| Papers [1-14] of 100 :: [Page 1 of 8] | | Go to page : 1 2 3 4 5 6 7 8 —> | Search results on "INTEREST RATE RISK": |
|
|
Modeling Interest Rate Risk Management, 2008.
Presents a complete research project, which presents a new tool to manage the global interest rate risk using the case of Credit Foncier de Monaco.
11,815 words (approx. 47.3 pages), 79 sources, APA, £ 162.95
»
Click here to show/hide summary
Abstract
This paper explains that the goal of its thesis is to conceive a model to manage the global interest rate risk of the commercial portfolio in order to determine the optimal structure of the new production and to test the tool on the Credit Foncier de Monaco, private banking and subsidiary of Calyon, which is obviously the investment banking of Credit Agricole. The paper's thesis is divided into two main sections: the theoretical modeling and the empirical application.
Table of Contents:
Abstract
Abbreviations
Introduction
Theoretical Modeling
Identification
Interest Rate
Nominal vs. Real Rate
Fixed vs. Variable Interest Rate
Short-Term vs Long-Term Rates
Spot vs. Forward Rates
Term Structure of Interests
Theories
Methods
Deterministic and Stochastic Models
Sources of Interest Rate Risk
Repricing or Maturity Mismatch Risk
Basis or Bid-Ask Spread Risk
Yield Curve Risk
Options Risk
Interest Rate Exposure
Net and Gross Positions
Balance-Sheet & Gap
Profit and Loss Statement and Spread
Factors
Measurement
Volume
Instantaneous Gaps
Generalized Gaps
Indexed Gaps
Simulated Gaps
Value
Duration
Convexity
Market
Margin
Sensitivity
Modified Duration and Relative Convexity
Money Markets Rates
Management
Hedging And Speculation
Micro or Macro Hedging
Systematic or Selective Hedging
Partial and Total Speculation
Hedging Risk and Opportunity Cost
Passive and Active Hedging
Passive Hedging or Beta Management
Active Hedging or Alpha Management
Instruments
Spot
Forward And Future
Fra And Swaps
Options
Modeling
Utility
Structure
Utility Function
Constraints
Regulation
Commercial
Model
Objective Function
Efficient Portfolio
Optimal Portfolio
Empirical Application
Presentation
Cfm
Treasury
Asset-Liability Management (Alm) Committee
Adaptation
Structure
Constraints
Rates
Simulation
Leverage
Regulatory Constraints
Variance-Covariance Matrix
Utility
Variances
Conclusion
Glossary
Appendix: Balance-Sheet + Profit & Loss Statement
Appendix: Balance-Sheets by Currency, Maturity and Interest Rate
Appendix: Gaps
Appendix: Correlation and Variance-Covariance Matrix
Appendix: Weightings and Balance-Sheets in March 2008
Appendix: Coefficients of Variation
Appendix: Objective Function for Different Aversions to Risk
From the Paper
"Taking into account the stock and constraints, the model determines the optimal allocation of the production for different scenarios of rates level, rates volatility and risk aversion degrees. The bank hedges against the interest rate risk by optimally adjusting its production.
"The optimal portfolio is the tangent point between the efficient frontier and the indifferent curve. It is obtained by equalizing the marginal rate of transformation (MRT) to the risk to return, which is the slope of the efficient frontier, and the marginal rate of substitution (MRS) to the risk to return, which is the slope of the objective function."
| |
|
Interest Rate Risk Management, 2008.
An analysis of interest rate risk management as a tool for understanding how organizations approach risk management.
1,324 words (approx. 5.3 pages), 1 source, APA, £ 31.95
»
Click here to show/hide summary
Abstract
This paper provides an overview and analysis of interest rate risk (IRR)management using the Federal Reserve Bank of San Francisco's (2004) Economic Letter. It looks at IRR management as a tool for understanding how organizations approach risk management and why risk management and interest rate is so important to a financial institution's ability to conduct business. The paper also reviews the impact of global policies and regulatory procedures on interest risk management and ascertains whether such measures are possible and whether such measures would prove beneficial for banks and other financial institutions throughout the world.
Table of Contents:
Introduction
Interest Rate Risk
Mitigating Interest Rate Risk
Universal Guidelines for Risk Management
Efficacy and Analysis
Conclusions
From the Paper
"While there is no way to control economic upswings or downturns in many cases, banks can do much to help protect their assets and limit interest rate risk through proper management. This can be accomplished through global and regional guidelines, and even guidelines established within specific banking institutions. Oversight by a board of directors and senior management team, combined with the approval of the public, may result in greater efficiency and better universal management of risk. Most banks have the resources to adopt a policy such as this with minimal investment of time. In the interests of reducing interest rate risk, most banks should at the very least attempt the policies and procedures offered in this analysis, and assess what if any positive changes result."
| |
|
Interest Rate Risk Management, 2005.
A look at how insurance companies need to take the risk factor of volatile interest rates into account.
1,151 words (approx. 4.6 pages), 3 sources, MLA, £ 27.95
»
Click here to show/hide summary
Abstract
This report discusses the volatility of interest rates and how that issue is important for insurance companies, especially those underwriting premature death risks and selling annuities. The report also presents insights into why interest rates are important for other financial institutions such as banks and corporations who hold interest related securities throughout their accounting processes. Finally, the essay offers a status of the interest rate risk management processes utilized by different corporations and the types of risk management throughout the market.
From the Paper
"Banking is a business that deals with money and other instruments of credit. By money and instruments of credit we mean that although anything can function as money such as dollars, pennies, checks, sea shells and even rocks, it is the process of buying and selling. The idea of money presents an ideal solution for piano salesmen who no longer have to carry around their product for barter. Banks became middlemen in sales transactions in our modern way of thinking to replace the barter systems of old. The real genius in the idea of banks is the concept of interest. Banks created a new way to profit from their middle man status and these concepts arte the foundation of the credit process where banks and other institutions extend loans for longer periods of time in exchange for a payment in the form of interest. There are well over 25,000 banks and near-banks in the United States alone. "
| |
|
Interest Rate Risk, 2004.
Examines the negative aspects of interest rate shifts for banking institutions.
1,231 words (approx. 4.9 pages), 3 sources, MLA, £ 29.95
»
Click here to show/hide summary
Abstract
Interest rate risk is included in the larger category of market risk, to which a bank, like any financial institution, is subject. A move in any such risk can result in profit or loss for the bank, however; this paper deals with the loss aspects correlated with risk. The paper discusses concepts such as Value-at-Risk, structural interest rate risk, and the GAP technique.
From the Paper
"A technique of managing interest rate risk that has been used for some time now is the GAP technique or the GAP model. This derives its name from the difference (gap) between the asset value and liabilities value that is at the center of this model. Thus, the GAP model takes into consideration the assets sensitive to interest rate risk and the liabilities sensitive to interest rate risk and calculates the difference between the two. The bank must supply the length of time over which the analysis is to be done (usually one year), a certain interest rate forecast for the period of time over which the analysis is done and a decision whether to preserve the current net interest income or attempt to improve it."
| |
|
Macroeconomics of Interest Rates, 2008.
This paper examines the issue of interest rates as it relates to the economy.
1,856 words (approx. 7.4 pages), 5 sources, MLA, £ 41.95
»
Click here to show/hide summary
Abstract
This paper discusses the recent economic reports and events with respect to interest rates and interest rate movements. The current state of the US economy is examined as well as the Federal Reserve handling of monetary and fiscal policy relative to the economy. Of particular importance is the Federal Reserve's strategic shift in policy from accommodative to appropriate. The writer concludes that it can be seen that interest rates are much more than one of many economic devices that the Fed has to influence the economy but is actually one of theprimary methods in which the Fed interacts and influences the direction of economic growth and expansion.
Outline:
Abstract
Introduction & Thesis
Overview of Interest Rates
Types of Interest Rates
Impact of Change in Interest Rates
Conclusion
From the Paper
"Risk structure as it relates to interest rates is essentially the relationship between the interest rates on bonds that have the same term to maturity features. This leads to an active consideration of the default risk which is the chance that a given issuer of a bond may default by not being able to make the interest payments on the bonds at completion of the term or may not be able to meet the face value payment of the bond either. This creates the default risk model which implies that as the risk associated to a bond family increase then interest rates must also increase in order to compensate for the risk premium being incurred. Thus, since corporate bonds are more prone to market failure they typically bear a higher interest rate than government bonds, for example."
| |
|
Interest Rates, 2005.
This paper discusses the Fed's measured and deliberate increase of interest rates over recent months up to current rates.
1,813 words (approx. 7.3 pages), 7 sources, MLA, £ 41.95
»
Click here to show/hide summary
Abstract
The paper discusses what interest rates are, who controls interest rates, how interest rates affect an economy, the conundrum of why 30-year interest rates have not increased in spite of all contrary experience, and a conclusion concerning whether interest rates should be increased at a measured or quick pace.
From the Paper
"I wonder if when Nostradamus was predicting the end of the world and saw the world awash in flames, what he really saw was the world awash in debt. Presently, because interest rates in the United States are so low, Americans and American businesses have taken out loans at an increased rate to keep pace with their high demand of goods and services. The Bush administration's tax cuts have added fuel to this spending trend also. The purpose for these two actions was to jump start the United States economy; Policies that have been successful. The real GDP has continued to grow at a good pace and the fourth quarter of 2004 growth of 3.1 percent annual rate is an indication of this growth . But what are the consequences of this growth come?"
| |
|
American Interest Rates, 2002.
Analysis of interest rates and its impact on the economy in context of the present U.S economic situation.
3,102 words (approx. 12.4 pages), 7 sources, MLA, £ 63.95
»
Click here to show/hide summary
Abstract
yThis paper discusses indepth the state of the economy in context of the rise and then consistent drop in interest rates over the last 5 years. It discusses what the impact is such rate cuts is on all aspects of the economy and also highlights the various kinds of interest rates.
Table of Contents
Introduction
Overview of Interest Rates and their Significance as a Macroeconomic Tool
Types of Interest Rates
Impact of Change in Interest Rates on the Current Economy
Conclusion
References
From the Paper
"The Federal Reserve like other Central Banks seeks to maintain a financial environment within which competitive markets support the efficient use of productive resources. The overarching principle is that central bank should provide the necessary monetary and fiscal stability in a way that leaves the maximum freedom of action to private markets. In keeping with this principle, monetary policy is implemented by indirect means, with an interest rate policy instrument than with direct credit controls. Thus interest rates are part of the Federal Reserve?s key macroeconomic tools that it has at its disposal to control the markets? and inadvertently the entire economies money supply. The quantity of money within an economy can determine various exogenous and endogenous factors that can keep the markets and the economy in close range of the equilibrium position. This is important in-order to prevent the extensive number of boom and bust cycles the American economy has faced in the early part of the last century."
| |
|
Interest Rates, 2006.
An explanation of interest rates and how they affect the economy's performance.
2,116 words (approx. 8.5 pages), 10 sources, MLA, £ 46.95
»
Click here to show/hide summary
Abstract
This paper presents an overview of how interest rates function, how the Federal Reserve manipulates interest rates as a means of exerting control of the economy and what factors affect interest rates. The paper also discusses Federal Reserve policy regarding interest rates in recent years and concludes that falling interest rates are good for both the economy and the individual.
From the Paper
"In recent months, we have heard a great deal about the importance of interest rates in manipulating our sagging economy. We know that interest rates affect what we pay on our mortgages, credit cards and educational loans. It also impacts how much money we make on the money we deposit with a bank. We have also learned about the effect of interest rates in the stock market: higher interest rates discourage businesses from borrowing money, expanding and hiring new workers, which causes their stock to either stagnate or fall in value. Interest rates have been lowered by the Federal Reserve eleven times in the past year to a four-decade low of 1.75% in an effort to salvage our hurting economy."
| |
|
Interest Rates, 2002.
Examines the history of interest rates and credit.
1,148 words (approx. 4.6 pages), 5 sources, APA, £ 27.95
»
Click here to show/hide summary
Abstract
Sidney Homer, in his 1963 seminal history of interest rates, argues that a history of often dramatic interest rate fluctuations provides an excellent summary of the success of some communities and the failures of others to develop effective commercial ethics and laws and suitable monetary and fiscal techniques and policies. While "credit" is considered a modern device (or vice), a brief survey of financial history in this paper demonstrates that credit was in general use in ancient and in medieval times, antedating industry, banking and even coinage. This paper examines selected issues related to the history of simple and compound interest rates, specifically loans and considers periods when high rates were commonplace in their historical context.
From the Paper
"In this context, Gwartney and Stroup (1990) note that in Keynesian economic theory, the interest rate is linked to the supply of and demand for money. High interest rates have historically induced people to hold less money (i.e., to invest more), while low rates have the opposite effect. During normal times, the demand curve for money is like the demand curve for other goods; when the price (the interest rate) of holding money rises, the quantity of money demanded will decline. The Federal Reserve System, the U.S. monetary authority, often finds it necessary to intervene to "adjust" the interest rate to further "adjust" the monetary supply and demand curves and related activity."
| |
|
Interest Rates, 2002.
An examination of several issues related to the history of simple and compound interest rates.
900 words (approx. 3.6 pages), 5 sources, £ 22.95
»
Click here to show/hide summary
Abstract
Examines several issues related to the history of simple & compound interest rates. Centers on loans, credit. Defines terms. Overview of history of interest rates; fluctations; government economic policy decisions; supply & demand for money. Summary of averages of prime short-term rates (19th & 20th Centuries). Suggests that interest rates are tied to non-economic as well as economic factors.
From the Paper
"Introduction
Sidney Homer (1963), in his seminal history of interest rates, argues that such a history of often dramatic interest rate fluctuations provides an excellent summary of the success of some communities and the failures of others to develop effective commercial ethics and laws and suitable monetary and fiscal techniques and policies. While "credit" is considered a modern device (or vice), a brief survey of financial history will demonstrate that credit was in general use in ancient and in medieval times, antedating industry, banking and even coinage. It is the purpose of this brief report to examine selected issues related to the history of simple and compound interest rates, specifically on loans, and to consider periods when high rates were commonplace in their historical context."
| |
|
Interest Rates and the Consumer, 2001.
This paper examines how the shifting of interest rates affects consumers in the United States.
2,225 words (approx. 8.9 pages), 5 sources, APA, £ 49.95
»
Click here to show/hide summary
Abstract
This paper examines how interest rates in the financial community affect the consumer and the stockholder. Investment strategies are also briefly investigated, with an emphasis on how interest rates indicate the performance of stocks in a long- term investment plan. It is hoped that through providing enough information on how interest rates affect the consumer, the reader will be better equipped to make informed discussions on the subject.
From the Paper
"Interest rates are essentially the rate of change in the economic community that expresses how the financial institutions are performing. They also act as incentives for the consumer, where if the interest rates are higher the customer is more likely to invest their funds. Interest rates are not stagnant, and change to reflect the current state of the market. As the consumer benefits more when he or she invests at a time where the rates are higher, the consumer is more likely to invest at that particular time."
| |
|
Interest Rate Cuts, 2002.
A discussion on whether the Federal Reserve should lower their interest rates.
1,900 words (approx. 7.6 pages), 8 sources, £ 50.95
»
Click here to show/hide summary
Abstract
This paper will probe into the issues that surround further interest rate cuts and offer a reasoned opinion on the dynamics and wisdom of such a move. In the final analysis it seems that no further rate cuts are necessary at this point. However, it must be noted that this is an ephemeral observation, for, in the coming months further cuts or increases may well be appropriate. So unpredictable is the contemporary state of the global economy. In support of this position, contrasts between maintaining interest rates, vs. increasing or further decreasing them, will be provided.
| |
|
Interest Rates And Business Cycles, 2002.
Examines the role of interest rates within business cycles.
2,025 words (approx. 8.1 pages), 13 sources, £ 50.95
»
Click here to show/hide summary
Abstract
Examines the role of interest rates within business cycles. Centers on U.S. business environment. History of business cycles; lack of uniformity. Use of business cycles & practice of economic forecasting. Usefulnes of business cycles to companies. Analyzing economic measures & indicators. Fluctation of interest rates. Federal Funds Rate. 2 Charts.
From the Paper
"Introduction
Business cycles have long been an area of interest because of the criticality of economic trends for the social and political welfare of the country. Numerous public and private organizations are devoted to the production of regular economic forecasts, and heavily funded research projects seek more accurate and reliable models on which to base these forecasts. While much attention is focused on the area of economic forecasting, and numerous computerized models have been developed to predict economic performance, there is also considerable interest in the role of interest rates within the business cycle. This research examines the business cycle and the role of interest rates within cycles.
Background
Until the 1970s, it ..."
| |
|
The Effects of Low Interest Rates on Housing Markets, 2002.
A paper which discusses how lowered interest rates are affecting the housing industry in the United States.
2,422 words (approx. 9.7 pages), 4 sources, MLA, £ 52.95
»
Click here to show/hide summary
Abstract
The paper shows that bank interest rates have been steadily decreasing since the September 11th attack on America and that the attack caused the business failures of major corporations, such as World Com and Enron. It discusses that one of the areas that are going stronger then ever is the real estate industry and many homeowners are taking the option to refinance their homes. The paper shows that banks and financial institutions are not in favor of this procedure as a homeowner who refinances his house may lower his monthly payments several hundred dollars - banks are making significantly less money on the lowered monthly payments through refinances. The purpose of the essay is to discuss how the lowered interest rates are affecting the housing industry.
From the Paper
"House sales are running a record high this year, according to Reaser, chief economist of Bank of America. The refinancing of mortgages is supporting a major portion of the economy that is surviving and thriving. At the present time, refinancing is showing no signs of slowing down; in fact it is steadily increasing. People are putting the extra money into home improvements and buying new cars, another low interest financing option."
|
|
|
