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This chapter aims to help an Indian commercial bank to choose between Asian Offshore CNH Bond and Asian Offshore USD … Bond using the measures of basis risk, yield curve risk, credit risk, market risk capital, credit risk capital and market …
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We analyse the dependence between sovereign bonds' and banks' asset return distributions with a large panel of European data from 2001 to 2013. Using quantile regressions, we identify nonlinear contemporaneous and lagged dependence. As a result, shocks to crisis-hit sovereign bonds have...
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provide evidence that instead, the corporate bond market is central to firms' access to liquidity, crowding out bank loans … even when the crisis did not originate in the banking sector. We first show that, contrary to good times, bond issuance is … "high-yield" firms, prefer issuing bonds to borrowing from their bank. Over 40% of bond issuers leave their credit line …
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How does uncertainty affect the costs of raising finance in the bond market and via bank loans? Empirically, this paper … finds that heightened uncertainty is accompanied by an increase in corporate bond yields and a decrease in bank lending … the value of the lending relationship and lowers the lending rate. Bond investors demand compensation for the increased …
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Governance at banks, especially major banks, requires further reform, especially with respect to incentives. Supervisors are concerned that incentives may make executives prone to take “excessive” risks. Shareholders are concerned that banks rarely earn their cost of capital.What's needed is...
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Banks' balance-sheet exposure to fluctuations in interest rates strongly forecasts excess Treasury bond returns. This … bond risk premium compensates banks for bearing fluctuations in interest rates. When banks' exposure to interest rate risk …
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