...Harvard University ECON-S 1941 Derivatives and Risk Management Case Write-Up 3: First American Bank: Credit Default Swaps One of Charles Bank International’s (CBI) clients, CapEX Unlimited (CEU), has asked for a new $50 million loan. However, if CBI grants it this loan is exposure to CEU is too large, i.e. the concentration risk exceeds CBI’s internal guidelines. Now, CBI has approached First American Bank (FAB) to see if a credit default swap between FAB and itself can be established, which would mitigate the extra credit risk for CBI from the new loan. What is a default swap? How does it work? Generally, credit derivatives are contracts where the payoff depends on the creditworthiness of one or more companies or countries. These contracts allow firms to trade credit risk in similar to the way they trade market risk. Roughly, credit risk can be defined as the risk that borrowers or counterparties (in derivatives transactions) may default. Credit derivatives can be categorized as single-name or multiname contracts. A credit default swap (CDS) is a single-name credit derivative contract between two counterparties. It provides insurance against the risk of default (credit risk) by a particular company (the reference entity). The buyer of a CDS, who is taking a short position in the credit event risk, makes periodic payments to the seller of the CDS until expiry of the contract or the company defaults (this is known as a credit event). In return, the buyer receives protection...
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...—‰•OG13 PDFv„rHg,SïNå€T|ûQQ:1014347461 Answer key Apply lA. Apply An Clttendee of the conference sponsored by CC would pCly , for reg istrCltion Cl nd Cl room in the conference b lock, $620 + 2($110) = $840 . By emp loy ing the ROB strCltegy , Cln Clttendee would pCly $720 + 2($70) = $860 . Therefore the Clttendee would not SClve money by emp loy ing the ROB strCltegy . The correct answer is No. lB. Apply An Clttendee of the conference sponsored by FFNA would pCly , for reg istrCltion Clnd Cl room in the conference b lock, $275 + 2($140) = $555 . By emp loy ing the ROB strCltegy , Cln Clttendee would pCly $325 + 2($70) = $465 . Therefore the Clttendee would SClve money by emp loy ing the ROB strCltegy . The correct answer is Yes. lC. App ly An Clttendee of the conference sponsored by HMHPA would pCly , for reg istrCltion Clnd Cl room in the conference b lock, $575 + 2($104) = $783 . By e mploying t he ROB strCltegy , Cl l) Clttendee would PCly $600 + 2($79) = $758 . Therefore the Clttendee would SClve money by employ ing the ROB strCltegy . The correct answer is Yes. Apply For Cl hote l to lose room revenue in th is scenClrio, the lowest rClte must be less thCln 75% of the b lock rClte . Th is will occur when the rCltio of the lowest rClte to the b lock rate is less thCln 0 .75 . 2A. Apply For the conferences hosted by the As iCl w est Center, the rCltios Clre the conference sponsored by CDA Clnd The correct answer is No . ~:...
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...certification by 2018 and retrain all of IT workforce; hence bringing major opportunities for the Cisco Learning Network. The report goes into further details by analyzing the three main reason of why this is an issue and what implicit opportunities does it present, who is effects of the main issue and what are the alternatives. Growth/expansion, competition, and future challenges and opportunity are three main point led to the goal of IoE (Internet of Eveyrthing) . Expanding the CLN (Cisco Leaning Network) and social platform, can attractive members all around the world and help develop ideas to attain IoE era. Jeanne Beliveau-Dunn,vice president and general manager for Learning@Cisco systems Inc, worked with a team of professional to implement different types of certification programs through the Learning@Cisco systems Inc. By 2013 the Cisco Learning Network was one of the largest U.S.-based company-sponsored social platforms. In order for Cisco Sytem to attain IoE, it needed to evolve the CLN (Cisco Learning Network). Beliveau-Dunn was...
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...Lab Unit 4 4-1 Task 1 CDP only shows information about directly connected Cisco devices. Task 2 Clock rate is set to 56000, interface Serial0 The no shutdown command brings up the interface. Task 3 two Serial0 and FastEthernet 0 Task 4 Switch, Fas 0/2 | Fas 0 | 148 | TS | WS-C2950-1 | BHM, Ser 0/1 | Ser 0 | 178 | R | 2621 | 4-2 Task 1 56000, Serial0 Task 2 GAD FastEthernet 0 | Administratively down | Down | Serial 0 | Administratively down | Down | Task 3 GAD(config)#interface serial 0 GAD(config-if)#no shutdown GAD(config-if)#exit GAD(config)#interface FastEthernet 0 GAD(config-if)#no shutdown GAD(config-if)#exit GAD(config)#exit Task 4 FastEthernet 0 | Up | Up | Serial 0 | Down | Down | Task 5 Sending CDP packets every 60 seconds Holdtime is 180 seconds status of the router interface Task 6 There will be no entries because the serial line is down. Task 8 Table 4-7 CDP Neighbor Detail Neighbor device ID: BHM Neighbor device capabilities: Router IP address of interface attached to your router: 192.168.15.2 Port ID of your router that the neighbor is on: Serial 0 Port ID of neighbor router that your router is on: Serial 0 IOS version of neighbor router: 12.2(12h) Task 9 00:22:50: CDP-PA: version 2 packet sent out on FastEthernet0 00:22:50: CDP-PA: version 2 packet sent out on Serial0 00:22:53: CDP-PA: Packet received from Router on interface Serial0 00:22:53: **Entry found in cache** 00:22:57: CDP-PA: Packet received...
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...Guide Work-related stress What the law says ‘Stress at work is a major issue … together we can successfully manage and prevent it.’ Health and Safety Executive (HSE) ‘Whatever your industry, size of business or location, there are things you can do for the health and well-being of your employees.’ Health, Work and Well-being ‘Work can have a positive impact on our health and well-being. Healthy and well-motivated employees can have an equally positive impact on the productivity and effectiveness of a business.’ Acas ‘Managers need to know what stress is; and also understand what skills, abilities and behaviours are necessary to manage employees in a way that minimises work-related stress.’ CIPD Acknowledgements This guide was written and conceived by John Hamilton, Head of Safety, Health and Wellbeing at Leeds Metropolitan University and a visiting lecturer in health and safety law at Salford Law School, University of Salford. info@stressguidance.org www.stressguidance.org Contents Introduction 2 In this guidance 3 Identifying a problem 4 Preventing harm 6 Protecting individuals 7 Managing the workplace 8 The Management Standards for Work-related Stress 10 Managing stress checklist 11 Further reading 12 About this guide 13 Work-related stress: What the law says 1 Introduction This guidance summarises the legal duties that employers Statutory...
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...Chelsea MIchael CLN 4U1 McCabe 09/30/2016 Jurisprudence and Legal Philosophy Essay Canada’s laws are a combination of many different philosophies about how to achieve justice. One of the most impactful philosophists are Plato because he believed that humans by nature are good which is a belief that Canada has adopted. Aristotle also believed in natural law and that everyone should have access to the same resources despite financial advantages or disadvantages similarly to Canada's beliefs. Lastly, Cicero greatly impacted Canadian law because he believed that justice comes from a reasonable person which is the basis of all Canadian laws. The three most impactful theorists on Canadian law are Plato, Aristotle and Cicero because they all believe...
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...(aviation) ball bearing market and 95% of the railroad ball bearing market. These two business segments accounted for 65% of EBC’s revenues in 2005. Long-term relationship with Russian Railroads The company has a supply contract worth USD560 mn with Russian Railroads that secures EBC average annual revenue of USD100 mn to 2010. (23.2) 19.3 Source: Company data 2004 34% 23% 15% 0.4 35.0 2005 33% 21% 12% 0.9 13.7 Ratios 2003 Gross Margin EBITDA Margin Net Margin Debt/EBITDA EBITDA/Int. Expense Financial Debt/Equity 20% 9% 5% 0.7 22.8 0.22 Solid financial standing, moderate leverage In 2005, EBC reported revenues of USD250mn, up 22% y-o-y. EBITDA margin stood at 21%, while the debt/EBITDA ratio was only 0.9. Factoring in the planned CLN issue, debt/EBITDA should not exceed 2.5 at year-end 2006, and gradually decline thereafter. 0.20 0.53 Source: Company data 2007E 2.1 5.5 1.08 2008E 1.8 5.8 2009E 1.4 6.7 Forecast ratios, conservative base case 2006E Debt/EBITDA EBITDA/Int. Expense Financial Debt/Equity 2.5 6.7 1.19 Adequate level of transparency and disclosure EBC has been preparing IFRS financials since 2004. Since its ruble bond issue in 2005, the company has complied with all necessary...
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...referring physician facility for using our company. Back in 2014, we received about 50 complaints a month, and in the year 2016 that has almost doubled. The outcome of the complaints are calls from the referring physician office threatening to move their business elsewhere, and some actual do go elsewhere. This is where our competitors come in they have the government funding to take large financial losses, their clientele roster is enormous, they provide more services than we do, and they have an orderly billing system. The can afford to lose clients, but in our situation we cannot. Google Images. (n.d.). Retrieved August 07, 2016, from https://www.google.com/imgres?imgurl=https://www.aacc.org/~/media/images/cln/articles/2013/february/independentlab.gif?h=337&w=300&la=en The Four Marketing P’s Product According to BDlab.com, our board certified physicians provide a diagnosis to the biopsy they receive. The specimen is put through many stages, it is cut into a thin sheet, it is then placed on a glass slide then died so the pathologist can accurately and effectively diagnose base on what they see in the specimen. These steps are standard for any laboratory doing pathology work. Price BDL being a small an independent lab can basically make up their own prices. Instead of billing on a facility level 2 billing system, we have a level 3 specialty facility billing system, which many hospitals also bill with. I have seen patients balances ranging from $127-...
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...2011 FRM EXAM TRAINING SYLLABUS PART I Introduction to Financial Mathematics 1. Introduction to Financial Calculus a. Variables – Discrete and Continuous b. Univariate and Multivariate Functions – Dependent variable and Independent variable c. Physical representation of a function d. Linear and Non-Linear functions e. Limits of a function f. The number e and Natural Logarithm g. Differential Calculus – Differentiation, Interpretation - Slope of a tangent, using derivatives to calculate function values and deltas. Linear functions - 1st order derivative. Non-linear functions – 1st and higher order derivatives, interpretations and usage. Rules of derivatives. h. Functions – Differentiation and Taylor Series Expansion i. Introduction to Partial Derivatives j. Introduction to Integral Calculus 2. Introduction to Bond Mathematics a. Finance and the Time Value of Money b. Concept of Zero Coupon (Discount) Bonds and Coupon Bonds. c. Bond Characteristics d. Bond Types – Fixed Rate, Floating Rate, Inverse Floater Rate, etc. e. Interest Rates – Discrete and Continuous Compounding f. Bond Pricing – using ZCYC or YTMC with discrete compounding or continuous compounding g. Difference between bond coupon rate and bond yield h. Calculating Bond Yield (YTM, CY, MMY, ZCY/Spot, Par Yield, etc.) i. Price Yield Relationship Introduction to Financial Statistics and Econometrics 1. Introduction to Financial Statistics a. Frequency distributions b. Measures of Central Tendency/Location (Mean/Mode/Median)...
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...Philips vs. Matsushita Two major competitors in the global consumer electronics industry, Philips of the Netherlands and Matsushita of Japan, both have extensive histories that can be traced back more than a century. They have each followed different strategies and have had significant capabilities and downfalls along the way. In general, Philips built its tenured success on a portfolio of responsive national organizations. On the other hand, Matsushita based its global strategy on a centralized and efficient operation through Japan. As they developed and reorganized their international strategies, each company was forced to undertake its strategic posture and restructuring as its competition position fell. During the 1990s, each company experienced specific difficulties to their market share. Both companies struggled to reestablish themselves in the global consumer electronics world. As the year 2000 came around, new CEOs at both companies came up with even more complicated initiatives and reorganizations. Philips attempts at Reorganization Below is a brief description of some of the CEOs and what they tried to accomplish as Philips strived to make a profit. The information gathered was derived from (www.slideshare.net). Gerard Philips – 1892 Philips objective was to have a one-product focus using new factories and machines for production efficiencies. The goal was to have employees focused and develop a tradition for caring. The actions taken were transferring assets...
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...The Evolving Network Model EIGRP OSPF IS-IS Optimizing Routing CCNP BSCI Quick Reference Sheets Exam 642-901 BGP IP Multicast IPv6 Introduction Brent Stewart Denise Donohue ciscopress.com [2] ABOUT THE AUTHORS CCNP BSCI Quick Reference Sheets About the Authors Brent Stewart, CCNP, CCDP, MCSE, Certified Cisco Systems Instructor, is a network administrator for CommScope. He participated in the development of BSCI, and has seperately developed training material for ICND, BSCI, BCMSN, BCRAN, and CIT. Brent lives in Hickory, NC, with his wife, Karen and children, Benjamin, Kaitlyn, Madelyn, and William. Denise Donohue, CCIE No. 9566, is a Design Engineer with AT&T. She is responsible for designing and implementing data and VoIP networks for SBC and AT&T customers. Prior to that, she was a Cisco instructor and course director for Global Knowledge. Her CCIE is in Routing and Switching. © 2007 Cisco Systems Inc. All rights reserved. This publication is protected by copyright. Please see page 73 for more details. [3] ICONS USED IN THIS BOOK CCNP BSCI Quick Reference Sheets Icons Used in This Book Si Router 7507 Router Multilayer Switch with Text Multilayer Switch Communication Server Switch I DC Internal Firewall IDS Web Browser Database App Server © 2007 Cisco Systems Inc. All rights reserved. This publication is protected by copyright. Please see page 73 for more details. [4] CHAPTER 1 CCNP...
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...The Network layer, or OSI Layer 3, provides services to exchange the individual pieces of data over the network between identified end devices. To accomplish this end-to-end transport, Layer 3 uses four basic processes: Addressing Encapsulation Routing Decapsulation Addressing= First, the Network layer must provide a mechanism for addressing these end devices. If individual pieces of data are to be directed to an end device, that device must have a unique address. In an IPv4 network, when this address is added to a device, the device is then referred to as a host. Encapsulation = Second, the Network layer must provide encapsulation. Not only must the devices be identified with an address, the individual pieces - the Network layer PDUs - must also contain these addresses. During the encapsulation process, Layer 3 receives the Layer 4 PDU and adds a Layer 3 header, or label, to create the Layer 3 PDU. When referring to the Network layer, we call this PDU a packet. When a packet is created, the header must contain, among other information, the address of the host to which it is being sent. This address is referred to as the destination address. The Layer 3 header also contains the address of the originating host. This address is called the source address. After the Network layer completes its encapsulation process, the packet is sent down to the Data Link layer to be prepared for transportation over the media. Routing = Next, the Network layer must provide services to...
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...КУРСОВА РАБОТА ЕНРОН 1. Групирайте причините за фалита на Енрон по подходящ начин 1.1. Амбицията и алчността на главните мениджъри и разширяване на дейността на компанията, която не може да си позволи от финансова гледна точка компанията се превръща в глобален топ доставчик в бизнеса с електроенергия, стомана и дървесина конгломератът купува телевизионно рекламно време и извършва застраховки срещу кредитни неустойки компанията, следвайки глобалната и виртуалната стратегия, увеличава мащабите на своята дейност и изгражда нови обекти в Индия, Китай, Индонезия, Филипините, Аржентина, Бразилия, Боливия. Тези проекти струват много средства, които компанията си набавя чрез големи заеми. Кредитите рязко увеличават пасива на баланса и намаляват рентабилността на компанията, което крие риск от срив на ценните книжа на фондовата борса 1.2. Машинациите на финансовия мениджър за да прикрие смущенията във финансите, ръководството одобрява финансовата стратегия на Фастоу за разкриване на множество фиктивни дружества партньори чрез подставени лица дружествата изкупуват придобитите на кредит инвестиционни проекти на корпорацията и ги заплащат чрез реални пари, набавени чрез заеми по същество на дружествата се прехвърлят натрупаните огромни задължения на Енрон компанията отчита в баланса си приходи от сумите, постъпили от фиктивните дружества, а не отчита допълнителното увеличаване на разходите в резултат се отбелязва невероятен ръст на пазарната капитализация...
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...[pic] Many fleet cars were bought with an option to sell them back to the manufacturer. Such vehicles were called “program cars”, as distinct from “risky cars” which were not covered by a put option. Roughly 85 % of Hertz’ domestic fleet and 74 % of its international fleet were program cars. Program cars will become more expensive in the future due to the fact that Ford and GM adopted new market strategies that deemphasized lower-margin sales of program cars Risk cars exposed the company to residual value risk. Generally less expensive than program cars. What could be the possible motivations for CD&R to buy (syndicated) Hertz? • Under exploiting of the firm’s potential due to mismanagement. Hertz managers were overconfident. The senior guys were absolutely convinced that they were running the most efficient, most productive, well-organized, well-oiled machine in the industry. • The room for increasing the operational efficiency. Value creation through cost savings. • Potential improvement of the capital structure. Lower cost of capital through extensive securitization. • Hertz was undervalued. • Unique strong brand • On airport market leadership • Good historical performance Operational Efficiency Improvements • U.S. RAC on airport operating expenses CD&R estimated that labor per transaction, administrative, and other costs had increased 41 %, 65 % and 30 %. • U.S. RAC off-airport strategy CD&R proposed to slow expansion...
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...Fraud on WSJ: A Case Study of Goldman Sachs Case The secret of great returns which are difficult to explain is a crime that has not yet been discovered because it has been carefully executed - Pere Goriot Goldman Sachs and Paulson Co. Inc.: The Players. The Goldman Sachs Group, Inc. is a global investment banking and securities firm which engages in investment banking, securities, investment management, and other financial services primarily with institutional clients. Goldman Sachs was founded in 1869 and is headquartered at 200 West Street in the Lower Manhattan area of New York City. The firm has offices in major international financial centers and provides mergers and acquisitions advice, underwriting services, asset management, and prime brokerage to its clients, which include corporations, governments and individuals. The firm also engages in proprietary trading and private equity deals and is a primary dealer in the United States Treasury security market. On September 21, 2008, Goldman Sachs and Morgan Stanley, the last two major investment banks in the United States, both confirmed that they would become traditional bank holding companies, bringing an end to the era of investment banking on Wall Street. Despite the 2007 subprime mortgage crisis, Goldman was able to profit from the collapse in subprime mortgage bonds in the summer of 2007 by short-selling subprime mortgage-backed securities. The firm initially avoided large subprime write downs, and achieved a...
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