Introduction Over the recent international financial market has become very popular because it simplifies the trade between countries. People can enter to sell or to buy financial assets since borrowers and lenders can enter to the commitment of financing each other through this market. This market is segmented into money market and capital market, money market is associate with buying and selling of assets in a short term period which occurs not more than one year. Example of money market products
CREDIT DERIVATIVE What it means: A credit derivative is a financial instrument which results in a trade between two parties. One of them is the protection buyer which makes periodic payments to another party, the protection seller. In this trade the protection seller indemnifies the protection buyer against any losses he experiences as a consequence of the default of some credit-risky reference asset. Credit derivative is one of the various instruments and techniques which are designed to separate
well-structured financial system, which helps in the formation of a capital. Financial System is a set of institutional arrangements through which financial surpluses in the economy are mobilised from surplus units and transferred to deficit spenders. The institutional arrangements include all conditions and mechanisms governing the production, distribution, exchange and holding of financial assets or instruments of all kinds and the organisations as well as the manner of operations of financial markets
On the other hand risks that cannot be hedged are those risks associated with an asset or an obligation that cannot be effectively neutralized by buying or selling a market instrument; risks such as long term liabilities. Studies show that airline have hedge Jet fuel risks up about 70% of their jet fuel consumption. (Ref). The extent to which an airline will hedge it fuel purchases depends on how
Religare Enterprises Limited (REL) is the holding company for one of India’s leading diversified financial services groups. REL offers different types of financial services through its underlying subsidiaries and operating entities, including loans to SMEs, Capital Markets, and Wealth Management, Life and Health insurance and Asset Management. REL is listed on the Bombay Stock Exchange (BSE) and National Stock Exchange The group has a presence across around 1,700 locations in India and also
Stooksbury saw the pressing need to institute an enterprise risk management program in the company and has asked the firm’s financial analyst to prepare a report to brief the firm’s executives on this topic. In this case study, the concepts of enterprise risk management, the various components of an ERM framework, the reasons risk manage might increase the corporation’s value, the description of risk events, and how companies can reduce these risks are discussed. Also, the case study contains illustr4ations
8.6 Notes to the Financial Statements: Theses financial statements are the consolidated financial statements of First Bank Nigeria Limited and its subsidiaries, hereafter referred to as the Group. The principal activities of the Bank are mainly retail banking and corporate banking. Retail banking provides banking activities relating to individuals, such as savings accounts, investment savings products, loans and money transfers. Corporate banking includes activities relating to multinational and
different types of cross-border interaction (2014). According to BEA’s research, the international transactions accounts (ITAs) record transactions between U.S and foreign residents over a period of time. The transactions are grouped broadly into (1) transactions related to the production of assets (such as goods and services), the generation of income (such as income earned from holdings of financial and real assets), and transfers (such as gifts), and into (2) transactions in financial assets and
Introduction Credit Suisse is a leading global financial services company. It provides businesses, institutional and high-net-worth private clients worldwide with advisory services, comprehensive solutions, and excellent products. The two global divisions: Private Banking & Wealth Management and Investment Banking carry out the integrated functions. Credit Suisse is active in Wealth Management, Investment Banking and Asset Management in India, serving high-net-worth individuals, corporate and institutional
INTRODUCTION 1.1 Background Growth is essential for a healthy sustenance and survival of any firm in this competitive world. There are two growth routes available to any company: - organic and inorganic. The Theory of the Firm’s Growth Penrose states that the growth rate of the firm will decline with its age. Organic growth beyond certain size or age is a big challenge and hence inorganic growth gains significance. Inorganic growth means growing through mergers and acquisitions. The inorganic growth