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Ebook The Determinants of Foreign Currency Hedging: Does Foreign Currency Debt Induce a Bias?

... includes foreign debt users who have more liabilities to hedge and not because of financial distress. The underlying premise of this ... foreign revenues. Therefore, by equating “FC hedger” with “FC derivative user,” the former would be characterised as a ...

Story - puput - 11/10/2010 - 03:01 - 0 comments - 0 attachments

Ebook Pass-through, Exposure, and the Currency Composition of Debt

... the exchange rate. The first stylized fact is consistent with the emerging markets literature, where mounting empirical evidence shows ... because of the exporters in the economy, and that they hedge their currency exposure using dollar debt. In the model, high dollar ...

Story - puput - 04/12/2011 - 07:35 - 0 comments - 0 attachments

Ebook The Contractual Governance of Private Equity and Hedge Funds

This article helps to fill the gap in the hedge fund and private equity debate by focusing on the contractual basis of ... They employ, also, a wide range of investment strategies with varying levels of liquidity. Not only do private equity funds advance ...

Story - puput - 10/25/2010 - 08:27 - 0 comments - 0 attachments

Ebook Hedging Foreign Exchange Risk in Microfinance Investments

... against the U.S. dollar, then the MFI will be saddled with a larger than anticipated debt obligation. Recognizing that MFIs are ... in particular, appears promising: creating a “natural hedge” by pooling loans denominated in different emerging market currencies ...

Story - puput - 01/14/2011 - 04:37 - 0 comments - 0 attachments

Ebook Finance with a Focus on Dollar Debt: Evidence from a Survey of Lebanese Firms

... adversely affected by the peso devaluation in 1994. Firms with high levels of foreign currency debt subsequently decreased their investment compared with ... currency mismatch, and reducing incentives to hedge the associated exchange rate risk. These government guarantees underpin ...

Story - puput - 10/20/2010 - 07:51 - 0 comments - 0 attachments

Ebook Financial Market Imperfections and the impact of exchange rate movements on exports

... demand and prices, so that results should be interpreted with very much care. Economists agree to say that it is more costly to sell ... the fact that firms in emerging market countries do not hedge to absorb exchange rate shocks. Eichengreen and Hausman (2000) suggest ...

Story - puput - 11/01/2010 - 04:51 - 0 comments - 0 attachments

Ebook Cash Flow Hedging and Liquidity Choices

... by the use of the others. Firms tend to substitute cash with either cash flow hedging, lines of credit, or both. Furthermore, firms ... work on risk management emphasizes the importance to hedge against adverse cash flow shocks that might force firms to (i) forgo ...

Story - puput - 12/14/2010 - 03:58 - 0 comments - 0 attachments

Ebook The Effects of Derivatives on Firm Risk and Value

... evidence that hedging foreign currency risk is associated with large (approximately 4%) increases in market value; Graham and Rogers ... show that the magnitude of the cash flows generated by hedge portfolios is modest and unlikely to account for such large changes in ...

Story - puput - 11/17/2010 - 02:49 - 0 comments - 0 attachments

Ebook Background Paper East Asian Finance Study Deepening Capital Markets in East Asia

... do not have ready access to investment capital . With its total size of US$5.5 trillion, the banking sector continues to ... well developed and participants in these bond markets can hedge interest, currency and credit risks. As the premier financial centers, ...

Story - puput - 10/08/2010 - 07:41 - 0 comments - 0 attachments

Ebook Credit Risk And Risk Neutral Default Probabilities: Information About Rating Migrations And Defaults

... not unrelated since changes in either risk are associated with security price changes. However, market risk is generally considered to be ... recently few derivative securities were available to help hedge credit risk. This is now changing with the advent of credit derivatives, ...

Story - wulan - 11/19/2009 - 08:06 - 0 comments - 0 attachments


PDF Ebook Meta-Analysis of The Effectiveness of A Vegetarian Diet In The Treatment and Management of Type 2 Diabetes Mellitus

Submitted by antoq on Sat, 01/29/2011 - 07:49

According to data from the Behavioral Risk Factor Surveillance System (2007), 25.6% of Americans are obese with 26.4% of men and 24.8% of women being obese. Obesity is marked by a condition of excess adipose (fat) tissue in the body. An unhealthy diet and lack of exercise are the major culprits to this epidemic. This results in numerous complications, one of which is diabetes mellitus (DM), a disorder of the metabolism.

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Ebook Interest Rate Policy and Supply-side Adjustment Dynamics

Submitted by puput on Mon, 04/18/2011 - 04:23

Policy implications of standard consensus models are typically derived from simulations that rely on specific assumptions with regard to the equilibrium level of production. Thereby, the evolution of equilibrium output rests on an asymmetric separation of supply-side and demand-side adjustment to macroeconomic shocks. In particular, this consensus perspective does not account for demand-side stimulus on an economy’s productive capacity.

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Ebook Did Securitization Lead to Lax Screening? Evidence From Subprime Loans

Submitted by puput on Fri, 06/18/2010 - 02:20

Securitization, converting illiquid assets into liquid securities, has grown tremendously in recent years, with the securitized universe of mortgage loans reaching $3.6 trillion in 2006. The option to sell loans to investors has transformed the traditional role of financial intermediaries in the mortgage market from “buying and holding” to “buying and selling.” The perceived benefits of this financial innovation, such as improving risk sharing and reducing banks’ cost of capital, are widely cited (Pennacchi 1988). However, in light of the 50% increase in delinquencies in the heavily securitized subprime housing market from 2005 to 2007, critiques of the securitization process have gained increased prominence (Stiglitz 2007).

The rationale for these concerns derives from theories of financial intermediation. Delegating monitoring to a single lender avoids the problems of duplication, coordination failure, and free-rider problems associated with multiple lenders (Diamond 1984). However, in order for a lender to screen and monitor, it must be given appropriate incentives (Holmstrom and Tirole 1997) and this is provided by the illiquid loans on their balance sheet (Diamond and Rajan 2003). By creating distance between a loan’s originator and the bearer of the loan’s default risk, securitization potentially reduces lenders’ incentives to carefully screen and monitor borrowers (Petersen and Rajan 2002). On the other hand, proponents of securitization argue reputation concerns or regulatory oversight may prevent moral hazard on the part of lenders. What the effects of securitization on screening are, thus, remains an empirical question.

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