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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Characterize the risk exposure(s) of the following FI transactions by choosing one or more of the following:
a. Credit risk
b. Interest rate risk
c. Off-balance-sheet risk
d. Foreign exchange rate risk
e. Country/sovereign risk
f. Technology risk
(1) A bank finances a $10 million, six-year, fixed-rate commercial loan by selling one-year certificates of deposit.
(2) An insurance company invests its policy premiums in a long-term municipal bond portfolio.
(3) A French bank sells two-year fixed-rate notes to finance a two-year fixed-rate loan to a British entrepreneur.
(4) A Japanese bank acquires an Austrian bank to facilitate clearing operations.
(5) A mutual fund completely hedges its interest rate risk exposure using forward contingent contracts.
(6) A bond dealer uses his own equity to buy Mexican debt on the less developed countries (LDC) bond market.
(7) A securities firm sells a package of mortgage loans as mortgage-backed securities.
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