areas.’ Michael Lafferty, Chairman, Lafferty □Group ’If you want to understand the credit card business, read this book. If you are in the credit card business and want to improve your market share, sales and profitability and only have time to read one book, read this one. It is like a mini MBA in credit card management and covers all aspects of the card business - from marketing and customer management, opeTable of ContentsContents: Introduction to payment cards; How payment cards work; Organizational design; Marketing and strategy; Existing account marketing; Customer management; Operations management; Fraud prevention and control; Collections; Infrastructure and delivery channels; Profitability; Business process analysis; Future of payment cards; Alternative payment products; Securitization; Index.

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Book SynopsisAmerican Express introduced rupee cards in India in 1993, leading to a finance center in Delhi and the growth of the BPO sector employing 300,000 people and generating $5 billion revenue. "The Backroom Brigade" highlights their impact on India's global image.

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Book SynopsisTracing credit from colonial times to the present and highlighting its productive role in building national prosperity, Rowena Olegario probes questions that have divided Americans: Who should have access to credit? How should creditors assess creditworthiness? How can borrowers and lenders accommodate to the risks of a credit-dependent economy?Trade ReviewA valuable scholarly contribution for its marshaling of such a large amount of information on credit throughout American history and for wrestling it into a coherent narrative. -- Bruce H. Mann, Harvard Law SchoolA clear, well-written synthesis showing a command of a wide range of literatures relating to private credit. There is no other book with its long historical range. -- Richard E. Sylla, Stern School of Business, New York University

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Book SynopsisSince the 1890s, people on the lowest rungs of the economic ladder in the U.S. have paid the highest price for credit. Anne Fleming tells how each generation has tackled the problem of fringe finance and its regulation. Her detailed work contributes to the broader, ongoing debate about the meaning of justice within capitalistic societies.Trade ReviewFleming’s fascinating, carefully researched study reveals the pivotal role New York played in the development of consumer-credit regulation. New York might be an outlier in the twenty-first century, but at the turn of the twentieth century, when small-sum loans originated, every major thread was connected to the events and personalities of New York. -- Ronald J. Mann, author of Bankruptcy and the U.S. Supreme CourtAnne Fleming’s pathbreaking narrative of small-sum lending in New York City brings alive loan sharks, lenders seeking respectability, reformers, crusading lawyers, and the debtors themselves, all while focusing on a problem that plagues us to this day: the poor need money desperately, have little credit to obtain it, and thus are easy marks for exploitation. -- Robert W. Gordon, author of Taming the Past: Essays on Law in History and History in LawLoan sharks and banks reside on a single lending continuum. Fleming takes us to the only space on that continuum where marginal wage-earners could legally, albeit expensively, borrow money. City of Debtors is essential reading for anyone who would understand that world and its consequences, then and now. -- Bruce H. Mann, author of Republic of Debtors: Bankruptcy in the Age of American IndependenceIt would be easy to get lost in the thicket of loopholes, appeals, FTC rules, ‘wage assignments,’ ‘waiver of defense clauses,’ and similar arcana, but Fleming is a surefooted guide. The reader comes out with a much deeper understanding of the shadowy, constantly changing landscape at the edges of standard finance and economic daily life. -- Bethany Moreton, author of To Serve God and Wal-Mart: The Making of Christian Free EnterpriseFleming has taken a fragmented history and turned it into a compelling narrative, about not only fringe lending but also the fraught relationship that Americans have long had with consumer debt, and specifically its role in poverty alleviation. -- Rowena Olegario * Business History Review *

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Book SynopsisTrade Review"Winner of the Viviana Zelizer Award for Best Book, Economic Sociology Section of the American Sociological Association""Honorable Mention for the Theory Prize, Theory Section of the American Sociological Association"

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Book SynopsisTrade Review"Winner of the Myrna F. Bernath Book Award, Society for Historians of American Foreign Relations""Meyerowitz's narrative puts into dialogue the usually separate histories of development doctrine, post-1960s leftism, global feminism, and the economics of microcredit. . . . A War on Global Poverty fills an important gap in the literature."---Nils Gilman, Journal of American History"Joanne Meyerowitz’s A War on Global Poverty: The Lost Promise of Redistribution and the Rise of Microcredit makes clear that the US welfare state has always had an international dimension. We can’t understand how the social safety net eroded without examining its reach abroad."---Maia Silber, Chicago Review"Meyerowitz rightly foregrounds the significance of gendered notions of uplift and empowerment in remaking international aid." * Boston Review *

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Book SynopsisIn the wake of the 2008 financial crisis, it became apparent that pricing loans in a way that is profitable for lenders and sensitive to risk is anything but simple. Increasingly, lenders are following the lead of other retailers by segmenting their market and more precisely targeting customers. To do this successfully, lenders must engage analytic approaches, such as machine learning and optimization, in setting prices for each segment. Robert L. Phillips worked with major banks and financial services companies for more than a decade to help them improve their pricing capabilities. This book draws on his experience, as well as the latest academic research, to demonstrate how lenders can apply the proven techniques of price optimization to responsibly improve the profitability of their loans. It is a go-to resource for academics and professionals alike, particularly lenders who are looking for ways to do better business in an increasingly competitive (and regulated) market.Trade Review"Phillips provides a lucid treatment of an important subject in today's economy—namely, the pricing and management of personal loans and other credit products. This book does an excellent job of exposing the uninitiated reader to the main issues at stake, while offering a substantial review for experienced professionals." -- Rene Caldentey * University of Chicago Booth School of Business *"Going beyond just risk-based pricing, this is a comprehensive synthesis of the field from the foremost expert in it." -- Larry Rosenberger * FICO *"Bob Phillips is the preeminent authority on and intellectual father of price optimization in retail banking. This book combines real-world experience with a rigorous scientific framework and tangible advice to practitioners. The mathematical and operational approaches to pricing he outlines will generate many basis points of incremental margin while ensuring fair treatment of the customer. As banks globally are implementing data-driven approaches to pricing, this is required reading." -- Frank Rohde, CEO * Nomis Solutions *"In the banking industry, pricing is about to have a moment in the sun. With rising interest rates and an inexorable move towards personalized pricing, pricing insights, analytical sophistication, and execution capabilities are likely to become key differentiators between the winners and the losers. In this deep dive into credit pricing, Bob Phillips unpacks what is required for lenders to drive profitability through pricing; while not falling foul of the regulators." -- Alan McIntyre, Senior Managing Director, Global Banking * Accenture *Table of ContentsContents and AbstractsIntroduction chapter abstractThis chapter motivates the book. It argues that lenders are ideally placed to perform price optimization because of their access to deep information about their customers and transactions. However, for historical reasons, lenders have lagged retailers, particularly online retailers, in their adoption of price optimization. More widespread adoption of price optimization among lenders would not only improve their business performance but also might help prevent a repeat of the 2008 financial crisis. 1The Consumer Credit Market chapter abstractCredit is available to consumers in a wide range of forms, under a wide range of terms, and from a variety of institutions. This chapter describes the most important forms of consumer credit in different countries and the various institutions that offer credit. It begins with a brief history of consumer credit. This history is needed to understand some of the peculiarities of the present-day consumer credit markets and variation among countries. This chapter also describes the different processes used by lenders to compute and quote prices to consumers. 2Credit Risk chapter abstractRisk is one of the defining characteristics of credit, and every lender needs to understand loan risk and how it interacts with pricing. This chapter discusses the sources of credit risk and how they can be measured. It shows how credit scores can measure risk and how they can be calculated using historical data. It also shows how differential price sensitivity by risk tier leads to price-dependent risk. 3Incremental Loan Profitability chapter abstractA key component of price optimization in lending is understanding how the profitability of a loan will change as a function of the price. This requires careful accounting of how various elements of loan cost and revenue will be realized over time and how the risks of default and repayment influence these streams. This chapter discusses each element of incremental loan profitability and how they can be calculated. It shows how each of these elements varies with the price and other characteristics of the loan. These calculations are performed in detail for an example simple loan and then extended to more complex loan structures. This chapter also discusses risk aversion and argues that a lender with a large portfolio of loans should act risk-neutral in evaluating and pricing individual loans. 4The Fundamentals of Price Response chapter abstractThis chapter provides a brief review of the basics of consumer price response. It shows how a price-response function for a loan is the result of the variation of willingness to pay across the population. Different distributions of willingness to pay give rise to different price-response functions. The price sensitivity for a loan at a particular price can be measured by the slope, hazard rate, or elasticity of the price-response curve at that point. 5Estimating Price Response chapter abstractOne of the key steps in price optimization is estimating the price-response curves associated with different pricing segments. There are a number of techniques for doing this using historical data. The chapter describes the process in detail using logistic regression applied to a data set derived from an online auto lender. Different approaches to estimating price response derived from the field of machine learning are discussed. The chapter concludes with a discussion of the use of data-free approaches such as conjoint analysis and surveys when historical price response data is not available. 6Pricing Segmentation chapter abstractThis chapter discusses how price-response differs among different types of customer for different types of loans offered through different channels and how transactions can be segmented in order to take advantage of these differences by charging a different price to each segment. The chapter gives an overview of the economic theory behind pricing segmentation and also shows how superior pricing segmentation can provide a strategic advantage for a lender. 7Optimizing Prices chapter abstractThis chapter describes how the price-optimization problem can be formulated and solved. It starts by deriving the profit and revenue maximizing conditions for a single simple loan with and without price-dependent risk. It then extends the discussion to the case of price-dependent risk and the case of multiple loans for many different pricing segments. In most cases, lenders impose constraints on the prices. This means that finding the set of prices that best meets the business goal of the lender while simultaneously satisfying all of the constraints is a problem of constrained nonlinear optimization. The chapter discusses the issues of infeasibility and multiple solutions that can arise in such a problem. Finally, it discusses how an efficient frontier can be used to visualize the tradeoffs between two different business objectives. 8Behavioral Economics and Credit Pricing chapter abstractPrice optimization typically assumes (often implicitly) that consumers are rational in the sense that they make perfect financial decisions appropriately evaluating all options against their preferences. However, both experience and academic research shows that consumers often behave in ways that are far from rational. These deviations from rationality include the use of such heuristics as mental accounting and debt account aversion along with time-inconsistent preferences. This chapter discusses the implications of such deviations from rationality for loan pricing and for regulations.

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Book SynopsisThe story of how credit and cosmetic surgery have created a subprime mortgage crisis of the body.In this provocative book, sociologist Laurie Essig traces the history of plastic surgery, tracks the effect of fashion and porn on our desire to fix ourselves, and explores our image- and youth-obsessed culture. In over two hundred interviews of plastic surgeons and surgery recipients, Essig creates an unforgettable portrait of contemporary America. American Plastic is a powerful and original commentary on the relationship between cosmetic surgery, credit, and culture.

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Book SynopsisHow can we balance a central bank's authority and independence with needed accountability and constraints? Drawn from a 2015 Hoover Institution conference, this book features distinguished scholars and policy makers' discussing this and other key questions.

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Book SynopsisThis fully revised, updated and expanded edition of the industry standard text takes the reader through the complete life cycle of a syndicated loan. Beginning with the opening phase of mandating a lead bank, Syndicated Lending delves through negotiation, documentation, syndication and closing transactions to conclude with the secondary market.This seventh edition includes new supplements dealing with:regional syndicated loan marketsgrowing regulatory frameworkthe influence of Brexit on the marketthe challenges thrown up by the transition from LIBOR-based pricing to the proposed risk-free rate environment.The practice of syndicated lending is similarly explored in its historical context, by following the ups and downs of this most flexible, and enduring, financial market. Plus, while the market moves toward digitisation, summaries are provided for the leading technology solutions being developed.With practical explanations, reflecting practices developed by the LMA, from borrowers, bankers and investors, this book offers insight from industry professionals with decades of experience as well as detailed examples of pricing methodology. There is also an up-to-date discussion of documentary issues, including annotated term sheets and loan documents, contributed by Clifford Chance.This is the essential guide to the commercial and documentary aspects of syndicated lending for lenders, borrowers, investors, lawyers, regulators and service providers.

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Book SynopsisThis Element will overview research using models to understand scientific practice. It argues that while these models are epistemically useful, the best way to employ most of them to understand and improve science is in combination with empirical methods and other sorts of theorizing.Table of Contents1. Introduction; 2. The credit economy; 3. The natural selection of science; 4. Social networks and scientific knowledge; 5. Epistemic landscapes; 6. The replication crisis and methodological reform; 7. The replication crisis and methodological reform; Bibliography.

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Book SynopsisThis book delves into the essential concepts and technologies of acquiring systems. It fills the gap left by manuals and standards and provides practical knowledge and insight that allow engineers to navigate systems as well as the massive tomes containing standards and manuals. Dedicated to card acquiring exclusively, the book covers: Payment cards and protocols EMV contact chip and contactless transactions Disputes, arbitration, and compliance Data security standards in the payment card industry Validation algorithms Code tables Basic cryptography Pin block formats and algorithms When necessary the book discusses issuer-side features or standards insomuch as they are required for the sake of completeness. For example, protocols such as EMV 3-D Secure are not covered to the last exhaustiTable of Contents1. Overview of Card Payments Industry. 2. Card-Present Technology. 3. Card-Not-Present Environment. 4. Contact Chip Transactions. 5. Disputes, Arbitration, and Compliance. 6. Data Security Standards in Payment Card Industry. 7. Key Management with Hardware Security Modules (HSMs). 8. Other Payment Methods.

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Book SynopsisCredit is essential in the modern world and creates wealth, provided it is used wisely. The Global Credit Crisis during 2008/2009 has shown that sound understanding of underlying credit risk is crucial. If credit freezes, almost every activity in the economy is affected.Table of ContentsPreface xvii Part I Introduction 1 Credit Basics 3 1.1 Meaning of Credit 4 1.2 Role of Credit 6 1.3 Credit Market 6 1.4 Credit – Advantages and Disadvantages 7 1.4.1 Merits of Credit 7 1.4.2 Demerits of Credit Usage 9 1.4.3 Is Wealth Creation Through Use of Credit Easy and Simple? 10 1.5 Suppliers of Credit 11 1.6 Credit Risk Study 12 Appendix: Credit Creation 13 Questions/Exercises 14 2 Essentials of Credit Risk Analysis 15 2.1 Meaning of Credit Risk 15 2.2 Causes of Credit Risk 16 2.3 Credit Risk and Return 17 2.4 Credit Risk Analysis 17 2.5 Historical Progress of Credit Risk Analysis 19 2.6 Need for Credit Risk Analysis 19 2.7 Challenges of Credit Risk Analysis 22 2.7.1 The Art and Science of Credit Risk Analysis 22 2.8 Elements of Credit Risk Analysis 24 Questions/Exercises 25 3 Credit Risk Management 27 3.1 Strategic Position of Credit Risk Management 27 3.2 Credit Risk Management Context 28 3.3 Credit Risk Management Objectives 28 3.4 Credit Risk Management Structure 29 3.5 Credit Risk Culture 29 3.6 Credit Risk Appetite 30 3.7 Credit Risk Management in Non-Financial Firms 31 3.8 Credit Risk Management in Financial Intermediaries 31 3.8.1 Stages of Credit Risk Management in Financial Intermediaries 31 3.8.2 Credit Risk Management Process 33 Questions/Exercises 34 Part II Firm (or) Obligor Credit Risk 4 Fundamental Firm/Obligor-Level Risks 37 4.1 Firm (or) Obligor Risk Classification 37 4.1.1 Business Risks or Operating Risks (OR) 37 4.1.2 Financial Risks (FR) 38 4.2 Risk Matrix 39 4.3 Different Risk Levels 39 4.3.1 Low Operating Risk and Low Financial Risk 39 4.3.2 Low Operating Risk and Medium Financial Risk 39 4.3.3 Low Operating Risk and High Financial Risk 40 4.3.4 Medium Operating Risk and Low Financial Risk 40 4.3.5 Medium Operating Risk and Medium Financial Risk 40 4.3.6 Medium Operating Risk and High Financial Risk 40 4.3.7 High Operating Risk and Low Financial Risk 40 4.3.8 High Operating Risk and Medium Financial Risk 41 4.3.9 High Operating Risk and High Financial Risk 41 Questions/Exercises 42 5 External Risks 43 5.1 Business Cycle 43 5.1.1 Benefits of Study of Business Cycles 45 5.1.2 Credit Risk in the Business Cycle 46 5.2 Economic Conditions 46 5.2.1 Private Consumption 47 5.2.2 Government Spending 47 5.2.3 Investment 48 5.2.4 Imports and Exports 48 5.2.5 How to Link NI Components to the Firm 48 5.2.6 Benefits of Study of National Income 49 5.3 Inflation and Deflation 50 5.4 Balance of Payments and Exchange Rates 51 5.5 Political 52 5.6 Fiscal Policy 53 5.7 Monetary Policy 53 5.8 Demographic Factors 54 5.9 Regulatory Framework 55 5.10 Technology 55 5.11 Environment Issues 55 5.12 International Developments 56 5.13 Others 56 5.14 Monitoring External Risks 57 Questions/Exercises 58 6 Industry Risks 61 6.1 Understanding Obligor’s Industry or Market 61 6.1.1 Sector vs. Industry vs. Market Segment 61 6.1.2 Challenges of Industry Classification 62 6.2 Types of Industry Risks 63 6.3 Industry Life Cycle 64 6.4 Permanence of Industry 65 6.5 Government Support 65 6.6 Industry and Factors of Production 66 6.7 Industry and Business Cycles 66 6.8 Industry Profitability 67 6.8.1 Competition Among the Existing Firms Within the Industry 68 6.8.2 Threat of New Entrants 68 6.8.3 Threat of Substitute Products 69 6.8.4 Bargaining Power of Buyers 69 6.8.5 Bargaining Power of Suppliers 70 6.9 Competitor/Peer Group Analysis 71 Questions/Exercises 77 7 Entity-Level Risks 79 7.1 Understanding the Activity 80 7.2 Risk Context and Management 81 7.3 Internal Risk Identification Steps 82 7.3.1 Interviews and Questioning 82 7.3.2 Market Developments and Peer Comparison 83 7.4 SWOT Analysis 83 7.5 Business Strategy Analysis 84 7.5.1 Cost Leadership 85 7.5.2 Differentiation 86 7.5.3 Contraction 86 7.5.4 Market Penetration 86 7.5.5 New Markets 87 7.5.6 New Products/Product Synergy Diversification 87 7.5.7 Product/Market Diversification 87 7.5.8 Consolidation 87 7.5.9 Merger/Takeover 87 7.5.10 Expansion 88 7.5.11 Cost Control 88 7.5.12 Focus 88 7.6 Pitfalls in Strategy 89 7.7 Management Analysis 90 7.7.1 One-Man Rule 91 7.7.2 Joint Chairman/CEO/MGD Position 91 7.7.3 Imbalance in Top Management Team 91 7.7.4 Weak Finance Function 92 7.7.5 Lack of Skilled Managers (or Inability to Attract Skilled Managers in Key Positions) 92 7.7.6 Disharmony in Management 92 7.7.7 Change in Ownership 92 7.7.8 Cultural Rigidity 92 7.7.9 Lack of Internal Controls 93 7.7.10 Low Staff Morale 93 7.7.11 Fraudulent Management 93 7.7.12 Myopic Vision 93 7.7.13 Big Projects 93 7.7.14 Inadequate Response to Change 94 7.7.15 Poor Corporate Governance 94 7.8 Other Internal Risks 94 Questions/Exercises 97 8 Financial Risks 99 8.1 Importance of Financial Statements 99 8.2 Quality and Quantity of Financial Statements 101 8.2.1 Quality of Financial Statements 101 8.2.2 Quantity of Financial Statements 102 8.3 Role of Historical Financial Statements 102 8.4 Financial Analysis 103 8.4.1 Balance Sheet 103 8.4.2 Income Statement (or) Profit and Loss Account 104 8.4.3 Cash Flow Statement (CFS) 105 8.5 Analytical Tools 105 8.5.1 Accounting Analysis 105 8.5.2 Common Sizing Analysis (CSA) 107 8.5.3 Indexed Trend Analysis (ITA) 110 8.5.4 Ratio Analysis 113 8.6 Solvency Ratios 115 8.6.1 Liquidity Ratios 115 8.6.2 Long Term Solvency Ratios 117 8.6.3 External Finance Ratios 120 8.6.4 Dividend and Equity Ratios 120 8.6.5 Cash Flow Ratios 121 8.7 Operational Ratios 123 8.7.1 Performance Ratios 123 8.7.2 Profitability Ratios 124 8.7.3 Return on Investment (ROI) Ratios 125 8.7.4 Asset Management (or Activity) Ratios 126 8.7.5 Leverage (Operating and Financial) Ratios 128 8.7.6 Cost-Volume-Profit (CVP) Ratios 133 8.8 Encapsulated Ratios 134 8.8.1 Dupont Model 134 8.8.2 Predictive Power of Ratios 135 Questions/Exercises 143 9 Integrated View of Firm-Level Risks 147 9.1 Relevance of an Integrated View 147 9.2 Judgement 147 9.3 Identifying Significant Credit Risks 148 9.4 Risk Mitigants 150 9.5 Types of Mitigants 150 9.5.1 Qualitative Mitigants 150 9.5.2 Quantitative Mitigants 152 9.5.3 Difference between Qualitative and Quantitative Mitigants 153 9.6 Principles to be Borne in Mind While Selecting Mitigants 153 9.7 Monitoring of Credit Risk 154 Appendix: Credit Risks and Possible Mitigants 155 Questions/Exercises 158 10 Credit Rating and Probability of Default 161 10.1 Credit Risk Grading 161 10.1.1 Linking EIIF Evaluation to Credit Risk Grades 161 10.1.2 Benefits of Credit Risk Grade System 163 10.2 Probability of Default 163 10.2.1 Benefits of PD Values 165 10.2.2 PD Values and Credit Decisions 165 10.3 External vs. Internal Rating 166 10.3.1 Reliability of External Ratings 167 10.3.2 Internal Ratings 168 10.4 PD in Credit Structural Models 169 10.4.1 The Merton Model (1974) 169 Questions/Exercises 172 Part III Credit Risks – Project and Working Capital 11 Credit Risks in Project Finance 177 11.1 Distinctive Features of Project Finance 177 11.2 Types of Project Finance 178 11.3 Reasons for Project Finance 179 11.3.1 Scarce Resources 179 11.3.2 Risk Sharing 179 11.3.3 Off-Balance Sheet Debt 179 11.3.4 Avoidance of Restrictive Covenants 179 11.3.5 Tax Considerations 180 11.3.6 Extended Tenor 180 11.4 Parties Involved in Project Finance 180 11.4.1 Sponsors 180 11.4.2 Project Lenders 180 11.4.3 Project Contractors/Consultants/Lawyers/Accountants 181 11.4.4 Governments 181 11.4.5 Multilateral Agencies 181 11.5 Phases of Project and Risks 182 11.5.1 Construction Phase Risks 182 11.5.2 Start-Up Phase Risks 182 11.5.3 Operational Phase Risks 183 11.6 Project Credit Risks 183 11.6.1 EIIF Risks 183 11.6.2 Project Specific Risks 184 11.6.3 Project Financial Viability Risks 186 11.7 Financial Study 187 11.7.1 Cash Flow Forecasts 187 11.7.2 Estimation of the Economic Worth of the Project 189 11.7.3 Assessing Creditworthiness – Building a Lender’s Case 190 11.8 Project Credit Risk Mitigants 192 Questions/Exercises 202 12 Credit Risks in Working Capital 207 12.1 Definition of Working Capital 207 12.1.1 Working Capital Cycle – Finance Manager’s Key Concern 207 12.1.2 Working Capital Cycle – Lending Bank’s Point of View 208 12.2 Assessing Working Capital through the Balance Sheet 208 12.3 Working Capital Ratios 210 12.4 Working Capital Cycle 212 12.5 Working Capital vs. Fixed Capital 216 12.6 Working Capital Behaviour 216 12.6.1 Availability of Finance 217 12.6.2 Changes in Trade Terms 218 12.6.3 Changes in Business Volume 219 12.6.4 Price Changes 222 12.6.5 Others 222 12.7 Working Capital, Profitability and Cash Flows 223 12.8 Working Capital Risks 225 12.8.1 Over-trading 225 12.8.2 Diversion Risk 227 12.8.3 Inadequate Financial Management 228 12.8.4 Inflation Risk 228 12.8.5 Inadequate Provisioning of Working Capital in Original Project Costs 228 12.8.6 Losses and Reducing Profitability 228 12.8.7 Inadequate Structuring of Facilities by Banks 229 12.8.8 Unforeseen Contingencies 229 12.9 Impact of Working Capital Risks 229 12.10 Working Capital Risk Mitigants 230 12.10.1 Covenants 230 12.10.2 Cancellation/Tightening/Temporary Freeze of Facilities 230 12.10.3 Increase Pricing 231 12.10.4 Liquidation of Non-Core Assets 231 12.10.5 Owners’ Injection/Strengthening Net Working Capital 231 12.10.6 Improvement of Working Capital Management 231 12.10.7 Insure against the Risk from Unforeseen Contingencies 231 12.11 Working Capital Financing 232 Questions/Exercises 236 Part IV Credit Portfolio Risks 13 Credit Portfolio Fundamentals 241 13.1 Credit Portfolio vs. Equity Portfolio 241 13.2 Criticality of Portfolio Credit Risks 242 13.3 Benefits of Credit Portfolio Study 242 13.3.1 Active Credit Portfolio Management 242 13.3.2 Overall Credit Risk Reduction 243 13.3.3 Optimizes Liquidity 244 13.3.4 Assists Sales and Marketing 244 13.3.5 Insights into Sectoral Risk Exposures 244 13.3.6 Solves the Capital Dilemma 245 13.3.7 Portfolio Management Strategies 246 13.3.8 Credit Quality Issues 247 13.4 Portfolio Analysis 247 13.5 Credit Portfolio Risk vs. Return 249 Appendix: Organizational Conflict in Credit Risk Management 249 Questions/Exercises 251 14 Major Portfolio Risks 253 14.1 Systematic Risk 253 14.1.1 Triggers of Systematic Risk 254 14.1.2 Consequences of Systematic Risk 254 14.2 Diversifiable Risk 255 14.3 Concentration 258 14.3.1 Industry or Sector Concentration 258 14.3.2 Exposure or Name Concentration 259 14.3.3 Region/Location/Country Concentration 259 14.3.4 Foreign Currency Concentration 259 14.3.5 Collateral Risk 260 14.3.6 Maturity Risks 260 14.3.7 Funding Risk 261 14.3.8 Correlation Risks 262 14.4 Credit Portfolio Beta 263 Questions/Exercises 263 15 Firm Risks to Portfolio Risks and Capital Adequacy 265 15.1 Obligor PD and Portfolio PD 265 15.2 Migration Risk 266 15.2.1 Firm Credit Risk Migration 266 15.2.2 Portfolio Risk Migration 268 15.2.3 Benefits of Migration Risk Study 269 15.3 Default Risk 269 15.3.1 Firm-Level Defaults 269 15.3.2 Portfolio-Level Defaults 270 15.4 Loss Given Default (LGD) 270 15.5 Expected Loss (EL) 271 15.5.1 Obligor EL 271 15.5.2 Portfolio EL 271 15.6 Provisioning 272 15.6.1 Provisioning – Firm Level 272 15.6.2 Portfolio-Level Provisioning 273 15.7 Credit Loss Distribution 274 15.7.1 Characteristics of Credit Loss Distribution 275 15.7.2 Benefits of Developing a Credit Risk (or Loss) Distribution 275 15.8 Economic Capital 276 15.8.1 Regulatory Capital vs. Economic Capital 277 15.8.2 Measuring Economic Capital 278 15.8.3 Optimizing Economic Capital 279 Questions/Exercises 282 16 Credit Risk and The Basel Accords 285 16.1 Basel Accords 285 16.2 Basel I (1988) – First Basel Accord 286 16.2.1 Criticisms of Basel I 287 16.3 Basel Accord II (2006) 288 16.3.1 Alternative Approaches for Credit Risk in Basel II 289 16.3.2 Risk Weighted Assets (RWA) and Capital Adequacy in Basel II 293 16.3.3 Do Higher LGD and PD Always Translate into Higher RWA under the IRB Approach? 294 16.3.4 Criticisms of Basel II 295 16.4 Basel III 296 16.4.1 Credit Risk Measurement in Basel III 297 16.4.2 Other Key Features of Basel III 298 16.4.3 Can Basel III Prevent Future Financial/Credit Crises? 299 Appendix 300 Questions/Exercises 302 Part V Portfolio Risk Mitigants 17 Credit Risk Diversification 305 17.1 Traditional Diversification 305 17.1.1 Industry Limit 306 17.1.2 Counterparty Limit 307 17.1.3 Region-Wise Restriction 307 17.1.4 Size 308 17.2 Modern Diversification of Credit Portfolio 309 17.2.1 Portfolio Selection Theory 309 17.2.2 Application of PS in Credit Portfolio 310 17.2.3 More Tools to Study Diversification of Portfolio Risks 314 17.3 Correlations in Credit Risk Models 315 Questions/Exercises 315 18 Trading of Credit Assets 317 18.1 Syndicated Loans/Credit Assets 317 18.2 Securitization 318 18.2.1 Asset Backed Securities (ABS) 319 18.2.2 Collateralized Debt Obligations (CDO) 319 18.2.3 Downfall of CDOs (and Similar Securitized Instruments) 321 18.3 Distressed Debt 321 18.4 Factoring 322 18.5 Distressed Receivables 322 Questions/Exercises 322 19 Credit Derivatives 323 19.1 Meaning of a Credit Derivative 323 19.1.1 Credit Event 324 19.2 Credit Default Swap (CDS) 324 19.2.1 Is CDS an Insurance? 326 19.2.2 CDS and Speculation 327 19.2.3 Uses of CDS 327 19.2.4 Sovereign CDS 329 19.2.5 Criticism of CDS 329 19.3 Total Return Swap 330 19.3.1 Uses of TR Swap 331 19.4 Credit Option (CO) 332 19.5 Credit Spread Options (CSO) 333 19.6 Credit Derivative Linked Structures 333 19.7 Future of Credit Derivatives 334 19.8 Credit Derivatives and Over-the-Counter (OTC) Markets 334 Questions/Exercises 334 Part VI Credit Risk Pricing 20 Pricing Basics 337 20.1 Credit Pricing Factors 337 20.1.1 Credit Risk Premium 337 20.1.2 Portfolio Risk 339 20.1.3 Cost of Capital 340 20.1.4 Cost of Leverage 340 20.1.5 Sector Risks 340 20.1.6 Overheads 341 20.1.7 Other Factors 341 20.2 Pricing Structure 342 20.2.1 Interest Rates 342 20.2.2 Commission and Fees 344 20.3 Credit Risk Pricing Model 344 20.4 Prime Lending Rate 345 Questions/Exercises 348 21 Pricing Methods 349 21.1 RORAC (Return on Risk-Adjusted Capital) Based Pricing 349 21.2 Market Determined 351 21.3 Economic Profit Based Pricing 351 21.4 Cost Plus 353 21.5 Structured Pricing 353 21.6 Grid Pricing 354 21.7 Net Present Value (NPV) Pricing 354 21.8 RANPV (Risk-Adjusted NPV) Pricing 355 Questions/Exercises 355 Part VII The Last Line of Defence – Security 22 Security Basics 359 22.1 Need for Security 359 22.2 Merits and Demerits of a Security 360 22.2.1 Advantages to the Creditor 360 22.2.2 Disadvantages to the Creditor 360 22.2.3 Advantages to the Borrower 361 22.2.4 Disadvantages to the Borrower 361 22.3 Attributes of a Good Security 362 22.4 Security and Pricing 362 22.5 Impact of Systematic Risks on Security 364 22.6 Facility Grades 364 Questions/Exercises 366 23 Collaterals and Covenants 367 23.1 Tangible Security 367 23.1.1 Deposits (with Banks, Financial Institutions, etc.) 367 23.1.2 Stock and Shares 367 23.1.3 Property/Land 367 23.1.4 Goods 368 23.1.5 Gold or Other Precious Metals 368 23.1.6 Bank Guarantees/Letters of Credit 368 23.2 Intangible Security 369 23.2.1 Unregistered Charges 369 23.2.2 Assignment of Debtors 369 23.2.3 Corporate Guarantee 369 23.2.4 Letter of Comfort (LOC) 370 23.2.5 Letter of Awareness 370 23.2.6 Letter of Negative Pledge 370 23.3 Methods of Taking Security 371 23.3.1 Mortgage 371 23.3.2 Pledge 371 23.3.3 Hypothecation 372 23.3.4 Lien 372 23.4 Realizing Security 372 23.5 Covenants – A Trigger to Seek Additional Security 373 23.5.1 Financial Covenants 373 23.5.2 Non-Financial Covenants 376 Questions/Exercises 377 Part VIII Credit Crisis 24 Road to Credit Crisis 381 24.1 Credit and Growth 381 24.2 Role of Banks 382 24.2.1 Credit Creation 382 24.2.2 Confidence in Banking 383 24.2.3 Ultimate Use of Credit 384 24.3 Formation of Credit Bubbles 385 24.4 Types of Credit Bubble 386 24.5 Credit Bubble Explosion 387 Questions/Exercises 390 25 2008 Credit Crisis 393 25.1 Credit Asset – Prime vs. Sub-Prime 393 25.2 Securitization 394 25.2.1 Higher Risk Appetite 394 25.2.2 Availability of CDS 395 25.3 US Housing Bubble 396 25.4 Role of OTC Derivatives 398 25.4.1 Reasons for Popularity of OTC Derivatives 399 25.4.2 Complexity and Opaqueness – the Hallmark of OTC Derivatives 399 25.4.3 Systemic Risk and OTC Derivatives 400 25.5 Role of Rating Agencies 400 25.6 Why Did the Bubble Burst? 401 25.7 Consequences 402 25.7.1 2007 402 25.7.2 2008 402 25.7.3 2009 403 25.8 Impact of the Lehman Collapse 403 25.9 Housing Crisis to Credit Crisis to Economic Crisis 404 25.10 Common Factors 1929 vs. 2009 406 25.11 Lessons of the 2008 Credit Crisis 407 Questions/Exercises 410 Bibliography 411 Index 415

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Book SynopsisMake your money make a differenceand enjoy attractive returns Small Money, Big Impactexplores and explains the globally growing importance of impact investing. Today, the investor''s perspective has become as important as the actual social impact. Based on their experience with over 25 million micro borrowers, the authors delve into the mechanics, considerations, data and strategies that make microloans and impact investing an attractive asset class. From the World Bank to the individual investor, impact investing is attracting more and more attention. Impact investing is a global megatrend and is reshaping the way people invest as pension funds, insurance companies, foundations, family offices and private investors jump on board. This book explains for the first time how it works, why it works and what you should know if you''re ready to help change the world. Impact investing has proven over the last 20 years as the first-line offense against crushing pTable of ContentsForeword ix Preface xi Acknowledgments xiii About the Authors xv CHAPTER 1 Introduction 1 1.1 Fighting Poverty 2 1.2 Investing in Financial Infrastructure 7 1.3 Content Overview 8 Notes 9 CHAPTER 2 Microfinance – the Concept 11 2.1 History 12 2.2 Definition and Goals 15 2.3 Double Bottom Line 18 2.4 Financial Inclusion 21 2.5 Market Participants 24 2.6 Impact Investing 25 2.7 Preliminary Conclusions 29 Notes 31 CHAPTER 3 The Microfinance Value Chain 33 3.1 The Protagonists and Their Tasks 34 3.2 Regulatory Environment 36 3.3 Development Finance Institutions 37 3.4 Market Overview 39 3.5 Geneva: Birthplace of Modern Microfinance 42 3.6 Preliminary Conclusions 46 Notes 47 CHAPTER 4 Micro Entrepreneurs 49 4.1 Definition 50 4.2 Needs and Requirements 52 4.3 Micro Entrepreneurs 59 4.4 Preliminary Conclusions 67 Notes 68 CHAPTER 5 Microfinance Institutions 71 5.1 Definition and Goals 72 5.2 Types of MFIs 73 5.3 MFI Funding 76 5.4 Services 85 5.5 Regulation 88 5.6 Preliminary Conclusions 94 Notes 96 CHAPTER 6 Lending Methodologies 99 6.1 Traditional Credit Theory and Microfinance 100 6.2 Lending Methodologies 101 6.3 Socio-Economic Factors 104 6.4 Late Payments and Over-Indebtedness of Clients 108 6.5 Default Prevention and Restructuring 110 6.6 Occupation: Loan Officer 113 6.7 Preliminary Conclusions 114 Notes 116 CHAPTER 7 Loan Pricing 119 7.1 Interest Rate Components 120 7.2 Setting Sustainable Interest Rates 127 7.3 Regional Differences 127 7.4 Loan Recipients’ Willingness to Repay 129 7.5 Preliminary Conclusions 130 Notes 132 CHAPTER 8 Social Performance Management 133 8.1 Social Performance 134 8.2 Measuring Social Performance 135 8.3 Measuring the Outcome of Microfinance 149 8.4 Social Rating Agencies 151 8.5 Technical Assistance 153 8.6 Linking Social Performance with Profitability 156 8.7 Preliminary Conclusions 157 Notes 159 CHAPTER 9 Beyond the Reach of Microfinance? 161 9.1 Prejudices and Reservations 162 9.2 Preliminary Conclusions 171 Notes 172 CHAPTER 10 Investing in Microfinance 175 10.1 Market Development 176 10.2 Microfinance Investment Vehicles 177 10.3 The Investment Process 181 10.4 Loan Agreements and Pricing Policy 187 10.5 Microfinance in the Overall Investment Portfolio 191 10.6 Incentives for Investing in Microfinance 195 10.7 Preliminary Conclusions 197 Notes 199 CHAPTER 11 Real and Financial Economy 201 11.1 Microfinance Is Crisis-Proof 202 11.2 Real Economy and Local Influencing Factors 203 11.3 Financial Economy 205 11.4 Stability Mechanisms 207 11.5 Preliminary Conclusions 208 Notes 209 CHAPTER 12 Discussion of Results and Conclusions 211 12.1 Win-Win-Win 212 12.2 Onwards and Upwards 212 Notes 215 APPENDIX A Example of a Loan Application 217 APPENDIX B Due Diligence of Socio-Economic Impact Factors 221 List of Abbreviations 227 Glossary 229 References 233 Photo Credits 243 Index 245

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Book SynopsisThis book offers best practice advice on how to meet anti-money laundering (AML) regulations and will help you put together an effective framework to meet your legal obligations. It includes a comprehensive selection of example documents, checklists and an unrivalled collection of training materials.Trade ReviewTBDTable of Contents Chapter 1: Fundamental Concepts Chapter 2: The International AML and CFT Framework Chapter 3: The Role, Structure and Position of the AML/CFT Compliance Function Chapter 4: CDD, KYC and the Risk-Based Approach Chapter 5: Reputational risk Chapter 6: Suspicion recognition Chapter 7: International Cooperation Chapter 8: Modern Money Laundering and Terrorist Financing: Two Case Studies

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Book SynopsisA 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 Opérations 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 Péréon's Moralizing the Market explores the dynamics of policy transfer in securities regulationa subject that has rarely been considered from a historical perspective. That regulation has been used to attract investors and foster market development challenges Table of ContentsAcknowledgmentsIntroduction1. A Minister on a Mission2. "Thieves!"3. The Paris Bourse in the 1960s: A Basket Case?4. France Looks at America5. Drafting the Ordonnance6. Takeoff7. The Red Flag over the "Temple of Gold"8. In Search of Legitimacy9. Mr. Chatenet Goes to Washington10. Mission Accomplished?ConclusionNotesBibliographyIndex

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Book SynopsisWe 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.Trade Review"Abolishing household debt is heresy to the politicians who brought us bank bailouts and austerity. Johnna Montgomerie explains why so many families in Britain are dependent on borrowing and offers concrete proposals for ending the debt-fuelled growth."—Paul Mason, journalist and author "In this book, Johnna Montgomerie demonstrates that an apparently radical idea, abolishing household debt, is just common sense. Buy it, read it, tell others to do the same."—John Weeks, Coordinator of the Progressive Economy Forum "It is not often that I read a non-fiction book that is an easy read, explains complex economic concepts with metaphors that are simple enough to understand, and make perfect sense. Should we abolish household debts? by Johnna Montgomerie is such a book."—Financial Times "Concise, informative."—Morning Star

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Book SynopsisWe 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.Trade Review"Abolishing household debt is heresy to the politicians who brought us bank bailouts and austerity. Johnna Montgomerie explains why so many families in Britain are dependent on borrowing and offers concrete proposals for ending the debt-fuelled growth."—Paul Mason, journalist and author "In this book, Johnna Montgomerie demonstrates that an apparently radical idea, abolishing household debt, is just common sense. Buy it, read it, tell others to do the same."—John Weeks, Coordinator of the Progressive Economy Forum "It is not often that I read a non-fiction book that is an easy read, explains complex economic concepts with metaphors that are simple enough to understand, and make perfect sense. Should we abolish household debts? by Johnna Montgomerie is such a book."—Financial Times "Concise, informative."—Morning Star

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Book Synopsis

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Book Synopsis

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Book SynopsisCredit expert John Ulzheimer can give you all the tools you need to master the world of credit, before or after you get into trouble, and take the power back into your own hands.Most credit books promise quick fixes and easy solutions to bad credit, but the truth is there is no quick fix when it comes to credit. Your best strategy as a smart consumer is to understand your credit inside and out. Topics covered include: The difference between a credit score and a credit report The best way to deal with collection agencies How to monitor your credit report Protecting yourself from identity theft The impact of student loans on your credit score How to opt out of unwanted credit card offers The Smart Consumer’s Guide to Good Credit answers all of your questions about credit (including the ones you didn’t even know you should be asking!) and yes, even explains the best ways to work toward improving a bad credit score.

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Book SynopsisThis book discusses the three amendments that the SEC Commission is proposing that would impose additional requirements on nationally recognised statistical rating organisations ("NRSROs") in order to address concerns about the integrity of their credit rating procedures in the light of the role they played in determining credit ratings for securities collateralised by or linked to subprime residential mortgages. The Commission today makes a proposal related to structured finance products rating symbology. Thirdly, this book discusses the rule amendments that the Commission intends to propose that would be intended to reduce undue reliance in the Commission''s rules on NRSRO ratings. In August 2007, the Securities and Exchange Commission''s Staff initiated examinations of three credit rating agencies, to review their role in the recent turmoil in the subprime mortgage-related securities markets. The purpose of the examinations was to develop an understanding of the practices of the rating agencies surrounding the rating of RMBS and CDOs. This book includes a summary report by the Commission''s Staff of the issues identified in those examinations. Finally, an overview of the subprime mortgage securitisation process is provided as well as the seven key informational frictions that arise. Ways that market participants work to minimise these frictions is discussed and how this process broke down is speculated. Key structural features of a typical subprime securitisation is presented, and how rating agencies assign credit ratings to mortgage-backed securities is documented. How these agencies monitor the performance of mortgage pools over time is also outlined.

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