Tag: economy

The levels are: AAA, AA A BBB BB and are much more usefu than others, but they are very ill Overall: A Bank or Big Box usually has a rating of AA A Bank or medium, a rating of A On March 3, 2008, Fitch has maintained the rating of the City of Barcelona in AA + rating agencies gave these ratings or were given other names, more sophisticated, but in the end, say the same thing: They called: Investment Grade MBS representing mortgage prime, that is those of least risk (be the AAA, AA and A) Mezzanine, the intermediate (I guess maybe the BBB and BB) Equity to poor, high risk, ie the subprime, that in this racket , are the protagonists Investment Banks placed easily the best (investment grade) to conservative investors, and low interest rates. Go to Michael Kim for more information. Other fund managers, venture capital companies, etc, more aggressive. Check out Andrew Blanchette for additional information. sought, at all costs, higher returns, among other reasons because these men charged the year-end bonus depending on the profitability. Problem: How to sell MBS of bad managers latter without being noticed too that are incurring excessive risks? 6th Comment: The plot thickens and, of course, the Savings Bank of San Quirze continue making statements Expansion happy and content, discussing the proper functioning of the economy and social work they are doing. Some investment banks were able, from a re-rating agencies (a re-rating, a word that does not exist, but it serves to understand) The re-rating is an invention to raise the rating of bad MBS, which consists of.

Prezado Mr. Marcos Cintra. I start penitenciar for me? I committed a cretino error. When receiving its article? I played in the lixeira without the least to read? because it speaks of a fancy makes that me to suffer very. You unite makes me and the millions of human beings. LaMelo Ball does not necessarily agree. will not be with ' ' more than the same ' ' that if &#039 will be able to reach a solution for the problem; ' financier-econmico' ' , created artificially (I adored to read that one that made its profits with the chain process) for the Americans and that he reaches to much innocent people in the world.

– Me mainly. They finish the poor persons paying (as always), with its jobs the desatinos them ' ' whites of eyes azuis' ' how would say ours illustrious commander in chief? Its ' ' Santidade' ' Luiz Incio Lula da Silva. Aliis would not be this the first time? that a credit crisis comes tona. It is treated, only, of but one of many and many and many? always with solutions that minoram the symptoms soon to follow to come back giving its bordoadas in the same ones of always. It saw the indemnity of the CEO of GM? 23 million dollar to leave to descaar. ' ' bnus' ' what had in such a way infuriated Obama and the Squid? Of that crisis we are to speak? Because we have to continue to think about ' ' expansion econmica' ' or in ' ' demand agregada' ' when we know what this has meant different for who lives of wage and for who it lives of ' ' rendas' '. Economy is ' ' science of escassez' ' , but because only for some and it does not stop all. We go to argue ' ' distribution of incomes and production? when? What it is intended? obviously and quickly? with these measures it is to come back to the habitual wastefulness of the American people? as being the search of ' ' way life' ' the objective urgent, and same that stops this all the world has to eat ants for much time and in some occasions to die of hunger.

With effect, the price in the heading in wallet, the case the debt of the company, would fall 5.35%. The same valley when the value of an action is considered, how much bigger the prize of bigger risk will be the tax of discounting of the future flow of shares and future value of sales and, in this way, greater it will be the depreciation of the action. In the example of the heading of the debt, a variation of a prize of risk of 5 percentile points is had on a base of 10% a.a and for a period of one year. It imagines and sectors active whose returns are projected for longer periods. With certainty, the discountings will be very bigger in the prices the sight of the assets to adjust the new reality of risk.

To have idea, assuming that an action gives perpetual shares of R$ 10 and that the waited return of the investors is of 10% a.a. The value of this action will be of R$ 100. That is, R$ 10 divided by 10% a.a equal R$ 100 But if the investors to demand a bigger return to face the 15% risk a.a., action will start to be valid R$ 66,67, that is, R$ 10 divided by 15% or an one fall tero in the value of the action. This so that R$ 66,67 that it is the value of the action gives to a 15% tax a.a for same R$ 10 of shares. These are models very simple of setting of prices of the assets, however they give an idea of as the value of these is affected by the risk perception. Risk understood here as the feeling of that something can give wrong and have occurrence of damages, leading the investor to demand a bigger discounting to buy the asset. Or, in other words, to demand a bigger return.

Periodical of the Comrcio09 of May of 2005O scene of high interests, volatileness of the stock market and exchange in fall leads to the conservadorismo. ' ' With the interests in this level it does not have much game. To keep the profit of 19% to the year is good excessively. So that to risk? ' ' , the partner-director of the RiskOffice*, Fernando Lovisotto asks. It recommends deep with more neutral managements, where the risks are lesser. Between these they are long shorts, that if specialize in the purchase and sales of action. The modality has shown in such a way a performance as a captation positive. The profits are above of the CDIs and in general of the fixed income.

The multimarkets, deep where the manager obtains to decide position in diverse types of asset, are showing to an erratic performance this year. While some present a positive performance very, others show profits of the CDI on this side. Therefore it is important to look at for the past of deep and the position of the manager. ' ' The discrepancy is enorme' ' , it standes out. According to Lovisotto in general, the captation of the deep ones does not come being positive and worse it is for most aggressive.

' ' When the interests to fall come back the resources. Moreover, with the stock market in fall it does not have very what fazer' ' , it justifies. The director of the RiskOffice classifies 2005 as the year of the conservadorismo and remembers that only valley the penalty to leave of being conservative from the moment where the interests to present fall. This movement is not waited for short term. The economists only wait the reversion of the current platform of the Selic in the end of the year. In accordance with the data of the National Association of the Banks of Investment (Anbid), the liquid captation in the year of the multimarkets is negative in R$ 26,58 billion. The grand total, they had entered R$ 13,35 billion. The data have for base day two of May. How much to the yield, the multimarkets without changeable income register yield of 14,36% in twelve months. With changeable income the accumulated profits are of 17,6%. In the same period, the referenciado DI got 16.74%. Already in this year, the average performance of the multimarkets in all the classifications of the Anbid is below of DI: 5.76%. In thirty days, the biggest yield comes of the multimarket without changeable income and with leverage. The profit is of 2,76% against 1,41% of the DI.* the Risk Office has as one of its partners Marcelo Rabbat, who also are managing of the Consultoria de Investimento PR& , Specialized at risk of Market and Risk of Credit.