Ebook137 pages3 hours
Risk-Adjusted Lending Conditions: An Option Pricing Approach
Rating: 0 out of 5 stars
()
About this ebook
In order to operate their lending business profitably, banks must know all the costs involved in granting loans. In particular, all the expenses they incur in covering losses must be included. Provided loan risks can be calculated, it is possible in each case to charge a price that is appropriately adjusted for risk, thus making it possible to make high-risk loans.
In "Risk-adjusted Lending Conditions" the author presents a model, to measure and calculate loan risks, showing how it functions and how it may be applied. His approach has its origins in the ideas put forward by Black/Scholes in 1973, and thus owes much to option price theory. From this the author has succeeded in developing a solution such that, whatever a company's debt position and however its balance sheet may be structured, any situation can be individually assessed. Building on this, he demonstrates how combinations of loans with the lowest possible interest costs can be tailor-made for any company. The book contains numerous examples, making it easy for practising bankers to see how the model may be applied
In "Risk-adjusted Lending Conditions" the author presents a model, to measure and calculate loan risks, showing how it functions and how it may be applied. His approach has its origins in the ideas put forward by Black/Scholes in 1973, and thus owes much to option price theory. From this the author has succeeded in developing a solution such that, whatever a company's debt position and however its balance sheet may be structured, any situation can be individually assessed. Building on this, he demonstrates how combinations of loans with the lowest possible interest costs can be tailor-made for any company. The book contains numerous examples, making it easy for practising bankers to see how the model may be applied
Related to Risk-Adjusted Lending Conditions
Titles in the series (100)
Risk Quantification: Management, Diagnosis and Hedging Rating: 0 out of 5 stars0 ratingsFinancial Engineering with Finite Elements Rating: 0 out of 5 stars0 ratingsThe Future of Banking: In a Globalised World Rating: 0 out of 5 stars0 ratingsThe Fundamentals of Hedge Fund Management: How to Successfully Launch and Operate a Hedge Fund Rating: 0 out of 5 stars0 ratingsEquity Valuation: Models from Leading Investment Banks Rating: 0 out of 5 stars0 ratingsProperty Derivatives: Pricing, Hedging and Applications Rating: 0 out of 5 stars0 ratingsCredit Risk Modeling using Excel and VBA Rating: 3 out of 5 stars3/5Understanding Islamic Finance Rating: 5 out of 5 stars5/5Advanced Modelling in Finance using Excel and VBA Rating: 3 out of 5 stars3/5Exotic Options and Hybrids: A Guide to Structuring, Pricing and Trading Rating: 4 out of 5 stars4/5An Arbitrage Guide to Financial Markets Rating: 0 out of 5 stars0 ratingsRumors in Financial Markets: Insights into Behavioral Finance Rating: 0 out of 5 stars0 ratingsThe LIBOR Market Model in Practice Rating: 0 out of 5 stars0 ratingsFinancial Modelling in Python Rating: 3 out of 5 stars3/5Introduction to Private Equity Rating: 0 out of 5 stars0 ratingsModeling and Forecasting Electricity Loads and Prices: A Statistical Approach Rating: 0 out of 5 stars0 ratingsStochastic Claims Reserving Methods in Insurance Rating: 3 out of 5 stars3/5The Handbook of Insurance-Linked Securities Rating: 3 out of 5 stars3/5Macrofinancial Risk Analysis Rating: 0 out of 5 stars0 ratingsRisk Management in Commodity Markets: From Shipping to Agriculturals and Energy Rating: 0 out of 5 stars0 ratingsPlumbers and Visionaries: Securities Settlement and Europe's Financial Market Rating: 0 out of 5 stars0 ratingsMeasuring Operational and Reputational Risk: A Practitioner's Approach Rating: 5 out of 5 stars5/5Structured Finance: The Object Oriented Approach Rating: 0 out of 5 stars0 ratingsAn Introduction to International Capital Markets: Products, Strategies, Participants Rating: 0 out of 5 stars0 ratingsCredit Derivatives: Trading, Investing, and Risk Management Rating: 0 out of 5 stars0 ratingsFinancial Applications using Excel Add-in Development in C / C++ Rating: 0 out of 5 stars0 ratingsMulti-moment Asset Allocation and Pricing Models Rating: 0 out of 5 stars0 ratingsThe Trade Lifecycle: Behind the Scenes of the Trading Process Rating: 3 out of 5 stars3/5Fourier Transform Methods in Finance Rating: 0 out of 5 stars0 ratingsDerivatives Demystified: A Step-by-Step Guide to Forwards, Futures, Swaps and Options Rating: 3 out of 5 stars3/5
Related ebooks
Volatility and Correlation: The Perfect Hedger and the Fox Rating: 4 out of 5 stars4/5The Future of Investing: In Europe's Markets after MiFID Rating: 0 out of 5 stars0 ratingsUnderstanding International Bank Risk Rating: 0 out of 5 stars0 ratingsAsset and Risk Management: Risk Oriented Finance Rating: 0 out of 5 stars0 ratingsHedge Funds Of Funds: A Guide for Investors Rating: 0 out of 5 stars0 ratingsHandbook of Asset and Liability Management: From Models to Optimal Return Strategies Rating: 0 out of 5 stars0 ratingsApplied Quantitative Methods for Trading and Investment Rating: 4 out of 5 stars4/5Strategic Asset Allocation in Fixed Income Markets: A Matlab Based User's Guide Rating: 0 out of 5 stars0 ratingsInvestment Guarantees: Modeling and Risk Management for Equity-Linked Life Insurance Rating: 3 out of 5 stars3/5Operational Risk Toward Basel III: Best Practices and Issues in Modeling, Management, and Regulation Rating: 0 out of 5 stars0 ratingsMarket Risk Analysis, Practical Financial Econometrics Rating: 0 out of 5 stars0 ratingsCredit Risk Frontiers: Subprime Crisis, Pricing and Hedging, CVA, MBS, Ratings, and Liquidity Rating: 0 out of 5 stars0 ratingsThe Liquidity Theory of Asset Prices Rating: 5 out of 5 stars5/5Copula Methods in Finance Rating: 0 out of 5 stars0 ratingsProperty Derivatives: Pricing, Hedging and Applications Rating: 0 out of 5 stars0 ratingsStochastic Claims Reserving Methods in Insurance Rating: 3 out of 5 stars3/5Alternative Risk Transfer: Integrated Risk Management through Insurance, Reinsurance, and the Capital Markets Rating: 0 out of 5 stars0 ratingsThe Mathematics of Banking and Finance Rating: 0 out of 5 stars0 ratingsLoan Workouts and Debt for Equity Swaps: A Framework for Successful Corporate Rescues Rating: 5 out of 5 stars5/5Credit Securitisations and Derivatives: Challenges for the Global Markets Rating: 0 out of 5 stars0 ratingsAn Introduction to the Bond Markets Rating: 0 out of 5 stars0 ratingsOperational Risk with Excel and VBA: Applied Statistical Methods for Risk Management, + Website Rating: 3 out of 5 stars3/5Risk Management Technology in Financial Services: Risk Control, Stress Testing, Models, and IT Systems and Structures Rating: 0 out of 5 stars0 ratingsOperational Risk: Modeling Analytics Rating: 0 out of 5 stars0 ratingsMathematical Techniques in Finance: An Introduction Rating: 0 out of 5 stars0 ratingsMarket Risk Management for Hedge Funds: Foundations of the Style and Implicit Value-at-Risk Rating: 0 out of 5 stars0 ratingsAdvanced Credit Risk Analysis and Management Rating: 0 out of 5 stars0 ratingsCurrency Strategy: The Practitioner's Guide to Currency Investing, Hedging and Forecasting Rating: 0 out of 5 stars0 ratingsCredit Models and the Crisis: A Journey into CDOs, Copulas, Correlations and Dynamic Models Rating: 0 out of 5 stars0 ratingsHedge Fund Modelling and Analysis using MATLAB Rating: 0 out of 5 stars0 ratings
Finance & Money Management For You
Capitalism and Freedom Rating: 4 out of 5 stars4/5The Psychology of Money: Timeless lessons on wealth, greed, and happiness Rating: 5 out of 5 stars5/5The Intelligent Investor, Rev. Ed: The Definitive Book on Value Investing Rating: 4 out of 5 stars4/5Just Keep Buying: Proven ways to save money and build your wealth Rating: 5 out of 5 stars5/5The Richest Man in Babylon Rating: 4 out of 5 stars4/5Set for Life: An All-Out Approach to Early Financial Freedom Rating: 4 out of 5 stars4/5Financial Words You Should Know: Over 1,000 Essential Investment, Accounting, Real Estate, and Tax Words Rating: 4 out of 5 stars4/5The Great Reset: And the War for the World Rating: 4 out of 5 stars4/5Good to Great: Why Some Companies Make the Leap...And Others Don't Rating: 4 out of 5 stars4/5The 7 Habits of Highly Effective People: 15th Anniversary Infographics Edition Rating: 5 out of 5 stars5/5Principles: Life and Work Rating: 4 out of 5 stars4/5The Tax and Legal Playbook: Game-Changing Solutions To Your Small Business Questions Rating: 3 out of 5 stars3/5The Book on Advanced Tax Strategies: Cracking the Code for Savvy Real Estate Investors Rating: 4 out of 5 stars4/5Buy, Rehab, Rent, Refinance, Repeat: The BRRRR Rental Property Investment Strategy Made Simple Rating: 5 out of 5 stars5/5The Great Awakening: Defeating the Globalists and Launching the Next Great Renaissance Rating: 4 out of 5 stars4/5How to Make Money in Stocks: A Winning System in Good Times and Bad, Fourth Edition Rating: 5 out of 5 stars5/5The Total Money Makeover by Dave Ramsey: Summary and Analysis Rating: 4 out of 5 stars4/5Strategy Skills: Techniques to Sharpen the Mind of the Strategist Rating: 4 out of 5 stars4/5Quiet Leadership: Six Steps to Transforming Performance at Work Rating: 4 out of 5 stars4/5Wealthology: The Science of Smashing Money Blocks Rating: 3 out of 5 stars3/5The Freedom Shortcut: How Anyone Can Generate True Passive Income Online, Escape the 9-5, and Live Anywhere Rating: 5 out of 5 stars5/5All Your Worth: The Ultimate Lifetime Money Plan Rating: 5 out of 5 stars5/5Built to Last: Successful Habits of Visionary Companies Rating: 4 out of 5 stars4/5
Reviews for Risk-Adjusted Lending Conditions
Rating: 0 out of 5 stars
0 ratings
0 ratings0 reviews
Book preview
Risk-Adjusted Lending Conditions - Werner Rosenberger
Enjoying the preview?
Page 1 of 1