the basis of the credit levels of reference assets, the possibility of occurrences of credit events differs and it puts massive influences on the decision of premium. Generally, protection buyer usually retains reference assets, yet there are no particular problems even if the protection buyer does not have them on the conditions that the reference assets are clearly written in the CDS contract.
Ⅱ. Economic Environment
The economic trends of a country are very influential over business operations. Singapore's economy has shown continued resilience against most global crisis, and has rebounded with a record 13% growth from the recent global economy downturn. This rebound not only showed that the Singapore's forward-looking and alert damage-control measures are always in place and
Over 90% of the U.S. government organizations use
hardware and software of IBM
Obtain 3,000 patents a year on average, No.1 for 15 years in a row
Ranked No.1 among the most honored computer companies for businesses
(By Fortune Magazine in 2004)
Produced 5 Nobel prize winners from the Watson Research Center
Developed ‘FORTRAN(Formula translation), ‘Memory semiconductor
1. Limitations of economy supporting by financial, interest rate policy
Budget deficit, quantitative easing did not worked
2. Export for survival
Increasing worries about double deep
Beggar thy neighbor policy
3. U.S strategy – Election on november
2. the securitization of financial assets
&
the interconnectedness between financial institutions both within and across countries
*Huge deficits of the financial institution
*The credit crunch
*Increasing voltility of stock price, interest rate, exchange rate
currency markets
In a landmark move to shore up the sagging exports sector, Japanese government intervened in the currency market for the first time since 2004 to stem the rise of yen.
Addressing a press conference in the morning in Tokyo, after the government and the Bank of Japan (BoJ) stepped into the market to sell yen and buy dollars, Japanese Finance Minister Yoshihiko Noda said he
ⅱ) Insolvency of enterprise and bank
- Insolvency of enterprise
In 1997, average debt ratio of Korea enterprises was 333%. It was relatively higher than that of USA(159%) and Japan(206%)
It caused insolvency of the enterprises, which lead to major companies went bankrupt.
- Insolvency of bank
at that time, Many Chiefs of financial organizations was sent from above(낙하산 인사).
(1) Bubble increase of the housing industry.
Following is the background of Bubble increase of the housing market.
Easy Money Policy of FRB(Federal Reserve Board)
In the housing industry of USA formed mortgage-system, the interest-rate is the factor that decide market price and adjust the demand and supply of the housing market, and also is main channel of currency policy.
After 『dot-com
③ 자금 공여: 가맹국의 국제수지가 일시적으로 불균형(적자)이 되었을 경우, 평가절하·수입제한을 피할 수 있도록 IMF가 외화자금을 공여 할 수 있다. 이 경우 외화자금의 공여는 관계국 통화당국에 대해서만 이루어지며, 대가로 자국통화를 IMF에 지불한다. 이는 일반적으로 경상거래를 위한 지불에 필
2009 Greek government announced that Greece's budget deficit is 12.7% of GDP
Fitch, Moody's and S&P downgraded Greece’s country credit rating
(-rating Greek bonds as junk)
Worries of crisis spreading to other European nations like PIIGS
EU & IMF decided to place 110 billion Euro to rescue Greece
Nearly US$1 trillion financial rescue package has been put together by the EU and IMF fo