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The recovery rates are a crucial element for calculating credit risk. The loss given default of an asset or a portfolio is calculated as 1 minus the recovery rate.
While the terms expected loss and unexpected loss are commonly used in risk management, it is important to have a clear understanding of what they actually mean.
In order to understand default risk, we will analyze the its key components: Default arrival, exposure at default, and loss given default.
Default risk can be defined as the risk that the counterparty to a transaction does not honour its obligation. Default could be both in terms on monetary and non-monetary terms, and it's a part of every transaction.
In today`s time, when you start your search for a home loan, you will immediately get multiple offers from various banks claiming to provide you the best offer. What are the criteria for selecting whom to go with?
This is an easy to understand video of how the financial system works.
This video clearly explains the credit crisis in a very interesting manner.
This video will show you how to use the EBIT calculating system to figure out what a company's profit will be before tax and interest.
This video from Ernst & Young talks about the challenges in implementation of IFRS and the differences between IFRS and national GAAPS.
Stacey Tedeschi provides an introduction to IFRS 'International Financial Reporting Standards'.
In this article, we are going to discuss the basic mathematical notion behind Fibonacci theory, and we are going to discuss a basic Fib Strategy that works.
An investment bank is a special type of financial institution that works primarily in higher finance by helping company access the capital markets, such as stock market and bond market, to raise money for expansion or other needs.