The New Paradigm for Financial Markets
also by george soros
The Age of Fallibility: The Consequences of the War on Terror The Bubble of American Supremacy: The Cost of Bush’s War in Iraq George Soros on Globalization Open Society: Reforming Global Capitalism The Crisis of Global Capitalism: Open Society Endangered Soros on Soros: Staying Ahead of the Curve Underwriting Democracy Opening the Soviet System The Alchemy of Finance: Reading the Mind of the Market
478 Making Key Strategic Decisions APPENDIX A
DUE DILIGENCE EXAMINATION OUTLINE
The goal of due diligence is to understand fully
the business of the issuer, to identify the risks and problems it will face, and to assure that the registration statement is complete and accurate. Thoughtful analysis concerning the particular issuer as well as the experience, knowledge and care of the underwriters and their counsel in this process represent the critical ingredients of due diligence.
There are a number of good reasons to ground but primary among them
is to ensure personnel safety. The following agencies and organizations
all have recommendations and / or standards for grounding, to ensure
that personnel safety is being protected.
Randy’s dream has come true. An insurance underwriter for
the last four years, he can finally call himself a manager. His
boss recently told him, “You’ve worked hard, the agents like
you, and your results have been outstanding. So we’re going to
put you in charge of one of our underwriting units. Our hope is
you’ll teach your employees how you do it, and your success
will rub off on them.”
Reoffering yield In a purchase and sale, the yield to maturity at which the underwriter offers to sell the bonds to investors.
Reopen an issue The Treasury, when it wants to sell additional securities, will occasionally sell more of an existing issue (reopen it) rather than offer a new issue. Reorganization Creating a plan to restructure a debtor's business and restore its financial health.
Replacement cost Cost to replace a firm's assets.
Replacement cycle The frequency with which an asset is replaced by an equivalent asset. Replacement value Current cost of replacing the firm's assets.
Lightning protection systems have changed drastically since Benjamin Franklin first invented lighting rods in
1752. Today's systems must protect modern appliances, electrical systems and building constructions - they
have to keep up with tile changing requirements of modern technology.
Underwriters Laboratories Inc. (UL) keeps up with these changes.
The balance sheets of life and non-life insurance companies reflect the importance of
technical (insurance underwriting) risks for insurance firms. Life insurance companies
typically have the greater part of their liabilities taken up by technical provisions, in some
jurisdictions more than 80 percent. This reflects the amount that the firm is setting aside to
pay potential claims on the policies that it has written. Correspondingly, more than 90 percent
of the assets of life insurance companies comprise the investment portfolio held to support
Finding a solution to structural poverty requires a review of the devel-
opment model as well as the macroeconomic policies adopted by gov-
ernments. Social development and economic growth must be under-
stood as integral parts of the same process. Eliminating the causes of
structural poverty requires overcoming the false dichotomy between the
social and economic aspects of development. In other words, poverty
reduction should be the main objective of macroeconomic policies in
the social sectors....
As the financial system in most emerging economies is centred on banks, an important aspect of the
development of bond markets is the impact on the banking system. One frequently heard worry is that
bond markets could take business away from the banks. This raises some potential concerns for bank
supervisors. On the other hand, if it means firms are less vulnerable to weaknesses in the banking
system, corporate bond issuance can help central banks achieve steady economic growth.
Many associations let insurance companies and agents offer long-term care
insurance to their members. These policies are like other types of long-term
care insurance and typically require medical underwriting. Like employer-
group policies, association policies usually give their members a choice of
benefit options. In most cases, policies sold through associations must let
members keep or convert their coverage after leaving the association. Be
careful about joining an association just to buy any insurance coverage.
Review your rights if the policy is terminated or canceled. ...
Most crop insurance policies are either production-based or revenue-
based. For production-based policies, a farmer can receive a payment if
there is a production loss relative to the farmer’s historical production per
acre. Revenue-based policies protect against crop revenue loss resulting
from declines in production, price, or both.
If you already have health problems that are likely to mean you will need
long-term care (for example, Alzheimer’s or Parkinson’s disease), you
probably won’t be able to buy a policy. Insurance companies have medical
underwriting standards to keep the cost of long-term care insurance
affordable. Without such standards, most people would not buy coverage
until they needed long-term care services.
Some states have a regulation requiring the insurance company and the
agent to go through a worksheet with you to decide if long-term care
insurance is right for you.
This paper primarily addresses the relationship between a fund’s board and adviser and their
respective roles in addressing risk issues impacting the fund. Some of the discussion may also
apply to the fund’s relationship with other service providers, such as the fund’s administrator,
principal underwriter, transfer agent, accountant, and custodian. Those providers also manage the
risks associated with the services they provide to the funds. For instance, the transfer agent may
manage the risks associated with maintaining shareholder records.
When I first began discussing the concept of a book on governmental accounting
for nonaccountants, the publisher, John Wiley & Sons, Inc., asked a
good question: “Who would be interested in a book on governmental accounting
who is not an accountant?” The quick answers were obvious—bond underwriters
and investors, lawyers, elected officials, financial and other managers working in
government, labor unions, and so forth.
The final risk-sharing component of the SRA is the “net book quota share,” defined as the
proportion of a company’s overall gain or loss over its entire “book of business” that is ceded to
the government after all other reinsurance provisions in the SRA have been applied. Under the
SRA, companies must cede a 6.5% share of their cumulative underwriting gains/losses to the
government. During years in which there are underwriting gains, 1.5% of this share is distributed
back to companies that sell and service policyholders in 17 underserved states.
All estimates in this report are based on samples of 100 cases or more. Estimates are not shown for
certain race groups, nor for children living with no employed adults, because these samples were too
small. The tables in this report show estimated percentages of Wisconsin residents based on survey
responses. These estimates should not be treated as precise results because they are derived from a
sample. A 95 percent confidence interval (+) is printed in a column next to each percentage estimate; this
means that 95 percent of similar surveys would obtain an estimate within...
During the second half of the 1990s, mortgage underwriting increasingly incorporated
credit scores and other automated evaluations of credit histories. As of 1999,
approximately 60 to 70 percent of all mortgages were underwritten using an automated
evaluation of credit, and the share was rising2
The automated quantification of the information in credit reports has not simply been
used to decide whether or not to extend credit, but has also been used to set prices and
terms for mortgages and other consumer credit.
The increased speed at which underwriting decisions can be made has created pressure to
complete credit applications more quickly. Some contend that the combination of this
increased pace and the increased ability to customize the price charged based on credit
allows lenders to approve a larger share of consumers for loans, but not necessarily at the
best rates for which they qualify.
In this scholarly yet highly accessible work, Eva Hemmungs Wirten
traces three main themes within the scope of cultural ownership: au-
thorship as one of the basic features of print culture, the use of intellec-
tual property rights as a privileged instrument of control, and, finally,
globalization as a precondition under which both operate. Underwrit-
ten by rapid technological change and increased global interdepend-
ence, intellectual property rights are designed to protect a production
that is no longer industrial, but informational....
Under witing Risk: Hiểm Họa Đảm Nhiệm Phân Phối Chứng Khoán Mới. Hiểm họa đáng kể nhất là lãi suất hiện hành có thể gia tăng ngoài tiên liệu trước khi trái phiếu mới được bán hết ra thị trường ở một giá có lời. Xem Underwriter.