Market Efficiency
Insurance Business Model
Why insurance is not profitable in the direct sense and the source of profit is an investment activity? There is such a term – Combined Ratio – which […]
Archive
Category: Financial Markets and Institutions – by A. Saunders, M. Cornett & O. Erhemjamts
Market Efficiency
Market Timing
Market Timing as a long-term investing opposition strategy, but there was a time when mutual fund managers were making not bed money. The point is that sometimes the […]
Interest Rates
Financial Risks
List of risks from the book – Financial Markets and Institutions – By Anthony Saunders, Marcia Cornett and Otgo Erhemjamts: Here’s the corrected list of risks from the […]
Market Efficiency
Expected Default Frequency Model
Unlike us, financial institutions in developed countries use the KMV method of credit monitoring to determine the Expected Default Frequency (EDF). Since Merton, Black, and Scholes made revolutionary […]
Interest Rates
Default Risk
Do You Consider Default Risk When Purchasing Bonds on the Georgian Market? If So, How Specifically? There is an interesting metric called RORAC (Return on Risk Adjusted Capital), […]
Risk
Liquidity Risk
Liquidity risk refers to the risk that an organization will not have enough liquid assets to meet its short-term obligations. This is a critical issue for any business, […]
Interest Rates
Interest Rate Factors
Factors Determining the Interest Rate on a Loan/Bond: i (j) = f (IP, RIR, DRPj, LRPj, SCPj, MPj) Where, Source: Financial Markets and Institutions – by A. Saunders, […]