Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
(a) iTraxx is a group of credit derivative index managed by the International Index Company (IIC) and covering Europe and Asia and Australia. The body in the portfolio forming the indices are selected on the basis of trading volume and liquidity of the underlying CDS. For instance the iTraxx Europe index comprises of 125 investment grade names.
(b) The standard tranche for a credit index is a tranche with pre-specified lower as well as upper attachment point making it much more liquid than tranches created individually by negotiating with market makers. The subsequent are the standard attachment points representative the percentage of defaults protected by the seller of the tranche:
Equity tranche: first 0 - 3%
Mezzanine tranche: 3 - 6%
Senior tranche: 6 - 9%
Super senior tranche: 9 - 12%
(c) We can mention the subsequent few differences
• Standardized tranches of credit indices are unfunded and hence no cash payment is involved whereas tranches of CDO's issued in the market by banks or else hedge funds may be funded and requires cash payment.
• For the standardized tranches the fraction of default that it protects is previously determined on the other hand tranches of CDO's issued in the marketplace depends on the issuer (bank or hedge fund).
• The underlying portfolios are probable to be different.
• The standard tranches are additional liquid than tranches issued by banks and hedge funds.
Question: You have been appointed as the head of the treasury of Platza International, an automobile firm with many subsidiaries abroad. The management of Platza International
All other things held constant, how would the market price of a bond be affected if coupon interest payments were made semiannually instead of annually? The majority of bonds i
If dividends paid to common stockholders are not legal obligations of a corporation, is the cost of equity zero? Explain your answer. Even though common stockholders don't have
Analytical procedures of auditors Auditors must apply analytical procedures at the planning and overall review stage of audit. Analytical procedures include the considerati
Corporate Governance features Corporate compliance: The BOD should make sure that corporation obeys with all related laws, governance practices, regulations, accounting an
As we know, zero-coupon bonds are issued without any periodic coupon payments. The investor gets the interest and the principal on a maturity date. The interest i
Hedge funds are short two types of funding options. Describe in detail what these options are. Describe why these options become more valuable during a financial crisis. During
What is an annuity? An annuity is a series of equivalent cash flows, spaced consistently over time.
Treasury Inflation-Protected Securities (TIPS) are the inflation-indexed bonds, the US Treasury offers. The first offer was made in the year 1997. As the name sug
The issuers of ALBS are the financial subsidiaries of automobile manufacturers, commercial banks and other independent finance companies and small financial insti
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd