In this chapter, students will be able to understand: Know when to use consumer loans and be able to differentiate between the major types; identify the various sources of consumer loans; choose the best loans by comparing finance charges, maturity, collateral, and other loan terms; describe the features of, and calculate the finance charges on, single-payment loans; evaluate the benefits of an installment loan; determine the costs of installment loans and analyze whether it is better to pay cash or to take out a loan.
The second area of related work is feature modeling and design assembly. The two projects
described here are reminiscent of the feature-based modeling and design for assembly or design
for manufacturability research prevalent in the late 1980s and 1990s in the AI and Design
community (Dixon et al., 1987, Shah, 1991, Shah and Mantyla, 1996). Jung and Nousch (2000)
describe a system for designing and fabrication of furniture using computer graphics modeling.
The UK Programme Board identiﬁed ﬁve key workstre
each of which were led by one of the four countries
and which are outlined on Page 14 (Box 1). A full list
members of each of the workstreams and national
steering groups is given at Appendix 2 and we
acknowledge the tremendous commitment
shown by members and chairs.
Underpinning the work of the workstreams
were the principles of user involvement,
professional education, leadership, and
the provision of safe, emotionally
satisfying, effective and
care to meet user needs.
At the same time there were progressively more skeptical views on the impact of
securitization on the financial system stability. Some argue that by making illiquid loans liquid
securitization could increase, other things being equal, the risk appetite of banks (Calem and
LaCour, 2003; Wagner, 2007; and Brunnermeier and Sannikov, 2009). Risk sharing within the
financial sector through securitization can also amplify bank risks also at the systemic risk level
(Brunnermeier and Sannikov, 2010).
The need for a money market arises because receipts of economic units do not coincide with their
expenditures. These units can hold money balances—that is, transactions balances in the form of currency,
demand deposits, or NOW accounts—to insure that planned expenditures can be maintained independently
of cash receipts. Holding these balances, however, involves a cost in the form of foregone interest. To
minimize this cost, economic units usually seek to hold the minimum money balances required for day-to-
Suppose that you've nally made your model as simple as possible. At this point your
model is probably too simple to be of much interest: it's likely just an example or a special
case. But if you have made your model as simple as possible, it will now be much easier
to see how to generalize it since you know what the key pieces are that make the model
Here is where your education can be helpful. At last you can use all those techniques
you learned in graduate school. Most of the time you were a student you probably stud-
ied various canonical models: things...
The U.S. newspaper industry is in the midst of a historic restructuring, buffeted by a deep
recession that has battered crucial advertising revenues, long-term structural challenges as readers
turn to free news and entertainment on the Internet, and heavy debt burdens weighing down some
major media companies. Eight major U.S. newspaper companies filed for bankruptcy between
2008 and early 2010 (though nearly all have since emerged as reorganized companies), while
hundreds of smaller papers went out of business or moved to Web-only publications.
Sperm cells are highly specialized cells that are able to move. Each
sperm cell must be able to deliver a haploid set of chromosomes from the
male to an egg cell in the female reproductive tract. The structure of a
mature sperm cell is well adapted to its function. Almost the entire head
of the sperm is the haploid nucleus, the all-important genetic information
that is delivered to the egg. Attached to the head of the sperm is a long
tail that propels the sperm along.
The issuer sells
bonds to capital market investors and the proceeds are deposited in a collateral
account, in which earnings from assets are collected and from which a ﬂoating rate
is payed to the SPV. The sponsor enters into a reinsurance or derivative contract
with the issuer and pays him a premium. The SPV usually gives quarterly coupon
payments to the investors. The premium and the investment bond proceeds that
the SPV received from the collateral are a source of interest or coupons paid to
Overall, the rapid development in the market for credit risk transfer played a major role
altering banks’ functions. Structurally, securitization allowed banks to turn traditionally illiquid
claims (overwhelmingly in the form of bank loans) into marketable securities. The development
of securitization has therefore allowed banks to off-load part of their credit exposure to other
investors thereby lowering regulatory pressures on capital requirements allowing them to raise
As regards collateral, the pledging of collateral increases the PD when compared
with unsecured lending. Within secured loans, the PD of those that are 100% secured is
lower than that of those secured to a value of over 50% but not to a full 100%, although the
latter account for only a small percentage of the sample. Finally, loans guaranteed by a credit
institution or the public sector have a lower likelihood of default, less even than in the case of
unsecured loans. Note that this latter class of loan is subject to a double evaluation, i.e. by the
Audit committees of public companies and registered
investment companies have direct responsibility to oversee
the integrity of a company’s financial statements and to hire,
compensate and oversee the external auditor. Public focus
on how audit committees discharge their responsibilities,
including their oversight of the external auditor, has
Each year, audit committees should evaluate the external
auditor in fulfilling their duty to make an informed
recommendation to the Board whether to retain the
Take for example an investment contract with an annuitisation option where
the annuity factor is the same as new annuities offered by the insurer at the
time the option is executed. Since the insurer is free to determine the
annuity factor, the annuitisation is in substance the formation of a new
contract, the terms of which are agreed at the date the option is exercised.
The contract cannot therefore be classified as an insurance contract
Our study of nearly 150 organisations
, of which 70% had PMOs*, showed that, overall, those
organisations with PMOs did not have higher project success rates, but somewhat counter-
intuitively, they had lower levels of management satisfaction with the level of project performance
and value delivered.
Finally, we reﬁne the accuracy of the computed per-
formance model through experimental sampling. We
use statistical interpolation between computed and ex-
perimental sample points in order to re-approximate the
per-application performance models, thus dynamically
reﬁning the model. We experimentally show that, by us-
ing this method, convergence towards near-optimal con-
ﬁgurations can be achieved in mere minutes, while an
exhaustive exploration of the multi-dimensional search
space, representing all possible partitioning conﬁgura-
tions, would take weeks, or even months.
Bloom Energy’s product is proving an increasingly popular choice for data centres and in March
2012 the company launched its ‘Mission Critical Practice’, a service that aims to secure the
energy supply for critical government and business IT systems. By providing highly reliable power
independently of the electricity grid, fuel cell systems help to improve data security and minimise
the effect of grid disruptions (for more information on this application please refer to the Special
Feature on page 30).
Chapter 24 - Managing risk off the balance sheet with loan sales and securitization. This chapter discussed the increasing role of loan sales in addition to the legal and regulatory factors that are likely to affect the future growth of this market. The chapter also discussed three major forms of securitization pass-through securities, collateralized mortgage obligations (CMOs), and mortgage-backed bonds and described recent innovations in the securitization of other FI assets.
Despite the success in controlling ináation, during the late 1990s-early 2000 international
capital markets witnessed large swings in stock prices generating concern among academics
and policy-makers about the impact of stock price movements on the real economy and the
broader consequences of ináation targeting. Kontonikas and Ioannidis (2005) show that an
ináation targeting regime with strong interest rate reaction to ináation should lead to lower
stock market volatility. On the other hand, the New Environment Hypothesis (NEH, see
In the United States, women who are HIV positive and are aware of that fact are advised not to
breast-feed their infants. Chemicals present in breast milk act together, with time and cold
temperatures, to destroy the HIV present in expressed breast milk.
The risk to childcare providers who feed children bottles of expressed breast milk is extremely low
because the risk of transmission from skin/mucous membrane exposures to HIV is extremely low
(probably much lower than...