Hi David,
I'm coming back again to you because I need you precious help.
Actually I have some, but small questions regarding the credit risk assessment for loan.
1-what's teh difference between the RESERVE REQUIREMENT and the COMPENSATING BALANCE? at the end are both reserve, but required by different subjects?
2-Can I say that the probability of NOT repay is E(r) = 1-p(1+k) ?
3- Who is the counterparty covered by the "cross default provision" in the sovereign risk?
4- How we can define the "grace period" in the rescheduling of a foreign loan?
5- in the Merton model is said that the degts are less sensible at the r variation respect to the equity, during a financial distress? Are not both equal?
6-Why the ptf EL is lower than the UL?
7-to recognize a SPV, based on the FAS140, that has to be diveded by the originator. Is this rule linked to the definition of a loan sell on "partecipation basis"?
and last....what is the rule of VIES on the FIN46R?
I would really apprecate an your feedback!!!
Thanks ,
Francesca
I'm coming back again to you because I need you precious help.
Actually I have some, but small questions regarding the credit risk assessment for loan.
1-what's teh difference between the RESERVE REQUIREMENT and the COMPENSATING BALANCE? at the end are both reserve, but required by different subjects?
2-Can I say that the probability of NOT repay is E(r) = 1-p(1+k) ?
3- Who is the counterparty covered by the "cross default provision" in the sovereign risk?
4- How we can define the "grace period" in the rescheduling of a foreign loan?
5- in the Merton model is said that the degts are less sensible at the r variation respect to the equity, during a financial distress? Are not both equal?
6-Why the ptf EL is lower than the UL?
7-to recognize a SPV, based on the FAS140, that has to be diveded by the originator. Is this rule linked to the definition of a loan sell on "partecipation basis"?
and last....what is the rule of VIES on the FIN46R?
I would really apprecate an your feedback!!!
Thanks ,
Francesca