Monthly Archives: June 2011

CDS Norms: A Significant Step Forward

Professor Viral Acharya on CDS regulation in India. The Reserve Bank of India (RBI) has recently released guidelines for trading in credit default swaps (CDS) on corporate bonds. Such “single-name” CDS contracts have become an important part of credit markets … Continue reading

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Will Money Funds Spread Greek Tragedy?

Professor Viral Acharya comments on how Greece’s economic problems will affect money market funds. The odds say no, thanks to official support for Greece and the European banks that look most apt to suffer in a default. Yet it’s clear … Continue reading

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Final Battle for the Euro Will be Fought on Italy’s Shores

Professor Edward Altman says overall credit risk metric places Italy among the riskiest private corporate sectors. For more than two years, we have witnessed the economic demise of certain European countries. This soon led to the financial community systematically assessing … Continue reading

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Event: “Mortgage Finance Reform through the Prism of Credit Risk Management”

This event features Professor Viral Acharya’s presentation on the housing finance reform. Motivated from economic theory, Viral argues that a sustainable mortgage finance system should be primarily private in nature; the credit risk underlying the mortgages should be born by … Continue reading

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Stocks Under $5 at Risk of Bankruptcy

The Z-Score, developed by Prof. Edward Altman as a tool for determining a company’s risk of bankruptcy, is featured. Small-cap stocks have enjoyed a tremendous rally since the March 2009 low, although the recent losing streak for equity markets has … Continue reading

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