about me
game theory
... more
Subscribe Weblog

Banks are exposed to credit risk in all areas of business: loans, letters of credit, guarantees and foreign exchange settlement to name a few. The arrival of credit default swaps in the mid 1990s transformed bank credit portfolio management by allowing banks to lay off the credit risk that, in its raw form, was virtually unsellable.

The very nature of illiquid non-standard credit instruments (and most credit risk fits this definition) means that the instrument itself often cannot be hedged or even sold: it is the credit risk of the instrument that is being hedged. The “liquidity” that is brought by credit derivatives is risk liquidity, not cash liquidity.

Banks tend to specialise in regions, industries and products, and the bulk of their business is often done with a small percentage of their clients. Over time this can produce very lumpy credit portfolios that, before the arrival of credit derivatives, could only be managed (not hedged) by imposing limits and by striving for diversification.

To ban CDS altogether would virtually remove a bank’s ability to manage credit risk; to ban naked shorts would completely remove the ability to find proxy hedges for the huge array of credit risk that cannot be sold or directly hedged. More
Ban will restrict ability to manage credit risk, Financial Times, Letter, Robert Reoch, New College Capital, London
Jhonalex1 meinte am 12. Feb, 11:05:
Good post
You have shared good post about Credit Portfolio Management. I don't know more about credit portfolio before read this post. This is short but have enough content to understand the basic concept of credit portfolio. any how, Actually, i am looking writing service in uk but i fail to find a company where i can get such service according to my demand. any suggestion helpful for me. 
Chris_12121 antwortete am 1. Apr, 09:57:
Great post
Commercial banks take deposits, make loans, issue credit cards. They deal directly with consumers. Your local community bank is a commercial bank. Investment activity is usually pretty basic and part of trust operations. I would not expect sophisticated investment work. Write research paper - Irish Essays 
Intaruka meinte am 6. Apr, 17:33:
Oh Good.
Paket Wisata Bromo Cheap Travel Packages Midnight Bromo with the best facilities and services in East Java for you who want a vacation to Mount Bromo with Exclusivie class Paket Wisata Bromo accommodation you can get only from Paket Wisata Bromo - Bromo Executive - Abadi Tour & Travel is the best tour package provider Paket Wisata Bromo in East Java.

Offerings of Paket Wisata Bromo Bromo Executive Package. Enjoy the beauty of Bromo sunrise is at the core of Bromo tour package or a vacation to Paket Wisata Bromo Mount Bromo. 1 Pananjakan peak called the most fitting place to enjoy Paket Wisata Bromo the panorama of Bromo Tengger Semeru, especially Paket Wisata Bromo the beauty of the rising sun. From Malang or stone can be reached about 2. 5 hours drive from Paket Wisata Bromo Surabaya to when to Bromo need about 3 hours vehicle. Package Price Midnight Paket Wisata Bromo Tour

Just before we give details Paket Wisata Bromo about the facilities and tour package price bromo midnight tour, we will give a little Paket Wisata Bromo explanation about the schedule and program bromo midnight trip or tour packages vacation Paket Wisata Bromo package Bromo sunrise. Bromo tour packages Midnight / Paket Wisata Bromo Sunrise is a holiday program to Bromo most simple because without any need hotel in Bromo including another Paket Wisata Bromo venue eg homestay, inn or villa at Mount Bromo because pickup at 12 am from Paket Wisata Bromo Batu, Malang and Surabaya Paket Wisata Bromo