We study the effects of mark-to-market accounting (MTM) on banks' loan origination and retention decisions. We point out a conceptual shortcoming of MTM. Loan pBleck, AlexanderGao, PingyangSocial Science Electronic PublishingBleck, A. and P. Gao (2015). Mark-to-market, loan retention, loan...
Mark-to-Market, Loan Retention, and Loan Origination We study the effects of mark-to-market accounting (MTM) on banks' loan origination and retention decisions. We point out a conceptual shortcoming of MTM. L... A Bleck,P Gao - 《Social Science Electronic Publishing》 被引量: 4发表: 0年...
Examines the mark-to-market activities in the loan marketplace. Risks that demonstrate the critical need for fair market value loan pricing in the mark-to-market arena; Significance of employing a market approach; Advice for investors seeking to reduce risks and obtain accurate prices in an illiq...
Mark to market is a way of recording and valuing the loan assets on the balance sheet of the lender. Traditionally, loans made by lenders were held on the books at book value. However, there was a problem with this approach. The book value does not reflect the decreased credit quality ...
loan payments in the course of the year. Companies adjust or mark these assets to the fair value given by Mark to market. However, if the measurement does not reflect the fair or true value of accounts, problems may arise. Calculating the price if an asset...
There are other problems. Say you are a bank that has a private loan to a company with tradedCDScontracts. Your best mark-to-market estimate would be to price the loan based on the cost of hedging out the credit risk. But in many cases, the CDS and cash bond markets have decoupled....
FAS 133, Accounting for Derivative and Hedging Activities, mandates that derivatives be recognized in the statement of financial condition as either assets or liabilities and are to be disclosed at fair value. Changes in fair value of the derivative instrument may be offset by changes on the value...
We study the ex-ante efficiency of mark-to-market accounting (MTM) in a loan market by taking into account its real effects on banks' origination and retention decisions. Despite its benefit of improved valuation accuracy, MTM could reduce the overall efficiency of the economy. The efficiency ...
aall i wish is to dream again[translate] a资本和利息抵押贷款提供没有投资机会,虽然借款人可以安排一起按揭等设施。 Capital and the interest mortgage loan does not provide the opportunities for investment, although the borrower may arrange together facilities and so on mortgage.[translate] ...
In contrast to a mortgage, a spreadbet is a good example of a mark to market loan that can be extremely expensive if you can’t meet the margin calls, let alone all the other magnified risks of investing with borrowed money. With a spreadbet, you put down say a 20% deposit to trade...