The financial strength of Deutsche Bank has been the subject of main stream financial news throughout this year. Analysts have been commenting on the bank’s likelihood of default, its ability to maintain ratings, to make money and increase capital, in light of litigation woes, downsizing,
Basel III Credit Risk – Standardized Approach. The Basel III standard issued by BIS has been up for discussion and debate. BIS issued a first consultative paper on the revisions to the standardized approach to credit risk in December 2014. A second consultative paper was
Potential Future Exposure – PFE – Calculations for an Interest Rate Swap. When it comes to counter party credit risk there are two credit exposure calculation methods that we frequently see in term sheets and internal risk reporting. Pre Settlement Risk Exposure (PSR or PSRE) and
Previously we discussed the creation, perfection and enforcement of security interest in collateral. In this post we will consider the situations where and the manner in which security interest is terminated. We will also consider the disadvantages to the lender of holding on to security interest and collateral after full repayment of debt has been made.
Earlier we discussed the creation and perfection of security interest in collateral. In this post we will look at the methods used for enforcing security interest when a default event or breach of security agreement occurs and how the proceeds recovered from collateral are applied.
Earlier we discussed the creation and perfection of security interest in collateral. It is also important that collateral be properly managed. The post below discusses two elements of collateral management.