Searching the Internet for a specific product can be very cumbersome and most of all time-consuming. Thousands of companies promoting their products creates a real dilemma for the Internet users. We’ve recently ran into SuperiorPromos.com, which specializes in various types of products at reasonable prices. We were looking for t-shirts with a custom inprint for [...]
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who has written 13 posts for Spoiwo.com.
NEXT STEPS: AFTER BASEL
The Basel II banking regulations will encourage willing financial institutions to focus on handling more diverse sources of risk. High-street stores try to meet more diverse risks because they recognise that just focusing on one risk (shoplifting) will lower returns at the margin on risk management efforts. Similarly, RAROC analysis shows that we gain through [...]
SCENARIOS FOR BASEL II OPRISK
The global effects that Basel II will have are not yet clear-cut. Side effects are unknown. However, a two-tier banking world is likely to emerge from the Basel II banking regulations, where there will be those who are in the fast-track for Basel compliance (more regulation and lower risk), versus those banks in the slow [...]
RISK FOR FINANCIAL INSTITUTIONS AND INSURANCE
The convergence of banking and insurance business interests has led to M&A across the industry. Banks in Europe have recognised the benefits of M&A for banks with insurance companies. Cross-selling and strengthening the capital base and skills base. The new business model was clearly aimed at selling insurance products through the bank’s network, so increasing [...]
Cost-benefits under basel
Banks and funs should already be developing more sophisticated risk analysis and more effective risk managemet. Creating risk profiles for the bank’s counter-parties in the manner of a murder investigation may sound sinister. This process operates within CRM (credit risk management) where risk probabilities, default exposures and customers’ records are logged. A detailed risk map [...]
Parachuting in the experts
The mainstream train of building investment expertise in the emerging markets rests on the twin tracks of speed and economy. Yet, predicting major market and political movements cannot be built upon expert local knowledge after two days at the airport Hilton hotel. The changes just after the army onslaught on civilians in Beijing’s Tien An [...]
The effect of interest rates and volatility
It is important to know that interest rates and volatility exert an influence on option prices. When interest rates are highel; call option prices are higher and put option prices are lower. This effect is not obvious and strains the intuition somewhat. When investors buy call options instead of the underlying, they are effectively buying [...]
The effect of cash flows on the underlying asset
Both the lower bounds on puts and calls and the put-call parity relationship must be modified to account for cash flows on the underlying asset. In earlier posts we discussed situations in which the underlying has cash flows. Stocks pay dividends, bonds pay interest, foreign currencies pay interest, and commodities have carrying costs. As we [...]