Download or read book Lessons from the United Kingdom s Liability Driven Investment LDI Crisis written by Ms. Ruo Chen and published by International Monetary Fund. This book was released on 2023-07-13 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper seeks a deeper understanding of the factors that amplified the gilt market turmoil, which ultimately led the Bank of England (BoE) to undertake temporary gilt purchases on financial stability grounds in late September/early October 2022 to restore orderly market conditions and allow Liability Driven Investment (LDI) funds some time to build their capital positions. This paper identifies the key reasons for the success of the BoE’s intervention. This paper also discusses key gaps and policy issues related to monitoring financial stability risks in the broader NBFI sector for individual jurisdictions and international standard-setting bodies.
Download or read book Putting Out the NBFIRE Lessons from the UK s Liability Driven Investment LDI Crisis written by Ms. Ruo Chen and published by International Monetary Fund. This book was released on 2023-09-29 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Liability Driven Investment (LDI) funds were at the center of the severe stress that emerged in the UK gilt market in the aftermath of the September 2022 UK "mini-budget". The episode, which came on the heels of the “Dash for Cash” and “Archegos” stress episodes in the previous two years, highlights underlying vulnerabilities in the large and diverse non-bank financial institution (NBFI) sector. This paper seeks a deeper understanding of the factors that amplified the gilt market turmoil which ultimately led the Bank of England (BoE) to undertake temporary gilt purchases on financial stability grounds in late September/early October 2022 to restore orderly market conditions and enable LDI funds to build their capital positions. With the gilt market stress and the BoE’s purchases now fully unwound, this paper identifies the key reasons for the success of the BoE’s intervention. Then, drawing also on findings of the 2022 UK Financial Sector Assessment Program (FSAP), the paper discusses key gaps and policy issues related to the monitoring of financial stability risks in the broader NBFI sector for both individual jurisdictions and international standard-setting bodies.
Download or read book United Kingdom written by International Monetary Fund. European Dept. and published by International Monetary Fund. This book was released on 2023-07-11 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: United Kingdom: Selected Issues
Download or read book Liability Driven Investment written by Dan Tammas-Hastings and published by John Wiley & Sons. This book was released on 2021-02-22 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt: Understand the investment template that dominates the pension industry Liability-Driven Investment is the practitioner’s guide to this increasingly popular investment template. Already the dominant framework for pension schemes in Europe and the UK, the LDI market is expected to grow significantly with the shift from Defined Benefit to Defined Contribution, and then into Digital Asset Management — or Robo-Advice. With an aging population and significant under-saving globally, more and more finance professionals will need to know how to work within and around the LDI framework; this book provides clear explanations for the framework’s usefulness and growing popularity to help practitioners find their bearings in and around the LDI space. The ultimate goal of LDI is to move beyond simple asset value maximisation and ensure that investors have sufficient funds to pay liabilities. This informative guide digs into that basic premise to show the various mechanisms, guidelines and practices that make up the framework’s “working parts.” Discover the optimal investment strategies in multiple assets classes Understand the key characteristics of the instruments used, including bonds, interest rate derivatives, and inflation linked products Learn why pension companies and individual investors are moving toward LDI Explore the ways in which the explosive growth of Robo-Advice will change retail investment Finance professionals have long been accustomed to shifting landscapes — it is taken as a given that prevailing thought and attendant practices will change over time — but the rapid expansion of LDI has taken many by surprise. Having already been established as the dominant framework for pensions, it is clear that the emphasis on LDI will only continue to grow. Liability-Driven Investment tells you what you need to know in order to work effectively with LDI.
Download or read book The Impact of Derivatives Collateralization on Liquidity Risk Evidence from the Investment Fund Sector written by Audrius Jukonis and published by International Monetary Fund. This book was released on 2024-02-09 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Stricter derivative margin requirements have increased the demand for liquid collateral, but euro area investment funds, which use derivatives extensively, have been reducing their liquid asset holdings. Using transaction-by-transaction derivatives data, we assess whether the current levels of funds’ holdings of cash and other highly liquid assets would be adequate to meet funds’ liquidity needs to cover variation margin calls on derivatives under a range of stress scenarios. The estimates indicate that between 13 percent and 33 percent of euro area funds with sizeable derivatives exposures may not have sufficient liquidity buffers to meet the calls under adverse market shocks. As a result, they are likely to redeem money market fund (MMF) shares, procyclically sell assets, and draw on credit lines, thus amplifying the market dynamics under such stress scenarios. Our findings highlight the importance of further work to assess the potential role of macroprudential policies for nonbanks, particularly regarding liquidity risk in funds.
Download or read book Governance and Investment of Public Pension Assets written by Sudhir Rajkumar and published by World Bank Publications. This book was released on 2011 with total page 364 pages. Available in PDF, EPUB and Kindle. Book excerpt: And key messages -- Key principles of governance and investment management -- Governance of public pension assets -- Governance structures and accountabilities -- Qualification, selection, and operation of governing bodies -- Operational policies and procedures -- Managing fiscal pressures in defined-benefit schemes -- Policy responses to turbulent financial markets -- Investment of public pension assets -- Defining the investment policy framework for public pension funds -- Managing risk for different cohorts in defined-contribution schemes -- An asset-liability approach to strategic asset allocation for pension funds -- In-house investment versus outsourcing to external investment managers -- International investments and managing the resulting currency risk -- Alternative asset classes and new investment themes.
Download or read book Fiscal R Star Fiscal Monetary Tensions and Implications for Policy written by Marijn A. Bolhuis and published by International Monetary Fund. This book was released on 2024-08-09 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the Global Financial Crisis, fiscal policy in advanced economies has become more “active” – that is, increasingly unresponsive to rising debt levels. This paper explores tensions between active fiscal and monetary policies by introducing the concept of “fiscal r-star,” which is the real interest rate required to stabilize debt levels when the primary balance is set exogenously, output is growing at potential, and inflation is at target. It is proposed that the difference between monetary r-star and fiscal r-star—referred to as the “fiscal monetary gap”—is a proxy for fiscal-monetary policy tensions. An analysis of over 140 years of data from 16 advanced economies shows that larger fiscal-monetary gaps are associated with rising debt levels, higher inflation, financial repression, lower real returns on bonds and cash, with elevated risks of future debt, inflation, currency, housing, and systemic crises. Current estimates indicate that fiscal-monetary tensions are at historic highs. Given the tepid growth outlook, growth-enhancing reforms and fiscal consolidation, among other policy adjustments, may be needed to attenuate fiscal-monetary tensions over time.
Download or read book Professional Perspectives on Banking and Finance written by Moorad Choudhry and published by Emerald Group Publishing. This book was released on 2024-06-12 with total page 223 pages. Available in PDF, EPUB and Kindle. Book excerpt: With 100% emphasis on accessible, clear, and applicable advice Professional Perspectives on Banking and Finance provides suggestions to instil best practice in any commercial bank.
Download or read book Growing Old written by Richard Herring and published by Brookings Institution Press. This book was released on 2011 with total page 162 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a book that looks at examples from both the United States and around the world, the authors dissect several key issues haunting pensions and retirement.
Download or read book BlackRock s Guide to Fixed Income Risk Management written by BlackRock, Inc. and published by John Wiley & Sons. This book was released on 2023-10-31 with total page 455 pages. Available in PDF, EPUB and Kindle. Book excerpt: An irreplaceable roadmap to modern risk management from renowned experts on the subject Edited by a co-founder and the former Chief Risk Officer of BlackRock—the world’s largest asset manager—BlackRock’s Guide to Fixed-Income Risk Management delivers an insightful blueprint to the implementation of a comprehensive investment risk management framework for buy-side firms. Leveraging the unprecedented academic and professional experience of current and former senior leaders in BlackRock’s risk and portfolio management functions, as well as trading, financial modeling, and analytics experts, the book serves a practitioner’s guide to investment risk management, leveraging BlackRock’s risk management framework. The included chapters combine to provide chief investment officers, risk managers, portfolio managers, researchers, and compliance professionals an approach to investment risk management well-suited for today's and tomorrow's markets. The book also presents: Critical elements that underpin a strong risk management program and culture Fixed income risk management concepts and theories that can be applied to other asset classes Lessons learned from financial crises and the COVID-19 Pandemic Ideal for undergraduate students and students and scholars of business, finance, and risk management, BlackRock’s Guide to Fixed-Income Risk Management is a one-of-a-kind combination of modern theory with proven, practical risk management strategies.
Download or read book The Liquidation of Government Debt written by Ms.Carmen Reinhart and published by International Monetary Fund. This book was released on 2015-01-21 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: High public debt often produces the drama of default and restructuring. But debt is also reduced through financial repression, a tax on bondholders and savers via negative or belowmarket real interest rates. After WWII, capital controls and regulatory restrictions created a captive audience for government debt, limiting tax-base erosion. Financial repression is most successful in liquidating debt when accompanied by inflation. For the advanced economies, real interest rates were negative 1⁄2 of the time during 1945–1980. Average annual interest expense savings for a 12—country sample range from about 1 to 5 percent of GDP for the full 1945–1980 period. We suggest that, once again, financial repression may be part of the toolkit deployed to cope with the most recent surge in public debt in advanced economies.
Download or read book How I Became a Quant written by Richard R. Lindsey and published by John Wiley & Sons. This book was released on 2011-01-11 with total page 406 pages. Available in PDF, EPUB and Kindle. Book excerpt: Praise for How I Became a Quant "Led by two top-notch quants, Richard R. Lindsey and Barry Schachter, How I Became a Quant details the quirky world of quantitative analysis through stories told by some of today's most successful quants. For anyone who might have thought otherwise, there are engaging personalities behind all that number crunching!" --Ira Kawaller, Kawaller & Co. and the Kawaller Fund "A fun and fascinating read. This book tells the story of how academics, physicists, mathematicians, and other scientists became professional investors managing billions." --David A. Krell, President and CEO, International Securities Exchange "How I Became a Quant should be must reading for all students with a quantitative aptitude. It provides fascinating examples of the dynamic career opportunities potentially open to anyone with the skills and passion for quantitative analysis." --Roy D. Henriksson, Chief Investment Officer, Advanced Portfolio Management "Quants"--those who design and implement mathematical models for the pricing of derivatives, assessment of risk, or prediction of market movements--are the backbone of today's investment industry. As the greater volatility of current financial markets has driven investors to seek shelter from increasing uncertainty, the quant revolution has given people the opportunity to avoid unwanted financial risk by literally trading it away, or more specifically, paying someone else to take on the unwanted risk. How I Became a Quant reveals the faces behind the quant revolution, offering you?the?chance to learn firsthand what it's like to be a?quant today. In this fascinating collection of Wall Street war stories, more than two dozen quants detail their roots, roles, and contributions, explaining what they do and how they do it, as well as outlining the sometimes unexpected paths they have followed from the halls of academia to the front lines of an investment revolution.
Download or read book Measuring Vulnerability to Natural Hazards written by Birkmann and published by The Energy and Resources Institute (TERI). This book was released on 2007-01-01 with total page 582 pages. Available in PDF, EPUB and Kindle. Book excerpt: Measuring Vulnerability to Natural Hazards presents a broad range of current approaches to measuring vulnerability. It provides a comprehensive overview of different concepts at the global, regional, national, and local levels, and explores various schools of thought. More than 40 distinguished academics and practitioners analyse quantitative and qualitative approaches, and examine their strengths and limitations. This book contains concrete experiences and examples from Africa, Asia, the Americas and Europe to illustrate the theoretical analyses.The authors provide answers to some of the key questions on how to measure vulnerability and they draw attention to issues with insufficient coverage, such as the environmental and institutional dimensions of vulnerability and methods to combine different methodologies.This book is a unique compilation of state-of-the-art vulnerability assessment and is essential reading for academics, students, policy makers, practitioners, and anybody else interested in understanding the fundamentals of measuring vulnerability. It is a critical review that provides important conclusions which can serve as an orientation for future research towards more disaster resilient communities.
Download or read book Structured Finance in Latin America written by Hela Cheikhrouhou and published by World Bank Publications. This book was released on 2007 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt: Structured Finance in Latin America explores how structured finance mechanisms can channel pension savings to support projects in underserved sectors, deepen capital markets, and contribute to investment and economic growth. Private pension funds have been accumulating assets rapidly in the wake of pension system reforms in many Latin American countries. Strict investment regulations to protect workers' savings have limited their investment in highly creditworthy domestic securities, yet pension fund demand for new securities has outstripped issuance of eligible traditional corporate debt instruments. This has contributed to a high concentration of pension fund assets in public debt. Innovative structured finance mechanisms can help bring to the market a new set of creditworthy securities backed by pools of loans to small borrowers, mortgage loans or the expected proceeds of large infrastructure projects. These mechanisms create new investment opportunities for pension funds, while establishing additional sources of funding for underserved market segments. Policy makers and regulatory authorities have a catalytic role to play in the development of structured finance securities by establishing a conducive legal, regulatory, and tax framework. Structured Finance in Latin America serves as a practical guide for development practitioners, policy makers, and others working in government, international or nongovernmental organizations, and financial institutions, who focus on finance and investment; infrastructure, transport, and urban development; housing finance; small and medium-sized enterprise development; and pension reform.
Download or read book Goal based Investing Theory And Practice written by Romain Deguest and published by World Scientific. This book was released on 2021-07-13 with total page 324 pages. Available in PDF, EPUB and Kindle. Book excerpt: Goal-based investing is a new paradigm that is expected to have a profound and long-lasting impact on the wealth management industry. This book presents the concept in detail and introduces a general operational framework that can be used by financial advisors to help individual investors optimally allocate their wealth by identifying performance-seeking assets and hedging assets. Grounded in the principles of asset pricing and portfolio optimisation, the goal-based investing approach leads to the design of investment solutions that truly respond to investors' problems, which can most often be summarized as follows: secure essential goals with the highest confidence level and maximize the chances to reach aspirational goals.A series of case studies guides the reader through the implementation of goal-based investing, illustrates the efficiency of this paradigm and explains how one can accommodate a variety of implementation features such as taxes, short-sales constraints, parameter estimation risk, as well as limited customisation.
Download or read book Renewable and Efficient Electric Power Systems written by Gilbert M. Masters and published by John Wiley & Sons. This book was released on 2005-01-03 with total page 676 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a comprehensive textbook for the new trend of distributed power generation systems and renewable energy sources in electric power systems. It covers the complete range of topics from fundamental concepts to major technologies as well as advanced topics for power consumers. An Instructor's Manual presenting detailed solutions to all the problems in the book is available from the Wiley editorial department -- to obtain the manual, send an email to [email protected]
Download or read book Investing in Cultural Diversity and Intercultural Dialogue written by Unesco and published by UNESCO. This book was released on 2009-01-01 with total page 418 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report analyses all aspects of cultural diversity, which has emerged as a key concern of the international community in recent decades, and maps out new approaches to monitoring and shaping the changes that are taking place. It highlights, in particular, the interrelated challenges of cultural diversity and intercultural dialogue and the way in which strong homogenizing forces are matched by persistent diversifying trends. The report proposes a series of ten policy-oriented recommendations, to the attention of States, intergovernmental and non-governmental organizations, international and regional bodies, national institutions and the private sector on how to invest in cultural diversity. Emphasizing the importance of cultural diversity in different areas (languages, education, communication and new media development, and creativity and the marketplace) based on data and examples collected from around the world, the report is also intended for the general public. It proposes a coherent vision of cultural diversity and clarifies how, far from being a threat, it can become beneficial to the action of the international community.
