Search results “Credit risk for investment”
Bond Investing 101: Understanding Interest Rate Risk and Credit Risk
This video is one part of BondSavvy's 10-part video "The Crash Course on Corporate Bond Investing." The full Crash Course video is included with a subscription to BondSavvy https://www.bondsavvy.com/corporate-bond-investment-picks or can be bought on its own here https://www.bondsavvy.com/a-la-carte/corporate-bond-investing-101. This video explains the differences between interest rate risk and credit risk and how you can factor this into your next corporate bond investment. Many investors only invest in investment-grade bonds because they are afraid of the default risk of high-yield (or below investment grade) bonds. The challenge with this thinking is that investment-grade bonds often have longer durations (or time until maturity) and are therefore more sensitive to changes in interest rates. To alleviate these risks, it's important for investors to consider both investment-grade and non-investment-grade corporate bonds. You will learn the following by watching this video: * Difference between investment-grade corporate bonds and high-yield corporate bonds * Difference in default rates between investment-grade corporate bonds and high-yield corporate bonds * How bond prices are quoted * How owning high-yield corporate bonds can help reduce investors' interest rate risk * Why shorter-dated bonds are less sensitive to changes in interest rates * What happens to bond prices when interest rates increase?
Views: 472 BondSavvy
What should you consider for debt investments, NCD or Credit Risk Funds?
Views: 1890 CNBC Awaaz
Credit Risk Introduction
hese videos go through the syllabus objectives for the Financial Exams of ST5/F105/SA5/F205. They are raw, unedited and contain a large amount of opinion. I've taken a skeptical approach to the subject and my views may not be correct. Feel free to correct me in the comment section below. I'll be releasing a new video every day ----------------------------- Let's Keep in Contact ----------------------------- Hit the subscribe button if you would like to see more on Youtube. Join our Actuarial Science Community on Facebook - https://bit.ly/2AyCN1p MJ’s Udemy courses - https://bit.ly/2AyCUtR MJ's awesome website - https://www.mjactuary.com -----------------------------
Views: 32378 MJ the Fellow Actuary
Associate in Credit Risk: Monitoring Risk | What We Do | J.P. Morgan
As an associate in the Corporate & Investment Bank, Sonal helps monitor credit risk for clients. SUBSCRIBE: http://jpm.com/x/i/NFPWfK0 About J.P. Morgan: J.P. Morgan is a leader in financial services, offering solutions to clients in more than 100 countries with one of the most comprehensive global product platforms available. We have been helping our clients to do business and manage their wealth for more than 200 years. Our business has been built upon our core principle of putting our clients' interests first. Connect with J.P. Morgan Online: Visit the J.P. Morgan Website: https://www.jpmorgan.com/ Follow @jpmorgan on Twitter: https://twitter.com/jpmorgan Visit our J.P. Morgan Facebook page: http://facebook.com/jpmorgan Follow J.P. Morgan on LinkedIn: https://linkedin.com/company/j-p-morgan/ Follow @jpmorgan on Instagram: https://instagram.com/jpmorgan/ #jpmorgan #jpmorgancareers [OPTIMIZED TITLE]
Views: 1881 jpmorgan
Basel III in 10 minutes
This video explains Basel III capital requirement Vs Basel II For more information about Basel III please visit our full course https://www.udemy.com/credit-risk-management/#/
Views: 181835 Finance Club
What is financial risk? FRM Foundations (T1-01)
Financial risk includes market risk, credit risk, operational risk, liquidity risk, and investment risk. If you have questions, visit our forum (with 50,000+ members) at https://trtl.bz/2ywkLLE Subscribe for future tutorials on expert finance and data science https://www.youtube.com/c/bionicturtle?sub-confirmation=1 Our email contact is [email protected] (I can also be reached at [email protected]) For other videos in our Financial Risk Manager (FRM) series, see one of the following playlists: Texas Instruments BA II+ Calculator https://www.youtube.com/playlist?list=PLCBifSfCnx3sjobyTnEyv2N4baxF8-wiS Risk Foundations (FRM Topic 1) https://www.youtube.com/playlist?list=PLCBifSfCnx3sm2OmHA1BO41Zcc4ntUwMG Quantitative Analysis (FRM Topic 2) https://www.youtube.com/playlist?list=PLCBifSfCnx3sormazeHQr5G9etDITYStF Financial Markets and Products: Intro to Derivatives (FRM Topic 3, Hull Ch 1-7) https://www.youtube.com/playlist?list=PLCBifSfCnx3tQuvaS-lG-8ZqUh7NvxRDg Financial Markets and Products: Option Trading Strategies (FRM Topic 3, Hull Ch 10-12) https://www.youtube.com/playlist?list=PLCBifSfCnx3s7iycLx2eZQeIUPo_4a8n8 FM&P: Intro to Derivatives: Exotic options (FRM Topic 3) https://www.youtube.com/playlist?list=PLCBifSfCnx3sfoUGYayuqJRhHA5jCFkGr Valuation and RIsk Models (FRM Topic 4) https://www.youtube.com/playlist?list=PLCBifSfCnx3sqbQnW4HkZ3HoScTG0Lluz #bionicturtle #risk #financialriskmanager #FRM #finance #expertfinance
Views: 15467 Bionic Turtle
Types of risks in banking | Risk Management in Banking sector | Types of risks in banking sector
In this video we have discussed Types of risks in banking sector and Risk Management in Banking sector which is very important for IBPS PO,IBPS Clerk,SBI Clerk,SBI PO,Syndicate Bank PO,Canara Bank PO and various other banking examinations. In this video we have categorically described risks in banking sector such as credit risk, market risk, operational risk etc. The major risks in banking business or ‘banking risks’, explained in this video with proper time stamp are : 1. Credit or Default Risk 03:50 2. Market Risk 11:50 3. Operational Risk 15:04 4. Liquidity Risk 18:37 5. Business Risk 20:23 6. Reputational Risk 21:51 7. Systemic Risk 23:41 8. Moral Hazard 24:51 9. Final discussion 27:02
Views: 63895 BANKING SUTRA
Credit spreads - MoneyWeek Investment Tutorials
Like this MoneyWeek Video? Want to find out more on credit spreads? Go to: http://www.moneyweekvideos.com/credit-spreads/ now and you'll get free bonus material on this topic, plus a whole host of other videos. Search our whole archive of useful MoneyWeek Videos, including: · The six numbers every investor should know... http://www.moneyweekvideos.com/six-numbers-every-investor-should-know/ · What is GDP? http://www.moneyweekvideos.com/what-is-gdp/ · Why does Starbucks pay so little tax? http://www.moneyweekvideos.com/why-does-starbucks-pay-so-little-tax/ · How capital gains tax works... http://www.moneyweekvideos.com/how-capital-gains-tax-works/ · What is money laundering? http://www.moneyweekvideos.com/what-is-money-laundering/
Views: 22282 MoneyWeek
What is CREDIT RISK? What does CREDIT RISK mean? CREDIT RISK meaning, definition & explanation
✪✪✪✪✪ WORK FROM HOME! Looking for WORKERS for simple Internet data entry JOBS. $15-20 per hour. SIGN UP here - http://jobs.theaudiopedia.com ✪✪✪✪✪ ✪✪✪✪✪ The Audiopedia Android application, INSTALL NOW - https://play.google.com/store/apps/details?id=com.wTheAudiopedia_8069473 ✪✪✪✪✪ What is CREDIT RISK? What does CREDIT RISK mean? CREDIT RISK meaning - CREDIT RISK definition - CREDIT RISK explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. A credit risk is the risk of default on a debt that may arise from a borrower failing to make required payments. In the first resort, the risk is that of the lender and includes lost principal and interest, disruption to cash flows, and increased collection costs. The loss may be complete or partial. In an efficient market, higher levels of credit risk will be associated with higher borrowing costs. Because of this, measures of borrowing costs such as yield spreads can be used to infer credit risk levels based on assessments by market participants. Losses can arise in a number of circumstances, for example: - A consumer may fail to make a payment due on a mortgage loan, credit card, line of credit, or other loan. - A company is unable to repay asset-secured fixed or floating charge debt. - A business or consumer does not pay a trade invoice when due. - A business does not pay an employee's earned wages when due. - A business or government bond issuer does not make a payment on a coupon or principal payment when due. - An insolvent insurance company does not pay a policy obligation. - An insolvent bank won't return funds to a depositor. - A government grants bankruptcy protection to an insolvent consumer or business. To reduce the lender's credit risk, the lender may perform a credit check on the prospective borrower, may require the borrower to take out appropriate insurance, such as mortgage insurance, or seek security over some assets of the borrower or a guarantee from a third party. The lender can also take out insurance against the risk or on-sell the debt to another company. In general, the higher the risk, the higher will be the interest rate that the debtor will be asked to pay on the debt. Credit risk mainly arises when borrowers unable to pay due willingly or unwilingly.
Views: 9635 The Audiopedia
Credit Risk
Training on Credit Risk for ST 5 Finance and Investment for actuary exam by Vamsidhar Ambatipudi.
Views: 1771 Vamsidhar Ambatipudi
Credit Suisse Risk Management: a day in my life in Singapore
Credit Suisse employees share insights into what it's like to work for a global bank. Daniel, a VP in Risk Management, takes us through his day at the office in Singapore. For more information about current open positions and about working with us visit: https://www.credit-suisse.com/careers You can also follow us on: Facebook - https://www.facebook.com/creditsuissecareers LinkedIn - https://www.linkedin.com/company/credit-suisse
Views: 4733 Credit Suisse
Finance @Tableau | Managing risk for our global corporate treasury
Tableau's global corporate treasury team is the central bank of the company and is responsible for managing all aspects of banking services, cash and liquidity management, payment operations, foreign exchange risk, investments, ecommerce and corporate credit cards. This session will demonstrate how we use Tableau to manage a growing and complex global treasury.
Views: 579 Tableau Software
Counterparty risk
Europe is teetering on the edge of a credit crisis, and markets all around the world are tumbling as investors worry about contagion. Its all about banks not trusting each other, as Paddy Hirsch explains. Subscribe to our channel! https://youtube.com/user/marketplacevideos
Views: 42364 Marketplace APM
Day in the Life of a Credit Analyst | PIMCO
Christian Stracke, Global Head of Credit Research, offers an inside look at PIMCO’s intensive credit research process and how it led the firm to invest in pipeline companies as oil reached its 2016 low. For more information, visit http://pimco.com Follow us for insights on economies, markets and investing: Twitter: https://twitter.com/pimco LinkedIn: http://www.linkedin.com/company/pimco Facebook: http://www.facebook.com/pimco Blog: http://blog.pimco.com Terms and conditions: pimco.com/socialmedia
Views: 75685 PIMCO
Jordan Peterson On Money, Risk Taking, and Finance
We visited Jordan Peterson at his house and asked him for his thoughts about money and risk taking. Patrick Doyle, MBA, is former investment advisor with over ten years experience in the industry. Although Peterson talks about a host of issues like addiction, I think everything he says here is DEEPLY relevant to finance.
Views: 456851 CapitalRev
ESG in credit risk and ratings
Moderated by: Carmen Nuzzo, Senior Consultant, Credit Ratings Initiative, PRI Olivia Albrecht, Senior Vice President, ESG Portfolio Strategist, PIMCO Laurel Peacock, Senior Manager, Sustainability, NRG Orhan Sarayli, Managing Director, Barings Anne Selting, Senior Director, Global Infrastructure Ratings, S&P Global Ratings John Thieroff, Vice President, Senior Analyst, Corporate Finance Group, Moody’s Investors Service 01:07 PRI: Overview 09:43 S&P Global: Overview 28:56 Moody’s Investors Service: Overview 44:43 How are you integrating ESG in credit? 50:21 As a result of increased ESG integration, how have your organisations changed? 57:11 How, as a corporate and an issuer, are you coping with the increased demand for data? 01:00:50 How can we reconcile the need to do backtesting and modelling looking at the past to predict something that will happen in the future, if it happens? 01:04:48 How have we, as an industry, got a responsibility in soliciting the data? 01:09:39 What about using scenario analysis to provide long-term risk guidance? 01:16:08 When are ESG factors relevant to credit? 01:21:45 Q&A 01:34:02 What would you like to see changed in the next five years, which could make your job easier?
Views: 455 PRI
What is Credit Risk Fund ? (Hindi)
Let's understand what is Credit-risk funds that invest in securities with lower ratings are gaining popularity among investors as there is a potential for investors to earn double-digit returns. ____________________________________________________________ Website : www.bankingguruji.in Facebook : https://www.facebook.com/bankinguruji Twitter : https://twitter.com/bankinguruji Instagram : https://www.instagram.com/bankinguruji ____________________________________________________________ Disclaimer : The information provided on this channel and its videos are for general purposes only. All opinions expressed here are my own & am not compensated by any financial institution for this.
Views: 933 Banking Guruji
Credit Risk Management Dashboard
Banking dashboard for management of credit risk on portfolio level. The interactive features include the selection of: - time horizon for the reporting period, - market segment, - geographic region, - product, - currency.
Views: 8512 FinMetrika
Is it safe to invest in a 5-star credit risk fund?
Live answers to your investment queries.
Views: 415 Value Research
Should I exit from a credit risk fund in less than 3 years?
Live answers to your investment queries.
Views: 555 Value Research
Conservative Portfolio | Low Risk Investors | Best Mutual Funds 2019 | Top Investment Ideas
Top mutual funds in India 2019 | Mutual fund Investing | mutual fund beginners in India for 2019 | best funds to invest | Best SIP Mutual Funds for Beginners 2019 | Mutual Fund Schemes for Beginners India | Low Risk Funds | Best mutual funds Hello Investors, Welcome Back to the Mutual Fund Talk Show First, we want to thank all of you for showing great love and appreciation with our past two videos which include an aggressive mutual fund portfolio and a balanced mutual fund portfolio. This is the last segment of the series which is all about the best conservative mutual fund portfolio for 2019. The conservative mutual fund portfolio is specially designed for investors who are willing to start investing in mutual funds and have a fear of risk. Also, it’s ideal for people who are close to their retirement age and cannot take much risk with their investment. This is why such a conservative folio is considered to be extremely safe as the model allocation and selection of funds help the investment to attract minimum possible risk. Besides, the annual average returns generated by the schemes are higher than that of traditional investment options like FD. The video covers a detailed analysis of the portfolio objective, portfolio allocation, fund selection, historical performance of the selected schemes, and lastly some important suggestions related to the schemes. The overall research is divided into four segments as mentioned above. The researched information will help you to match the suggested conservative portfolio with your investment preferences, and then you can decide if the allocation matches your investment style or not, and make the decision of investing accordingly. Lastly, one must remember that the suggested schemes are only for the conservative investors who are either new to mutual fund investment or the ones reaching close to their retirement age and have an investment horizon of around three years. Stay tuned with us, and we’ll help you learn about different investing concepts in mutual funds. You can also write to us with your feedback at [email protected] Share the video with your friends and family as well if you find it useful. For seeking any investment-related suggestion further, you can visit us at our website www.mysiponline.com. To start investing now in this best conservative mutual fund portfolio for investors in 2019, download our mobile app now: https://bit.ly/2FzAWMN Join the fastest growing online mutual fund platform and stay connected at: Facebook Page - https://www.facebook.com/mysiponline Google Plus - goo.gl/0IHtzA Pinterest - https://in.pinterest.com/mysiponline Instagram - https://www.instagram.com/mysiponline/ Twitter - https://twitter.com/MySIPonline #lumpsuminvestment #bestmutualfunds2019 #topmutualfunds #mutualfundsbeginners #conservativeportfolio Tags: Mutual Funds for BEGINNERS Best mutual funds for Sip in 2019 Top 5 Mutual Funds in india 2019 for Beginners Mutual funds for Beginners Mutual fund for Beginners India How to Select Best Mutual funds top sip funds 2019 top performing mutual funds in India 2019 best mutual funds of 2019 Best SIP Mutual Funds for Beginners 2019 Mutual Funds For Beginners India Best Mutual Funds in 2019 in India Top Mutual Funds for SIP in 2019 Best mutual funds in India for 2019 Best SIP mutual funds for 2019 in India Mutual funds for Beginners in 2 Minutes Conservative Portfolio Model Portfolio Theory Conservative Investment Plans Portfolio for low risk investors Best mutual funds for beginners Best mutual funds for retired How to build winning portfolio Diversified portfolio How to invest in mutual funds Mutual funds for short term Best mutual funds of 2019 FD vs Mutual Funds Investment ideas for beginners Best retirement plan India Conservative Investor friendly Fund Low risk stable returns Mutual Fund Portfolio Portfolio Allocation 2019 ICICI Prudential Mutual Funds ICICI Prudential Bluechip Fund ICICI Prudential Equity and Debt Fund Reliance Mutual Funds Reliance Income Fund Kotak Mutual Funds Kotak Credit Risk Fund Principal Mutual Funds Principal Hybrid Equity Fund Franklin Mutual Funds Franklin India Low Duration Fund CRISIL Index Best debt fund Long duration debt fund Low duration debt fund Best Schemes For Conservative Investors Conservative Investors Best credit risk fund Best aggressive hybrid fund Best large cap fund Stable returns Low risk Low risk portfolio Higher than FD returns Conservative Investments
Views: 7268 The Mutual Fund Talk
Credit risk Inflation risk Currency Risk and Liquidity risk
Credit risk Inflation risk Currency Risk and Liquidity risk
Credit default swaps (CDS) - What are they and should investors be worried about them?
Deemed financial weapons of mass destruction by Warren Buffet. Tim Bennett explains what a credit default swap (CDS) is and whether or not investors should be worried about them. Don't miss out on Tim Bennett's video tutorials -- get the latest video sent straight to your inbox each week, before it's released on YouTube: http://bit.ly/TimBSubscribe To receive Tim's 50 FREE MoneyWeek Basics emails: http://bit.ly/mwk-basics Watch over 100 of Tim's videos for free: http://MoneyWeek.com/tutorials Or download them to your mobile device: http://bit.ly/TimBpodcast For the most important financial stories and how to profit from them: http://MoneyWeek.com http://Facebook.com/pages/MoneyWeek/110326662354766 http://Twitter.com/moneyweek Video series by CFA UK Highly Commended journalist Tim Bennett. http://twitter.com/TimMoneyweek
Views: 164477 moneycontent
Credit Analysis | Process | 5 C's of Credit Analysis | Ratios
In this video on Credit Analysis, we look at Credit Analysis from Beginner’s point of view. 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐂𝐫𝐞𝐝𝐢𝐭 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬? ---------------------------------------- Credit analysis is a process of drawing conclusions from available data (both quantitative and qualitative) regarding the credit – worthiness of an entity, and making recommendations regarding the perceived needs, and risks. 𝐂𝐫𝐞𝐝𝐢𝐭 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 𝐏𝐫𝐨𝐜𝐞𝐬𝐬 ------------------------------------------ 1. Proposal 2. Inspection 3. Financial security 4. Market Review 5. Presentation of Proposal 6. Sanction for assessment 7. Data Collection 8. Analysis of various parameters 9. Credit Rating 10. Presentation for sanction 11. Terms & Condition Established 12. Proposal Approved 𝐓𝐡𝐞 𝟓 𝐂'𝐬 𝐨𝐟 𝐂𝐫𝐞𝐝𝐢𝐭 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 ---------------------------------------------- 1. Character 2. Capacity 3. Capital 4. Collateral (or guarantees) 5. Conditions 𝐂𝐫𝐞𝐝𝐢𝐭 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 𝐑𝐚𝐭𝐢𝐨𝐬 -------------------------------------- 1. Liquidity ratios 2. Solvability ratios 3. Solvency ratios 4. Profitability ratios 5. Efficiency ratios 6. Cash flow and projected cash flow analysis 7. Collateral analysis 8. SWOT analysis To know more about Credit Analysis Ratio, you can go to this link here: https://www.wallstreetmojo.com/credit-analysis/
Views: 9214 WallStreetMojo
Soledad Galli Machine Learning in Financial Credit Risk Assessment
Credit Risk assessment aims to determine the probability of loss on a particular asset, investment or loan. The objective of assessing credit risk is to determine if an investment is worthwhile, what steps should be taken to mitigate risk, and what the return rate should be to make an investment successful. An accurate Credit Risk Model allows the financial institution to provide fair prices to customers while ensuring predictable and minimal losses. At Zopa, we use machine learning to estimate Credit Risk. In this talk, I will cover the steps involved in the creation of our Credit Risk Model, including variable pre-processing, target definition, variable selection and building and evaluation of the different machine learning models.
Soledad Galli - Machine Learning in Financial Credit Risk Assessment
Filmed at PyData London 2017 Description Risk management is paramount to any lending institution, allowing it to perform well-informed decisions while originating loans. In this talk, I will describe our research and development approach to build our Credit Risk Prediction Model. I will browse over our target definition, feature optimisation, model building and tuning and our experience with model stacking. Abstract Credit Risk assessment is a general term used among financial institutions to describe the methodology used to determine the likelihood of loss on a particular asset, investment or loan. The objective of assessing credit risk is to determine if an investment is worthwhile, what steps should be taken to mitigate risk, and what the return rate should be to make an investment successful. Building a Credit Risk Prediction Model as accurate as possible becomes essential, as it allows the institution to provide fair prices to the customers while ensuring predictable and minimal losses. We build our Credit Risk Model by combining data gathered from the customer’s application on our online platform with their credit history provided by different credit agencies. In this talk, we will cover the research and development behind our recently created Credit Risk Model. We will discuss the definition of the target, the variable selection procedure, the different machine learning models built and how we optimise their hyper-parameters, as well us some of our latest research in model stacking and deep learning. Our development and Modelling pipeline is built in Python, using Pandas, Numpy, Scikit-Learn, XGBboost, Keras, Matplotlib and Seaborn. We combine the use of machine learning algorithms with data visualisation to better understand the variables and our customers, and to convey the message to different stakeholders within and outside the company. Throughout the talk, we will focus both on the intellectual rationale of the research and the utilisation of the different python tools to accomplish each task, highlighting both the problems encountered and the solutions devised. www.pydata.org PyData is an educational program of NumFOCUS, a 501(c)3 non-profit organization in the United States. PyData provides a forum for the international community of users and developers of data analysis tools to share ideas and learn from each other. The global PyData network promotes discussion of best practices, new approaches, and emerging technologies for data management, processing, analytics, and visualization. PyData communities approach data science using many languages, including (but not limited to) Python, Julia, and R. We aim to be an accessible, community-driven conference, with novice to advanced level presentations. PyData tutorials and talks bring attendees the latest project features along with cutting-edge use cases.
Views: 9638 PyData
Risk management in banks
For more information : https://www.educba.com/risk-management-in-banks/ In this VIdeo how risk management in banks is an important concept, what type of risks banks faces and how they curb it through risk management model is described
Views: 85676 eduCBA
Credit Ratings, Lecture 009, Securities Investment 101, Video 00011
In this lecture we discuss credit ratings and credit rating agencies, particularly as they relate to bond sales, credit risk, and default risk. We explain what credit risk is and what the ratings actually mean in terms of the risk of an organisation failing to meet its bond payment obligations. Along the way, we briefly mention commercial paper, liquidation rankings, the relationship of preference shares to bonds, and several more jargon terms used in the credit ratings arena. Previous: http://www.youtube.com/watch?v=G_jbOJn_JLg Next: https://www.youtube.com/watch?v=TxkGQ_QmuRs For financial education from London to Singapore and beyond, please contact MithrilMoney via the following website: http://mithrilmoney.com/ This MithrilMoney lecture was delivered by Andy Duncan, CQF. Please read our disclaimer: http://mithrilmoney.com/disclaimer/
Views: 13338 MithrilMoney
Basics of Portfolio Risk Management
The basics of portfolio risk management is the art of attaining a specific investment goal without exposing yourself to certain risks and biases. Here, I introduce you to the basic steps of portfolio risk management. I hope that you’ll learn something new here, instead of the usual “invest in low-volatility, blue-chip stocks” http://damonverial.com/ One of the biggest risks of a portfolio is the hidden biases you were exposed to when you were building your portfolio. Here, I demonstrate a set of practical principles for basic risk management. I start with three main principles and then introduce practical methods that stem from these principles. First, we discuss diversifying across investments. Then, we talk about hedging (with stock options). Finally, we discuss diversifying across time, which is hardly ever mentioned in diversifying your portfolio. #portfolioriskmanagement
Views: 7361 Damon Verial
16. Portfolio Management
MIT 18.S096 Topics in Mathematics with Applications in Finance, Fall 2013 View the complete course: http://ocw.mit.edu/18-S096F13 Instructor: Jake Xia This lecture focuses on portfolio management, including portfolio construction, portfolio theory, risk parity portfolios, and their limitations. License: Creative Commons BY-NC-SA More information at http://ocw.mit.edu/terms More courses at http://ocw.mit.edu
Views: 577288 MIT OpenCourseWare
Operational Risk Management in Financial Services
Operational risk can have a crippling effect on a company if not managed properly. This is especially true in the financial services industry. Banks and investment firms must pay close attention to variables that have the potential to impact their operations, not only from the breakdown of technology and processes, but also from a personnel perspective. The responsibility of managing one's money is great, and the inability to properly anticipate and manage potential risk factors can have a devastating effect, all the way up to the industry level. A case in point was the subprime mortgage crisis of the late 2000s, which led to a nationwide economic recession. Mike Pinedo, the Julius Schlesinger Professor of Operations Management at New York University's Stern School of Business, is an expert in risk management research, particularly in the context of the financial services industry. In his presentation at The Boeing Center's 13th annual Meir Rosenblatt Memorial Lecture, he described the main types of primary risks in a financial services company: market risk, credit risk, and operational risk. Ops risk, which is the risk of a loss resulting from inadequate or failed internal processes, people, or external events, may be the most important factor, he claimed. _________________________________________________________________________________________ For access to exclusive digital content, events, cutting-edge research, and professional training, download our mobile app → https://bit.ly/bcsci-app
Views: 12103 The Boeing Center
Investment-Grade Credit Is High Risk
DoubleLine Capital’s research indicates investment-grade credit is the most overvalued it’s been in its history versus Treasurys. Gundlach sees poor performance if the 10-year rate rises above 3%.
Views: 715 MastersFunds
Credit risk in bonds
Credit risk in bonds I've tried to emphasize interest rate risk when you invest in bonds because many people don't understand this risk even though it's probably the biggest risk facing today's bond investor. But almost everyone understands credit risk. Credit risk is the risk that the issuing company or government can't meet the promised interest or principal payments. US Treasuries face least credit risk In this case, US Treasury bonds and mortgage securities called Ginnie Maes offer the highest credit ratings. These securities are backed by the "full faith and credit" of the US government. Government agency securities After US Treasuries and Ginnie Maes come debt issued by quasi-governmental agencies like the Federal Home Loan Mortgage Corporation also known as Freddie Mac. Although debt issued by these corporations does not carry the explicit backing of the US government, most bond traders believe the government will back up the companies if their bankruptcy is threatened. Blue chip corporations Next comes the debt of large, blue chip corporations like General Electric. This debt is normally called investment grade debt. Debt issued by large corporations is normally rated by independent companies like Moody's, and Standard & Poors. These companies do extensive research into the issuing company's ability to repay their bonds. Hierarchy of claims Before we jump further down into junk bonds, we should spend a little time talking about the hierarchy of claims on a company's assets and see what happens if a company files or is forced into bankruptcy. According to the US Constitution, bankruptcy proceedings are handled by federal law. US bankruptcy laws were rewritten in 1978 to change the traditional pecking order of those who can make claims against a bankrupt company. Lawyers and the IRS are highest Highest on the pecking order is the bankruptcy lawyers. Lawyers write the laws, so it shouldn't be too surprising that they want to get paid for their efforts as they try to dole out the company's assets. Next comes the IRS, then the firm's employees and their pension funds. After them come the company's secured creditors. These creditors have loaned the company money, but the loan is secured by a mortgage on a piece of real property like a building or heavy equipment. Most blue chip debt is unsecured Although secured debt is common for smaller companies, the majority of blue chip corporate debt is unsecured debentures. Here the lender only has the promise that the firm will honor its debt. This is similar to unsecured credit card debt that most consumers carry. However, there are several levels of unsecured debt. So-called senior debt holders are paid off before junior or subordinated debt holders. Unsecured creditors also include the suppliers who provided the company with merchandise. After the junior debt holders come the preferred stockholders. Finally, if there's any money left, the common stockholders receive compensation for their ownership in the company. Chapter 11 and 7 bankruptcy There are two forms of corporate bankruptcy, named for sections in the federal law which govern their policies. One is Chapter 11, and this type appears in the news most often. In this case, the company continues operation, but it receives a temporary reprieve from its creditors while it works out a debt repayment plan. The second is Chapter 7. In this more extreme case, the company is liquidated and assets are sold off to satisfy creditors. A company can be forced into bankruptcy by its creditors if the company fails to meet its obligations. The company also voluntarily can choose to file for bankruptcy. Once in bankruptcy, a federal court plays a major role in the handling of claims. Typical bankruptcy reorganization Although it's difficult to generalize about bankruptcy proceedings, if a company files for bankruptcy, and then later re-emerges as an operating company, the old creditors and shareholders have their claims shifted down one level in the claims hierarchy. For example, the old senior debt holders become junior creditors, the old junior debt holders become stockholders and the old stockholders lose everything or perhaps get some equity warrants. Ratio analysis for credit worthiness To avoid the unpleasantness of bankruptcy, bond investors and independent rating agencies analyze a company's financial condition. Typically, investors look at various ratios to see if the firm is a good risk. One of the most common ratios is the firm's current ratio. Current ratio Times interest earned ratio Debt to equity ratio Copyright 1997 by David Luhman
Views: 1052 MoneyHop.com
Risk Management - Lecture 01a
Textbook: Saunders and Cornette "Financial Institutuons Management - A Risk Management Approach". Chapter 7. Introduction to Risk interest-rate risk, market risk, credit risk, default, default risk, off-balance sheet risk, contingent liability, forex risk, currency, risk, country risk, political risk, sovereign risk, technology risk, operational risk, liquidity risk, insolvency risk, maturity mismatch, duration, duration gap, normal yield curve, yield differential, inverted yield curve, refinancing, refinancing risk, bankruptcy risk, legal risk, liquidation risk, reinvestment risk, zero interest-rate policy, ZIRP, hedge, market risk, price risk, trading risk, systematic risk, diversifiable risk, diversification risk, correlation risk, speculative risk, speculation, investment horizon, speculation.
Views: 14421 Krassimir Petrov
What is SOVEREIGN CREDIT RISK? What does SOVEREIGN CREDIT RISK mean? SOVEREIGN CREDIT RISK meaning - SOVEREIGN CREDIT RISK definition - SOVEREIGN CREDIT RISK explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. Sovereign credit risk is the risk of a government becoming unwilling or unable to meet its loan obligations, as happened to Cyprus in 2013. Many countries faced sovereign risk in the Great Recession of the late-2000s. This risk can be mitigated by creditors and stakeholders taking extra precaution when making investments or financial transactions with firms based in foreign countries. Five key factors that affect the probability of sovereign debt leading to sovereign risk are: debt service ratio, import ratio, investment ratio, variance of export revenue, and domestic money supply growth. The probability of loss increases with increases in debt service ratio, import ratio, variance of export revenue and/or domestic money supply growth. Frenkel, Karmann, Raahish and Scholtens also argue that the likelihood of rescheduling decreases as investment ratio increases, due to resultant economic productivity gains. However, Saunders argues that debt rescheduling can become more likely if the investment ratio rises as the foreign country could become less dependent on its external creditors and so be less concerned about receiving credit from these countries/investors.
Views: 422 The Audiopedia
Debt Funds RISK (HINDI)
Debt Funds RISK is not visible but mostly hidden. There is a common perception that Debt Funds are completely SAFE but unfortunately, it is not correct. Debt mutual funds are tax efficient and can deliver better returns than FD but these are some hidden Debt Funds RISK. In this video, i will share 7 such risks. 1. The first risk is a misconception that debt funds are safe. The reason being, bond yield is volatile. The volatility in bond yield means debt funds can deliver negative returns in short term say 1 week, 1 month etc. 2. Bond yield and repo rate should move in tandem with each other but unfortunately, it is the ideal scenario and in a practical scenario, bond yield is ahead of repo rate. 3. As an investor, i should keep a watch on FII activity in debt segment. Any redemption pressure can put pressure on debt funds. 4. Rating of debt instruments is another risk. Normally to deliver superior funds, credit opportunities fund invest in low credit rating papers. There NAV negatively. 5. Global and Domestic factors also play imp roles like crude oil, inflation, US fed rate and rupee movement. 6. Bond yield is always ahead of times thus you should invest at right time. 7. Inflation is a key criterion. Normally debt fund performs well during high inflation compared to low inflation. If you liked this video, You can "Subscribe" to my YouTube Channel. The link is as follows https://goo.gl/nsh0Oh By subscribing, You can daily watch a new Educational and Informative video in your own Hindi language. For more such interesting and informative content, join me at: Website: http://www.nitinbhatia.in/ T: http://twitter.com/nitinbhatia121 G+: https://plus.google.com/+NitinBhatia #NitinBhatia
Views: 22136 Nitin Bhatia
Risks of investing in Mutual funds
To know more about Mutual Funds click on this link http://goo.gl/znc8g What are the risks involved in investing in a mutual fund? While Equity funds are exposed to market risk, Debt fund are mainly exposed to credit risk and interest rate risk.
Views: 15533 DSP Mutual Fund
Types of Risks Involved when Investing in Stocks, Bonds, and Real Estate
Let's make the financial world very simple and understandable. Types of risks involved with investing in stocks, bonds, and real estate. Have you ever wondered exactly how much risk is involved with the investing? It never fails, when I have new clients coming in, they say they want all of the upside but none of the downside. Basically, they want their cake and to eat it too. However, the problem is you can't invest without taking some risks.  We face a variety of risks when investing route. So today I'm going to go over what those are and how you can deal with them. Types of Risk Involved with Investing 1. Market risk The risk of investments declining in value because of economic developments or other events that affect the entire market. The main types of market risk are equity risk, interest rate risk, and currency risk.  Equity risk – applies to an investment in shares. The market price of shares varies all the time depending on demand and supply. Equity risk is the risk of loss because of a drop in the market price of shares. Interest rate risk – applies to debt investments such as bonds. It is the risk of losing money because of a change in the interest rate. For example, if the interest rate goes up, the market value of bonds will drop. Currency risk – applies when you own foreign investments. It is the risk of losing money because of a movement in the exchange rate. For example, if the U.S. dollar becomes less valuable relative to the Canadian dollar, your U.S. stocks will be worthless in Canadian dollars. 2. Liquidity risk The risk of being unable to sell your investment at a fair price and get your money out when you want to. To sell the investment, you may need to accept a lower price. In some cases, such as exempt market investments, it may not be possible to sell the investment at all. 3. Concentration risk The risk of loss because your money is concentrated in a particular type of investment. When you diversify your investments, you spread the risk over different types of investments, industries, and geographic locations. 4. Credit risk The risk that the government entity or company that issued the bond will run into financial difficulties and won't be able to pay the interest or repay the principal at maturity. Credit risk applies to debt investments such as bonds. You can evaluate credit risk by looking at the credit rating of the bond. For example, long-term Canadian government bonds have a credit rating of AAA, which indicates the lowest possible credit risk. 5. Inflation risk The risk of a loss in your purchasing power because the value of your investments does not keep up with inflation. Inflation erodes the purchasing power of money over time – the same amount of money will buy fewer goods and services. Inflation risk is particularly relevant if you own cash or debt investments like bonds. Shares offer some protection against inflation because most companies can increase the prices they charge to their customers. Share prices should, therefore, rise in line with inflation. Real estate also offers some protection because landlords can increase rents over time. 6. Horizon risk The risk that your investment horizon may be shortened because of an unforeseen event, for example, the loss of your job. This may force you to sell investments that you were expecting to hold for the long term. If you must sell at a time when the markets are down, you may lose money. 7. Longevity risk The risk of outliving your savings. This risk is particularly relevant for people who are retired or are nearing retirement. 8. Foreign investment risk The risk of loss when investing in foreign countries. When you buy foreign investments, for example, the shares of companies in emerging markets, you face risks that do not exist in Canada, for example, the risk of nationalization. 9. Call Risk  This is a risk for bond issues and refers to the possibility of a debt security being called before maturity. This typically takes place when interest rates are dropping. 11. Social / Political Risk  The risk associated with the possibility of nationalization, unfavorable government action or social changes resulting in a loss of value is called social or political risk. These are just a blip of the different types of risk that are involved with investing. You can experience any of these at any time! I tell you all that because investing is complicated, which is why I implore you to hire a CERTIFIED FINANCIAL PLANNER™. Making that choice could help make your life financially simple. Contact us if you have questions about these or any more of the risks involved with investing. Thanks for watching Types of risks involved with investing in stocks, bonds, and real estate. Check out my blog, www.financiallysimple.com
Dr Jessica Stauth: Portfolio and Risk Analytics in Python with pyfolio | PyData NYC 2015
Dr Jessica Stauth: Portfolio and Risk Analytics in Python with pyfolio PyData NYC 2015 Pyfolio is a recent open source library developed by Quantopian to support common financial analyses and plots of portfolio allocations over time. Pyfolio is a tear sheet that consists of various individual plots that provide a comprehensive image of the performance of a trading algorithm and features advanced statistical analyses using Bayesian modeling. (http://quantopian.github.io/pyfolio/). Python is quickly establishing itself as the lingua franca for quantitative finance. The rich stack of open source tools like Pandas, the Jupyter notebook, and Seaborn, provide quants with a rich and powerful tool belt to analyze financial data. While useful for Quantitative Finance, these general purpose libraries lack support for common financial analyses like the computation of certain risk factors (Sharpe, Fama-French), or plots of portfolio allocations over time. Pyfolio is a recent open source tool developed by Quantopian to fill this gap. At the core of pyfolio is a so-called tear sheet that consists of various individual plots that provide a comprehensive image of the performance of a trading algorithm/portfolio. In addition, the library features advanced statistical analyses using Bayesian modeling. The software can be used stand-alone, w**ith our open-source backtesting library Zipline and is available on the Quantopian platform. This talk will be a tutorial on how to get the most out of this library (http://quantopian.github.io/pyfolio/). Slides available here: http://www.slideshare.net/JessStauth/pydata-nyc-2015 Relevant GitHub repos: https://github.com/quantopian/pyfolio https://github.com/quantopian/zipline www.pydata.org PyData is an educational program of NumFOCUS, a 501(c)3 non-profit organization in the United States. PyData provides a forum for the international community of users and developers of data analysis tools to share ideas and learn from each other. The global PyData network promotes discussion of best practices, new approaches, and emerging technologies for data management, processing, analytics, and visualization. PyData communities approach data science using many languages, including (but not limited to) Python, Julia, and R. PyData conferences aim to be accessible and community-driven, with novice to advanced level presentations. PyData tutorials and talks bring attendees the latest project features along with cutting-edge use cases.
Views: 38407 PyData
Risk Management - Lecture 03
technology risk, operational risk, merger, synergy, synergy risk, reputational risk, fraud risk, hacker risk, financial terrorism, event risk, trading, trading portfolio, trading risk, investment portfolio, banking portfolio, credit risk, debt default, sovereign risk, country risk, debt moratorium, expropriation, expropriation risk, taxation risk, regulatory risk, liquidity risk, market depth, thin market, illiquid market, fire-sale, insolvency risk, macroeconomic risk, inflation risk,
Views: 1830 Krassimir Petrov
CAIA Mar 2018 - Credit Risk and the Structuring of Cash Flows - Dr. Thomas Wu -  CAIA, CFA, FRM
Kaplan Instructor Dr. Thomas Wu in Hong Kong presenting a section of Topic for the 2018 CAIA Level 1 and Level 2 Exam.
Views: 2286 Kaplan Financial KFFM
Risks of Investing in Mutual Fund
To know more about Mutual Funds click on this link http://goo.gl/znc8g What are the risks involved in investing in a mutual fund? While Equity funds are exposed to market risk, Debt fund are mainly exposed to credit risk and interest rate risk.
Views: 31268 DSP Mutual Fund
Credit Risk Investors – Get to Know Fannie Mae’s Desktop Underwriter
Fannie Mae’s Desktop Underwriter® (DU) is the most widely used automated underwriting system in the mortgage industry. Watch this video to see how DU works and discover some of the innovative ways the software helps to improve the overall loan manufacturing process. Learn more about Fannie Mae’s Credit Risk Transfer programs here: http://fanniemae.com/portal/funding-the-market/credit-risk/index.html
Views: 1135 Fannie Mae
What is Credit Risk? - Term Buster - Franklin Templeton India
What is Credit Risk? Credit rating is used to identify the extent of credit risk associated with a loan. A borrower may not repay a loan and that the lender may lose the principal of the loan or the interest associated with it. Credit risk is the possibility of a loan repayment being default or delayed A higher credit rating would mean lower chances of such risks. Watch our “Term Busters” series and de-complicate investments." Visit Investor Education Section of our website - https://www.franklintempletonindia.com/investor/investor-education/new-to-investing Watch more, and we’ll help you learn about different types of funds offered by Franklin Templeton. https://www.youtube.com/playlist?list=PLpDLpRd877mTfptx_2dTYyY8g6nfa-Qk6 You can also write to us with your feedback ([email protected]) View more such videos in the playlist Franklin Templeton Academy: https://www.youtube.com/playlist?list=PLpDLpRd877mSF4p7DIh5OMhS6zktFJ4IP Invest in Mutual Funds with Franklin Templeton. Official Website: https://www.franklintempletonindia.com/ Facebook: https://www.facebook.com/FranklinTempletonIndia/ LinkedIn: https://www.linkedin.com/company/franklin-templeton-investments Instagram: https://www.instagram.com/ftiindia/?hl=en Twitter: https://twitter.com/ftiindia?lang=en
Views: 953 TempletonIndia
Video no.5  Credit risk fund.
Video from Dilip Sahakari
Views: 216 Dilip Sahakari
Fixed Income Investing: Risk aggregation 🧯is not necessary | BUILDING BLOCKS
Most investors assume that investing in fixed incomes implying aggregating multiple risks, including but not limited to interest risk and credit risk. In this video, MJ Lytle explains the breakdown in fixed income risks and explain how investors can choose which type of exposure they want, using the example of corporate bonds. Through fixed income ETFs or other instruments, investors can focus on simply getting the spread associated with the particular corporate issuer. Please like and subscribe! https://www.youtube.com/channel/UCIVDZZ2reIURr1tCoQ4ZF9Q?sub_confirmation=1 ABOUT MJ Michael John (“MJ”) Lytle is CEO of Tabula. Previously MJ was a founding partner in Source, an investment manager focused on the creation and distribution of exchange-traded funds which offer exposure to equity, fixed income, and commodities. Source was purchased by Invesco in 2017. Prior to Source, MJ spent eighteen years at Morgan Stanley with a variety of roles across Corporate Finance, Capital Markets Origination, Trading, Sales, Equity, Fixed Income, Private Wealth and Technology Strategy. MJ has a Bachelor of Arts in Economics and Government from Dartmouth College. ABOUT TABULA INVESTMENT MANAGEMENT Tabula is a new ETF provider focused on fixed income for European institutional investors. The company believes that although fundamentals and market dynamics are positive for fixed income, the persistent innovation that ignited the equity ETF market has been lacking in this sector. https://www.tabulaim.com/ ABOUT INVESTORAMA Investorama is about Meaningful, Visual, Financial Education. In Ancient Greek ‘orama’ means ‘sight’ or ‘spectacle’. We plan to make the world of finance a meaningful spectacle by debunking the myths, interviewing the experts, discovering the rising stars, and finding purpose. You can also check InvestOrama on Instagram http://instagram.com/invest.orama.tv Or follow me, George Aliferis, the founder of the channel http://twitter.com/officialorama https://www.quora.com/profile/George-Aliferis https://medium.com/@orama DISCLOSURE The views and opinions expressed herein are those of the speakers as of the date of publication, are subject to change without notice as economic and market conditions dictate. Factual information has been obtained from sources we believe to be reliable, but its accuracy, completeness, or interpretation cannot be guaranteed. This video has been provided for informational purposes only and should not be considered as investment advice or a recommendation of any particular strategy or investment product, or as an offer to buy or sell any securities or related financial instruments in any jurisdiction. Any investment or strategy mentioned herein may not be suitable for every investor. Past performance is not indicative of future results.
Views: 166 InvestOrama
FRM: Counterparty credit exposure
Study note: Counterparty credit risk is harder because (i) the initial value is 0 and the future value is highly uncertain and (ii) the contract can gain or lose. Two key metrics are Expected Exposure and Potential Future Exposure (PFE, which is essentially a VaR). For more financial risk videos, visit our website! http://www.bionicturtle.com
Views: 41187 Bionic Turtle
Interest Rate Risk
Remember the value of Bonds can fluctuate up and down based on factors such as the movement of Interest Rates, This is Called Interest Rate Risk, it affects all bonds regardless of there credit Quality. Watch the Video to know more about the Interest Rate risk and understand the term in a simple yet easy manner! Visit Our website :- http://www.trpcweb.com/education/education-videos/