The risk of investment products : from product innovation to risk compliance / editor, Michael C.S. Wong.

Format:

Book

Contributor:

Wong, Michael C. S. (Michael Chak Sham)

Language:

English

Subjects (All):

Investments.

Securities.

Risk management.

Physical Description:

1 online resource (267 p.)

Edition:

1st ed.

Place of Publication:

Singapore : Hackensack, N.J. : World Scientific, c2011.

Language Note:

English

Summary:

In the aftermath of the financial crisis of 2008, many financial institutions have been exploring new methods to measure investment product risk. Lawmakers have been developing new rules that protect investors better than before. The purpose is to mitigate the risk of financial institutions that distribute investment products to their clients. This book presents professional views on investment product risk and analyzes complex investment product risk from various perspectives. Contributed by lawyers, risk managers, IT engineers and scholars, this book is an essential-read for financial regula

Contents:

Foreword; 1. INTRODUCTION; 2. PRODUCT RISK AS THE RISK OF BANKS; 3. MISREPRESENTATION OF INVESTMENT PRODUCTS; 4. THE ISSUE OF DUTY OF CARE; 5. COMPLEXITY OF INVESTMENT PRODUCTS; 6. STRESS RISK; CONTRIBUTORS TO THE BOOK; CONTENTS; 1. Bank Risk Management in Emerging Markets after the Enhanced Basel Rules; 1. INTRODUCTION; 2. IMPLICATIONS OF THE CURRENT BANKING CRISIS FOR THE EMERGING MARKET BANKING SECTOR; Financial Crises and Risk Management; Was Basel II Inadequate?; The Case of the Turkish Banking Sector: Strong Throughout the Crisis; 3. IMPLEMENTATION OF ENHANCED BASEL RULES

4. RISK MEASUREMENT OF FINANCIAL INSTRUMENTS IN TRADING AND BANKING BOOKS Critical Issues in Market Risk Assessment; 5. MODEL RISK IN PORTFOLIO MANAGEMENT; 6. CONCLUSION: REGULATORY CAPITAL VERSUS ECONOMIC CAPITAL; REFERENCES; 2. Product VaR Modelling; 1. DEFINITION AND CLASSIFICATION OF INVESTMENT PRODUCTS; 2. VALUATION OF INVESTMENT PRODUCTS; Illustration; 3. SENSITIVITY ANALYSIS; Duration; Necessity of Modified Duration; Equity Beta (β); 4. PROBLEM OF AGGREGATION AND EMERGENCE OF VALUE-AT-RISK; 5. DEFINITION AND MEASURE OF VaR; Delta Normal Method; Simulation Method; Historical Method

6. NEED FOR EXTREME TAIL LOSSES (ETL)REFERENCES; 3. Is It All About Disclosure? Regulating Structured Financial Products After the Lehman Brothers Minibonds Saga; 1. INTRODUCTION; 2. WHAT ARE LEHMAN MINIBONDS? STRUCTURE, NATURE AND INHERENT RISKS; 3. MIS-SELLING PRACTICES UNDER STATUTORY AND COMMON LAW RULES; Regulatory Framework and Statutory Rules; Common Law Rules; 4. REGULATING STRUCTURED FINANCIAL PRODUCTS: SOME "MINI" REGULATORY OPTIONS; Why Full Disclosure of Minibonds is Insufficient; How Can the Disclosure Regime be Improved Given the Increasing Complexity?

Gatekeeper Theory and Credit Ratings Restoring the Freedom of Contract Doctrine in Financial Transactions?; 5. THE WAY FORWARD: SOME PRELIMINARY CONCLUSIONS; 4. Regulation of Over-The-Counter Derivatives in Australia; 1. INTRODUCTION; 2. DERIVATIVES IN THE NEWS; 3. INTRODUCTION TO REGULATION OF OTC DERIVATIVES IN AUSTRALIA; 4. OTC DERIVATIVES AND THE GLOBAL FINANCIAL CRISIS: PROPOSALS FOR NEW REGULATION; 5. ANY LESSONS FOR AUSTRALIA FROM THE US ON THE REGULATION OF OTC DERIVATIVES?; 6. REGULATION OF OTC DERIVATIVES IN AUSTRALIA; OTC Self-regulation: AFMA/ISDA; Australian Market Licence (AML)

Exempt Financial Markets Australian Financial Services Licence; Clearing House; Market Misconduct; Common Law; Prudential Regulation: Capital Requirements and Risk Management; 7. OTCs IN AUSTRALIA DURING THE GLOBAL FINANCIAL CRISIS; 5. Credit Derivatives: Understanding Their Characteristics and Risk Potential; 1. INTRODUCTION; 2. COLLATERALIZED DEBT OBLIGATIONS: IMPROVING THE YIELD FROM DEBT SECURITIES; Balance-Sheet CDO: An Outline; Return Model and Pricing; Credit Risk Assessment, "Tranching" and Credit Rating; 3. CREDIT DEFAULT SWAPS: "BULLETPROOFING" CDO

4. SYNTHETIC CDOs AND RISK COVER UNDER CDSs

Notes:

Description based upon print version of record.

Includes bibliographical references and index.

ISBN:

9786613433862

9781283433860

1283433869

9789814354998

9814354996

OCLC:

775360871