In numerous Central and Eastern European (CEE) countries, the global financial crisis as well as the unpegging of the foreign exchange rate of the Swiss franc (CHF) against the euro amplified the repayment troubles of households with the outstanding CHF-linked debt. In Croatia, the CHF loans...

This paper presents a study and a framework to assess the fair economic value of Structured Products pledged as collateral in a Lombard Loan. In particular, it discusses how the value of Barrier Reverse Convertibles in the market can be used to determine the Loan-to-Value by applying the concept...

The securitization of various financial assets provides liquidity, facilitates the transfer of risk, and presents unique risk-return opportunities to buyers of such securities. These products can also provide financing in ways that cannot be normally obtained through conventional loans. Here, we...

The aim of this paper is to develop an approach to extract information about cyber risks from structured financial products. We consider decision makers that are interested in extracting information about the uncertainty of Cyber risks. The value of information can be evaluated using recently...

This Article takes stock of post-financial crisis regulatory developments to tell a tale of two markets within a political economy of financial regulation. The financial crisis stemmed from excessive risk-taking and dodgy practices in the subprime home mortgage market, a market that owed its...

This paper examines the pricing of structured finance (SF) – asset-backed securities (ABS), mortgage-backed securities (MBS), and collateralized debt obligations (CDO) – and straight debt finance transactions. Using a cross-section of 24,525 European bonds issued by financial and...

In this paper, we establish a comparison between one of the most traded financial derivatives in the markets, the so-called catastrophe bonds (abbreviated as cat bonds) and the corporate bonds. In the first section, we start from a brief definition as well as some basic concepts. In section two,...

"Financial Markets in Practice: From Post-Crisis Intermediation to FinTechs delivers an overview of risk transformations operated by the financial industries from the perspective of quantitative finance. It gives a pedagogical and comprehensive understanding of the structure of the financial...

In today's world structured financing has become a very important and popular tool in trade, capital market and project financing. When more than one entity is involved in the financing process then it is known as structured financing. Though few projects in Bangladesh has been funded by this...

"Structured Finance is a textbook focusing on non-recourse financial techniques and asset-based lending. It explains the main structured finance techniques used today (LBO, project finance, asset finance and securitization) and how they compare. The book also outlines the reasons why these...

This paper examines the effects of underwriter networks in the market of securitized products. The complexity and opacity of securitized products increase the value of information gathered and disseminated to the market by central underwriters. However, securitized deals have long performance...

The poor performance of credit ratings of structured finance products in the financial crisis has prompted investigation into the role of credit rating agencies (CRAs) in designing and marketing these products. We analyze a two-period reputation model in which a CRA both designs and rates...

The poor performance of credit ratings of structured finance products in the financial crisis has prompted investigation into the role of credit rating agencies (CRAs) in designing and marketing these products. We analyze a two-period reputation model in which a CRA both designs and rates...

Financing is an important component in any project. Without finance, it is impossible to run any project as it is considered the lifeblood of the business. But due to the presence of predetermined rate of interest, economists have provided alternative approach for financing the project. In this...

In this research, we analyze the role of credit risk in the structured product markets, represented by Korean Equity Linked Securities (ELS). We find empirical evidences that the credit risk of the issuer is incorporated in the returns of the ELS. ELS that is issued by higher credit risk issuer...

In this paper, we examine the nature of structured products, why they are used, and by whom. We consider the size of the industry and some of its most popular products in the context of Asian capital markets. Finally, we identify a variety of risks for each of the parties involved: issuers,...

This paper proposes a policy framework for containing the unintended, and potentially harmful, effects of financial innovation. The total costs of conduct failures are often related to innovative products or services. The current approach, adopted by several authorities, makes extensive use of...

Asset-backed securities (ABSs) and covered bonds (CBs) are structured finance instruments that require a range of key services, which may be provided by many firms. However, despite the prevalence of structured finance instruments in Europe, the network between issuers and service providers has...

Asset-backed securities (ABSs) and covered bonds (CBs) are structured finance instruments that require a range of key services, which may be provided by many firms. However, despite the prevalence of structured finance instruments in Europe, the network between issuers and service providers has...

We study complexity in the market for securitized products, a market at the heart of the financial crisis of 2007-2009. The complexity of these products rose substantially in the years preceding the financial crisis. We find that securities in more complex deals default more and have lower...

Introduction to the Economics of Securitazation -- Overview of Securitization and Securitized Products -- Overview of Loan Portfolio Analysis -- Incentives and the Economics of Securitization -- Problems with Securitization -- Structuring Securitized Bonds -- The Economics of Securitization...

"Alternative Investments: CAIA Level I, 4th Edition is the curriculum book for the Chartered Alternative Investment Analyst (CAIA) Level I professional examination. Covering the fundamentals of the alternative investment space, this book helps you build a foundation in alternative investment...

Special investment vehicles (SIVs), extremely popular financial structures for the creation of highly-rated tranched securities, experienced spectacular demise in the 2007-2008 financial crisis. These financial vehicles epitomize the shadow banking sector, characterized by high leverage,...