Monetary Policy – Rules or Discretion?

In a economy recently plagued with housing market crashes and financial crisis, we can easily see the vital functions that a monetary policy has on anticipating and preventing instability in our economy. Understanding how monetary policy works and how it can be affected, by either rules or discretion, is crucial and all possibilities must be … Read more

Microfinance and microcredit

INTRODUCTION Microfinance in the past few decades has been projected as one of the most pertinent channels for poverty alleviation. This is particularly reflected in the self-congratulatory information dissemination that has emanated from the microfinance institutions, of having tapped the most vulnerable sections of the Indian labour that exist in the informal sector. In a … Read more

Investments

Investment can also be called as the sacrifice of a certain present value for the reward of an uncertain future. It contains making many numerous decisions such as type, mix, amount, timing, grade etc. of investment. In a broader sense it is a tradeoff between return and risk. The place where securities which are already … Read more

Literature review – factors influencing investor sentiment

Sanjay Sehgal (2009) in his study has used economic factors like value, inflation, rate and liquidity to influence the capitalist sentiment and its relationship with the performance of the market. Structured form and numerous tools like: place, decision, magnitude relation, advance decline P/E Ratio etc. were used. Information was used to analyze the sample responses. … Read more

Consolidation

Under IFRS, consolidation is appropriate when an entity has the ability to govern the financial and operating policies of another entity to obtain benefits. Control can be represented when a parent owns more than 50 percent of an entity’s voting power. If the parent does not own more than 50 percent, however, a legal or … Read more

Stock markets

Stock markets play a vital part towards the economy of a country. The stock market most important role is supporting the growth of the industry and commerce in the country eventually affects the economy of the country to a great extent. That is the reason that a rising stock market is the sign of a … Read more

Leasing companies in Mauritius

Mauritius Leasing Company Related essay: Methodology: Research into leasing business in Mauritius It is the principal and number one player in the Mauritian market as leasing company. In 1987, the Mauritius leasing had incorporated as the first leasing company in Mauritius as joint venture with Government to offer leasing facilities to businesses. In 27 February … Read more

Prospect Theory and Its Applications in Behavioral Economics

Prospect theory will always be defined as a behavioral economic theory that suggests people value gains and losses and make decisions based on perceived gains rather than perceived losses. This fundamental principle contrasts with traditional economic theories that assume rational decision-making processes. According to the journal article “Prospect Theory and Coercive Bargaining” by Christopher K. … Read more

"Annuity Purchase, rather than ARFs, should be the default option for retirees" – do you agree?

Introduction The provision of financial security in retirement is vital for society and individuals. However basic knowledge on options for retirees is still lacking in the majority of the population. Pension systems around the world are coming under increasing pressure with rising life expectancies, uncertain economic conditions and increased sovereign debt. Therefore it has never … Read more

Capital markets

Capital markets provided a platform to investors for trading the financial securities such as bonds, stocks etc. The traders can be both individuals and institutions. Capital market is an important part of financial market, as a corresponding concept to the money market. Capital market is more focus on long term financing activities, it always refer … Read more

Microfinance and MFIs

From the time of independence unemployment and poverty has been two major characteristics and challenges of India. The major cause for the above two has been the unavailability of sufficient credit facilities for the poor and unemployed. These two factors have become the most challenging roadblock in the path of sustainable development of the country. … Read more

Retail Lending – NBFCs to match Banks in retail lending

According to a study done by CRISIL which is one of the leading credit rating agencies in India, non-banking financial companies (NBFCs) are well-positioned to establish a stronger presence in the retail finance space, and match the non-mortgage retail lending portfolio of banks within next 2 years The recent trends of strong growth and improving … Read more

Research proposal: The new global determinants of FDI flow to developing countries: the importance of ICT and democratization

Introduction The purpose of this research in summary is the determinants of Foreign Direct Investment in the Developing countries. The research comprises of a central theme known as Foreign Direct Investment. Before companies take part in participating in the foreign markets, some type of investment are considered. Such as whether the participation in foreign markets … Read more

Credit Value Adjustment of Interest Rate Exotic Derivatives

Abstract This thesis focuses on calculation of CVA for Bermudan swaptions. Two-factor interest rate model is calibrated to market data and used for the simulation of future interest rate paths. We find that the model is able to fit well to market data. The default probabilities for each counterparty are directly extracted from CDS market … Read more

Flow of funds

The Federal Reserve released the Flow of Funds numbers on September 18, 2014 for the second quarter of the year. The report has provided an opportunity for people to be able to inquire about the debt levels which are outstanding in the economy of the United States. Judging from the recent release of the Flow … Read more