Monthly Archives: March 2013

14th century: The Crash of Peruzzi and the Bardi family in 1345

The Crash of the European Financial System in 1345 Florentine banking family. By 1310 they were the wealthiest family in Florence. They and the other two leading family banks, the Peruzzi and the Acciaiuoli, maintained branches at locations stretching from England and the Netherlands to North Africa and the Middle East. The company’s basic operating capital belonged to the […]

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Crises of the Third Century

source: wikipedia The Crisis of the Third Century (also “Military Anarchy” or “Imperial Crisis”) (AD 235–284) was a period in which theRoman Empire nearly collapsed under the combined pressures of invasion, civil war,plague, and economic depression. The Crisis began with theassassination of Emperor Alexander Severus at the hands of his own troops. By 258–260, the Empire split into three competing states: the Gallic Empire, including the Roman […]

Economic liberalism

Economic liberalism, also known as fiscal liberalism, is the ideological belief in organizing the economy on individualist lines, meaning that the greatest possible number of economic decisions are made by individuals and not by collective institutions or organizations.[1] It includes a spectrum of different economic policies, but it is always based on strong support for […]

Wikipedia contents: Economics/Financial markets/Banking/Corporate finance/Personal finance/Public finance

  Economics Economies by country General classifications Microeconomics Macroeconomics History of economic thought Methodology Heterodox approaches Technical methods Mathematical Econometrics Experimental National accounting Fields and subfields Behavioral Cultural Evolutionary Growth Development History International Economic systems Monetary and Financial economics Public and Welfare economics Health Education Welfare Population Labour Personnel Managerial Computational Business Information Game theory Industrial organization Law Agricultural […]

Quantitative easing

Quantitative easing (QE) is an unconventional monetary policy used by central banks to stimulate the national economy when monetary policy has become ineffective. A central bank implements quantitative easing by buying financial assets from commercial banks and other private institutions, thus creating money and injecting a pre-determined quantity of money into the economy. This is […]

Fund Management: Pension pots, portfolios and the art of long-term investment

As a fund manager, you manage a portfolio as an investor.We don’t have to persuade people to do things; we do things ourselves. We are investors rather than advisors. Mark Burgess, Chief investment officer THREADNEEDLE

Tax burdens on labour income in OECD countries continue to rise

  26/03/2013 – New data show that across OECD countries the average tax and social security burden on employment incomes increased by 0.1 of a percentage point to 35.6 per cent in 2012.  It increased in 19 out of 34 countries, fell in 14,  and remained unchanged in  1.   The increases were largest in […]

Global economy is improving but Europe lags behind, says OECD

Global economy is improving but Europe lags behind, says OECD 28/03/2013 – Global economic activity is picking up, but the continuing crisis in the euro area is delaying a meaningful recovery, the OECD said in its latest Interim Economic Assessment. The Assessment, presented in Paris by Chief Economist Pier Carlo Padoan, says that the G7 […]

S&P upgrades Turkey’s credit rating – Invest in Turkey

  Zaman – Credit rating agency Standard&Poor’s (S&P) has raised Turkey’s sovereign credit rating to ‘BB+’, up from ‘BB’, one notch below the investment grade. The statement from S&P on the rating upgrade said that the Turkish economy was finding its balance without hindering its strong fiscal performance. “Turkey’s floating exchange rate regime, cautious limits […]

M&As in Turkey double in volume in 2012 – Invest in Turkey

M&As in Turkey double in volume in 2012 17.01.2013 Dünya – Mergers and acquisitions (M&A) in Turkey last year heightened sharply to reach USD 23.2 billion in volume, according to a report by global consultancy firm Ernst & Young’s (E&Y) Turkey office. M&A operations’ total worth hit USD 30 billion when transactions with undisclosed deal […]

Allianz invests EUR 684 million in Turkish insurance market – Invest in Turkey

Allianz invests EUR 684 million in Turkish insurance market  29.03.2013 Sabah – Germany’s Allianz has boosted its presence in the Turkish insurance market with the acquisition of 93.9 percent shares of Yapi Kredi Sigorta, the insurance arm of Turkish-Italian partnered Yapi Kredi Bank, for TRY 1.6 billion (Approx. EUR 684 million), becoming the top supplier […]

Mergers & Acquisitions

It’s somewhat of an art to reach an agreement on price and terms. The ability to understand very quickly the motivations of the different stakeholders and the softer issues involved in transactions is a critical skill. Keith Magnus, Chairman and Head of investment banking, Singapore & Malaysia UBS.

European Sovereign Debt Crisis Explained

WHAT is the European sovereign dept crisis ? European Sovereign Debt Crisis is an unstable situation in which the 17-nation euro zone will not be able to pay the entire debt obligation. It began in Greece in 2009, and has spread to Portugal, Ireland, Italy, Spain, threatening to push Europe into recession. WHY did the […]

Credit Default Swaps (CDS) and Collateralized Debt Obligation (CDO)

Understanding the Financial Crisis – very good explanation!

Interest Rate Swap

Valuation of credit default swap (CDS)

Relationship between bond prices and interest rates

SWAP agreement exemple

SWAP agreement exemple Company A, pays to a lender a variable interest rate (nominal $1M) every period (LIBOR+2%).  Ex: in period 1, if LIBORis 5%, Company A pays 7% or $70k to the lender in that period. In period 2, if Libor goes down to 4%, Company A pays 6% or $60k in interest. LIBOR: […]

Analyst

Analysts must have an internal drive to always be asking “Why ?” and “Is that the complete picture ? ” – “Is there another approach to be considered ?” ROB ROUSE DEPUTY HEAD OF US EQUITY RESEARCH BARCLAYS

U.S. stock indexes pause after record run – MarketWatch.com

U.S. stock indexes pause after record run U.S. stocks veer between small gains and losses on Tuesday following a seven-session winning run that had the Dow Jones Industrial Average closing at another all-time high. NEW YORK (MarketWatch) — U.S. stocks were little changed on Tuesday following a seven-session winning run that had the Dow Jones […]