The document discusses risk management topics like measuring market risk through Value at Risk (VaR), liquidity risk, and the collapse of the hedge fund Long Term Capital Management. VaR provides an estimate of potential financial loss within a given confidence level. LTCM experienced huge losses in 1998 due to risks related to leverage, concentration, and breakdowns in their pricing models during market volatility.
Collapse of Long Term Capital Management Dipti Chauhan
This presentation is about the collapse of LTCM. We studied how the collapse happened , strategies used by LTCM, the counter parties involved and who suffered the most. The project also gives some important lessons we learnt from this collapse.
Collapse Of Long Term Management (LTCM)- FIXED INCOME projectSaurabh Mittra
Hedge Fund, Introduction of LONG TERM CAPITAL MANAGEMENT, key members ,FOUNDER OF LTCM, nobel Laureates,strategies used , arbitrage models, rise of LTCM, fall of LTCM, returns of LTCM, fall of LTCM, causes of collapse, Swaps on swaps, Russia defaults, South east Asia crashes, factors affecting LTCM, counterparties of LTCM, LTCM in news, bailout of LTCM, FED intervene, Losers, after story of collapse, relevance to current crises and Causing U.S 2008 crises, lessons learned, types of risk and the references.
Collapse of Long Term Capital Management Dipti Chauhan
This presentation is about the collapse of LTCM. We studied how the collapse happened , strategies used by LTCM, the counter parties involved and who suffered the most. The project also gives some important lessons we learnt from this collapse.
Collapse Of Long Term Management (LTCM)- FIXED INCOME projectSaurabh Mittra
Hedge Fund, Introduction of LONG TERM CAPITAL MANAGEMENT, key members ,FOUNDER OF LTCM, nobel Laureates,strategies used , arbitrage models, rise of LTCM, fall of LTCM, returns of LTCM, fall of LTCM, causes of collapse, Swaps on swaps, Russia defaults, South east Asia crashes, factors affecting LTCM, counterparties of LTCM, LTCM in news, bailout of LTCM, FED intervene, Losers, after story of collapse, relevance to current crises and Causing U.S 2008 crises, lessons learned, types of risk and the references.
I have given this presentation at the Amsterdam Business School, University of Amsterdam. It is a practical introduction for Master students in Financial Markets about the importance of Risk Management and the tools thereof.
This presentation provides a highlight of the key issues in the management of Market Risk. It touches briefly some of the elements of the Basel 2 Accord with respect to Market Risk
Asset Liability Management and Risk Management over laps each other on many grounds, they are the two very important concepts of the study of Financial Systems.
Asset liability management (ALM) can be defined as the comprehensive and dynamic framework for measuring, monitoring and managing the financial risks associated with changing interest rates, foreign exchange rates and other factors that can affect the organisation’s liquidity.
SAPVITS provides the required foundation knowledge mandatory in order to understand and run business processes for the SAP Treasury and Risk Management. We are all provides free demo lectures and 24/7 one demand dedicated server for hands on practice. For more details, contact us:
YouTube URL: https://www.youtube.com/channel/UCSudeN9XjerH4LS-LsGYenQ/videos
Email ID: vits@sapvits.com
Web: http://bit.ly/32U5rWS
IND: +91 8605661100
USA: +1 678 389 8898
UK: +44 141 416 8898
Investment Risk Management
http://www.profitableinvestingtips.com/stock-investing/investment-risk-management
Investment risk management includes diversifying to balance business risk, being wary of overpriced stocks, and not confusing short term goals with long term investing techniques. Picking new winners is always the name of the game but picking them at the best price, diversifying to reduce sector risk, and choosing stocks whose prospects match your long term goals are good ways of managing investment risk.
Business risk is the risk of competition. Effectiveness of management, developing and promoting products, penetrating markets, and doing so in the most cost effective and profitable manner all go into a profitable company. Business risk is also economic risk. Macroeconomic circumstances such as recessions and wars can devastate otherwise thriving businesses. New scientific discoveries or new technologies can likewise create new winners and losers. Diversification helps in managing investment risk. Consumer product companies typically do better during a recession than oil companies. Owning different types of stock in several market sectors will protect you from an isolated market downturn in one sector.
I have given this presentation at the Amsterdam Business School, University of Amsterdam. It is a practical introduction for Master students in Financial Markets about the importance of Risk Management and the tools thereof.
This presentation provides a highlight of the key issues in the management of Market Risk. It touches briefly some of the elements of the Basel 2 Accord with respect to Market Risk
Asset Liability Management and Risk Management over laps each other on many grounds, they are the two very important concepts of the study of Financial Systems.
Asset liability management (ALM) can be defined as the comprehensive and dynamic framework for measuring, monitoring and managing the financial risks associated with changing interest rates, foreign exchange rates and other factors that can affect the organisation’s liquidity.
SAPVITS provides the required foundation knowledge mandatory in order to understand and run business processes for the SAP Treasury and Risk Management. We are all provides free demo lectures and 24/7 one demand dedicated server for hands on practice. For more details, contact us:
YouTube URL: https://www.youtube.com/channel/UCSudeN9XjerH4LS-LsGYenQ/videos
Email ID: vits@sapvits.com
Web: http://bit.ly/32U5rWS
IND: +91 8605661100
USA: +1 678 389 8898
UK: +44 141 416 8898
Investment Risk Management
http://www.profitableinvestingtips.com/stock-investing/investment-risk-management
Investment risk management includes diversifying to balance business risk, being wary of overpriced stocks, and not confusing short term goals with long term investing techniques. Picking new winners is always the name of the game but picking them at the best price, diversifying to reduce sector risk, and choosing stocks whose prospects match your long term goals are good ways of managing investment risk.
Business risk is the risk of competition. Effectiveness of management, developing and promoting products, penetrating markets, and doing so in the most cost effective and profitable manner all go into a profitable company. Business risk is also economic risk. Macroeconomic circumstances such as recessions and wars can devastate otherwise thriving businesses. New scientific discoveries or new technologies can likewise create new winners and losers. Diversification helps in managing investment risk. Consumer product companies typically do better during a recession than oil companies. Owning different types of stock in several market sectors will protect you from an isolated market downturn in one sector.
May 2010 site visit to our new building. It is built on Environmentally Sustainable Design Principles and opens to the public in August 2010.
The building houses the library, Child Health Clinic, large Community Meeting Rooms and the Peppermint Grove Shire Offices. Features include solar panels, thermal maze, storm water reuse, waterless urinals, solar passive orientation, bio filtering and rainwater tanks. Inside will be a cafe, separate children's storytime room, free wifi, public access computers, four large screens with cable TV and video displays, four spaces for presentations with dataprojectors and screens, quiet study area, adaptive technology for people with disabilities, community history space, sustainability information, community education classes and friendly, knowledgable welcoming staff.
Home Prices Up - Unit Sales Down August 2010 vs 2009
The average price for August transactions was $411,012 – up six per cent compared to the average of $387,921 reported in August 2009.
Visit www.OurHomeToronto.com to review actual listing prices and offerings.
Liquidity Crises
A sudden and prolonged evaporation of both market and funding liquidity, with potentially serious consequences for the stability of the financial system and economy.
this is the presentation of graduation paper. since we had given only 10 minutes to speech I was obliged to pass shortly over economic/financial crisis and more focus on financial markets instruments, and suggestions for the future of investment markets. for those who need material I can send my paper work. shahlar.bayramov@gmail.com
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
Buy Verified PayPal Account
Looking to buy verified PayPal accounts? Discover 7 expert tips for safely purchasing a verified PayPal account in 2024. Ensure security and reliability for your transactions.
PayPal Services Features-
🟢 Email Access
🟢 Bank Added
🟢 Card Verified
🟢 Full SSN Provided
🟢 Phone Number Access
🟢 Driving License Copy
🟢 Fasted Delivery
Client Satisfaction is Our First priority. Our services is very appropriate to buy. We assume that the first-rate way to purchase our offerings is to order on the website. If you have any worry in our cooperation usually You can order us on Skype or Telegram.
24/7 Hours Reply/Please Contact
usawebmarketEmail: support@usawebmarket.com
Skype: usawebmarket
Telegram: @usawebmarket
WhatsApp: +1(218) 203-5951
USA WEB MARKET is the Best Verified PayPal, Payoneer, Cash App, Skrill, Neteller, Stripe Account and SEO, SMM Service provider.100%Satisfection granted.100% replacement Granted.
4. value at risk (VaR) (I)
• VAR is the maximum loss over a target horizon
such that there is a low, pre-specified probability
that the actual loss will be larger
• the answer to: 'How much money might I lose?‘
• provides an estimate of the riskiness of a portfolio
based on statistical methodology to quantify
potential financial loss
5. value at risk (VaR) (II)
• the most commonly used measure of market risk
• useful because of its ability to distill a great deal of
information into a single number
• based on probabilities and within parameters set by
the risk manager
• based on one of several different methods
6. value at risk (VaR) (III)
• creates a distribution of potential outcomes at a
specified confidence interval
• confidence intervals are typically 95, 97.5, or 99
percent
• time horizon might be 1 or more days
• largest loss outcome using the confidence level as
the cut-off is the amount reported as value-at risk
• an example using historical data method:
8. portfolio A return distribution
The maximum loss over one day is about $47m at the 95% confidence level
9. VaR examples:
• Q: $3m overnight VAR with 99% confidence level
• A: the loss will be worst than $3m in on average 1
day out of 100
• Q: 95% dialy VaR of $50m
• A: 95 days out of 100 there should be lose no more
than $50 million
10. VaR issues
• VAR does not tell how big the loss might be on the
95th/97th/100th day
• it is based on historical correlations which can break
down in times of market stress
• it is based on statistical assumptions - it is estimation
• VAR can really only be used for marked-to-market
portfolios (revalued every day)
• criticized as unable to forecast real value at risk as
well as its existence encouraged extensive
investment 10
12. liquidity
• liquidity (accounting) - ability of a organization to
pay his debts as and when they fall due
• liquidity (asset) - asset's ability to be sold with
minimum price movement/loss of value
• liquidity risk is underestimated by many
organizations
• loss of liquidity the reason for most bankruptcies or
liquidations in the financial industry
13. liquidity risk
• it is less amenable to formal analysis than traditional
market risk
• there is still no commonly accepted measurement /
solution
• two types of liquidity risk:
– asset liquidity (also called market/product liquidity risk)
– funding liquidity risk (also called cash-flow risk)
• these two types of risk interact with each other
14. asset liquidity risk
• risk of loss due to an inability to sell an asset at
expected value
• asset liquidity to be a crucial factor
• can be managed by setting limits on certain markets
or products and by means of diversification
15. why an asset liquidity issue?
• asset might be too large in relation to the market and
cannot be sold without moving it
• market might be unable to absorb an asset sale of
that size
• asset may be so exotic/complex - attracts few buyers
• asset might not be readily transferable without some
legal effort
• asset might be restricted on convertibility, capital
withdrawal or regulatory approval
16. asset liquidity measurement
• tightness - which is a measure of the divergence between
actual transaction prices
and quoted mid-market prices
depth - which is a measure of the volume of trades possible
without affecting
prices too much (e.g. at the bid/offer prices), and is in contrast
to
resiliency - which is a measure of the speed at which price
fluctuations from trades
are dissipated
• illiquid markets are those where transactions can quickly
affect prices.
17. asset liquidity exercise
• $10,000 cash on bank
account
• 3 month $20,000 deposit
• 100 shares of Apple
• 100 shares of
• 10 US T-bond
• option
• OCT structure
19. funding liquidity risk
• risk of loss due to an inability to fund assets,
payments and other obligations when required
– inability to rollover, or renew, maturing financing when
required
– inability to access new funding when needed
• can be managed by proper
– planning of cash-flow needs
– by setting limits on cash flow gaps
– by having a robust plan in place for raising fresh funds
23. Long term capital management
• Long Term Capital Management fund
• a hedge fund created by Salomon Brothers in 1994
• hired two Nobel prize economist: Myron Scholes and Robert
C. Merton
• using high leverage and complex investment strategies
• has very good returns – on level of 40% annually
23
24. LTCM investment strategies
• fixed-income arbitrage
– inefficiencies in the pricing of bonds
– using derivatives as IRS (interest rate swaps), MBS (mortgage backed
securities) and forwards
• statistical arbitrage
– a heavily quantitative and computational approach to equity trading
– looking for statistical mispricing of one or more assets based on the
expected value of these assets
• pairs trading strategies
– using temporary correlation changes between pair of stocks
• The problem: these strategies brings model risk and short term
volatility risk
24
25. LTCM downturn (I)
• high profits brings huge money from investors interested in its
share
• others start to use similar strategies for investment which
decrease its efficiency
• fund closed for new investors in 1996
• in 1997 huge dividend to remove unmanageable money from
the fund – but without closing
• adequate risk positions
• style drift from original investment methods
25
26. LTCM downturn (II)
• portfolio under pressure of markets after East Asian crisis
(1997)
• returns down to -6,42% in May 1998 and -10,14% in June –
total loss of $461m
• in Aug 1998 Russian financial crisis – default of the
government put pressure on bonds market
• further losses $1,85b which forced liquidation of assets
26
28. LTCM deal loss example
Royal Dutch Shell
• Royall Dutch Shell – dual-listed at Euronext (Royal Dutch) and
LSE (Shell)
• stock price premium of 8-10% observed at Royal Dutch
• $2,3b invested: half in long position at Shell, half in short on
Royal Dutch
• expectation was premium will be gone and 8-10% profit from
Royal Dutch re-purchase collected
• strategy was cut by forced liquidation – Royal Dutch was re-
purchase under 22% premium
• deal created $286m loss
28
29. LTCM downturn (III)
• company has performed a flight-to-liquidity
• Sep 1998 LTCM's equity down from $2.3b to $400m
• total liabilities still over $100 billion
• this translated to an effective leverage ratio of more than
250:1
• due to deals with almos all Wall St big players they there was
move to prevent fund form collapse
29
30. LTCM downturn (IV)
• 23 Sep 1998 Goldman Sachs, AIG and Warren Buffet offered
$200m for acquisition (compared to $4.7b starting capital) -
deal was not done,
• FED organized an bailout and injected $3.65b capital for
operation form consortium of banks
• by 2000 fund was liquidated and and rescuers paid back
• total loss estimated at $4.6b
30
31. LTCM lessons
• failures in:
• 1. Model risk
• 2. Breakdown in historical correlations
• 3. The need for stress-testing
• The value of disclosure 4. and transparency
• 5. The danger of over-generous extension of
• trading credit
• 6. The woes of investing in star quality