Headlines July 18, 2019 (Ofer Abarbanel online library)

TRUMP: ‘Imagine if We Didn’t Have all the Bull$&*!’…

‘You’re Going to Vote for Me or You’re Going to be So Goddam Poor’…

Crowd chants ‘Send Her Back’ about Omar…

‘Racist,’ ‘socialist’ lines drawn for 2020…

Trials of HIV jab to start after monkey test success…

Beyonce ‘LION KING’ Song Bombs… Continue reading “Headlines July 18, 2019 (Ofer Abarbanel online library)”

Adjustable-rate mortgage (Ofer Abarbanel online library)

Adjustable-rate mortgage

A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets.[1] The loan may be offered at the lender’s standard variable rate/base rate. There may be a direct and legally defined link to the underlying index, but where the lender offers no specific link to the underlying market or index the rate can be changed at the lender’s discretion. The term “variable-rate mortgage” is most common outside the United States, whilst in the United States, “adjustable-rate mortgage” is most common, and implies a mortgage regulated by the Federal government,[2] with caps on charges. In many countries, adjustable rate mortgages are the norm, and in such places, may simply be referred to as mortgages. Continue reading “Adjustable-rate mortgage (Ofer Abarbanel online library)”

Expected Default Frequency – hosted by Ofer Abarbanel online library

KMV Model

Expected default frequency
• Expected default frequency (EDF) is a forward-looking measure of actual probability of default. EDF is firm specific.

KMV model is based on the structural approach to calculate EDF (credit risk is driven by the firm value process).

– It is best when applied to publicly traded companies, where the value of equity is determined by the stock market.

– The market information contained in the firm’s stock price
and balance sheet are translated into an implied risk of default.

Ofer Abarbanel – Online Library

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