Illiquidity option

Part 1 of ebook "Introduction to derivative financial instruments: Options, futures, forwards, swaps, and hedging" provides readers with contents including: innovation in finance through derivative instruments; beware of assumed exposure and illiquidity; liquidity, solvency, and derivatives exposure;...

166p tuongnhuoclan 27-11-2023 8 4   Download

The guidance formulated by G20 to assess the systemic importance of financial institutions, markets and instruments (IMF, BIS, and FSB, 2009 [19]) analyzes that the effective control of systemic risk is one of the most important things in the macroprudential regulation at current stage. Although the current banking regulation focuses on funding liquidity risk such as LCR and NSFR of Basel III, financial institutions would actually have highly procyclical effects between funding and market liquidity at the same time, leading to liquidity spirals and threatening to financial stability.

18p cothumenhmong4 24-03-2020 24 2   Download

The crisis has shown that securitization is heavily dependent on markets’ perceptions and could be subject to sudden bouts of illiquidity generated from investors’ concerns. Namely the consequences of the increased participation in bank funding by financial markets’ investors and the large increases in securitized assets, can led to acute liquidity crises.

0p enterroi 01-02-2013 38 3   Download