What are the consequences of credit bubbles? Introduction There are various consequences that arise from […]
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Mitigating Over-trading
What are the mitigation measures available to a bank to prevent (i) over-trading and (ii) […]
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Correlations & credit portfolio risk
What is the relevance of correlations from a credit portfolio risk management perspective? Correlation is […]
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Country risk in credit portfolio
What do you mean by country risk in the context of a credit portfolio? According […]
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Maturity risk & Liquidity risk.
What is maturity risk? Describe some of the ways in which this risk can be […]
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Systematic risk vs unsystematic risk
What is the difference between systematic and unsystematic risks? Is it true that regulators are […]
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Portfolio Standard deviation
Kadima Corporate and Investment Bank has a portfolio of two loans with a total value […]
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Credit concentration risk
Explain credit concentration risk. What is its relevance for credit portfolio management? BCBS (2006b) suggested […]
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Theoretical value of a share after the rights issue
Zefer Ltd. has faced extreme financial difficulties over the past decade, however, the sales of […]
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Explain loss given default (LGD)
Explain loss given default (LGD), exposure at default (EAD), and Maturity (M). Describe how they […]