The Knockout Putable Advance: "Set it and forget it!"
by Brett L.A. Manning, CFA
During these hectic days of credit turmoil, nobody needs any extra aggravation—particularly
when you can simplify your funding needs and do so at attractive levels. But here’s
the dilemma: Do you roll your funding short and take advantage of historically low
short-term rates, or do you take some funding risk off the table and extend out
the curve, again at historically low levels? More >
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Managing Liquidity Risk in a Near-Zero Environment
by Jeffrey F. Caughron
The regulatory authorities have made clear their intention to highlight liquidity
risk management as a point of focus in the wake of financial market turmoil. The
FDIC states that “Recent disruptions in the credit and capital markets have exposed
weaknesses in liquidity risk measurement and management systems.”
In the new market environment where deflation is a threat and
near-zero fed funds are the policy, how should banks view liquidity risk and what
strategies should they pursue? More > |
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