Sovereign Credit Worthiness and Financial Stability von Edu Pristine

Dozent des Vortrages Sovereign Credit Worthiness and Financial Stability

Edu Pristine

Trusted by Fortune 500 Companies and 10,000 Students from 40+ countries across the globe, EduPristine is one of the leading International Training providers for Finance Certifications like FRM®, CFA®, PRM®, Business Analytics, HR Analytics, Financial Modeling, Operational Risk Modeling etc. It was founded by industry professionals who have worked in the area of investment banking and private equity in organizations such as Goldman Sachs, Crisil - A Standard & Poors Company, Standard Chartered and Accenture.

EduPristine has conducted corporate training for various leading corporations and colleges like JP Morgan, Bank of America, Ernst & Young, Accenture, HSBC, IIM C, NUS Singapore etc. EduPristine has conducted more than 500,000 man-hours of quality training in finance.
http://www.edupristine.com

Kundenrezensionen

Auszüge aus dem Begleitmaterial

... As a result, financial institutions entered the crisis undercapitalized, highly leveraged, and with huge maturity and currency balance sheet mismatches. Sovereigns did not build adequate fiscal buffers during the boom prior to the crisis. ...

... This shrinks the credit supply that further dampens the economic activity which, in turn, leads to a decline in tax revenues and a rise in government expenditure. Thus, the fiscal deficit rises and the creditworthiness of the sovereign deteriorates. ...

... Thus, holdings of domestic government bonds as a percentage of bank capital tend to be higher in countries with high public debt. ...

... and equity investors cheered the increasing profits and expanding economy despite ever increasing leverage in the system. Complacency led to a build up of vulnerabilities in the system. Global financial integration played a significant role in facilitating this leveraging process. ...

... The expansionary phase of the business cycle boosted the public sector's accounts over and above the cyclically adjusted levels. ...

... But initially, as data on bond yields and CDS spreads suggest, investors worried mainly about the financial institutions and little about the sovereign creditworthiness. ...

... Investors became much more aware of the possible risk transfer between banks and sovereigns. Thus, bank and sovereign CDS spreads became much more positively correlated with each other. ...

... Portugal and Spain fell from EUR 568 billion at the end of the third quarter of 2009 to EUR 335 billion at the end of the second quarter of 2011 – a 41% decline. ...

... large amounts of domestic debt (in some cases, exceeding 100% of their Tier I capital). ...

...Integration of global financial system requires prudence in policymaking. Task for policymakers – to restore the risk - free status of sovereigns and command the confidence of the market participants. ...