Bankers still struggling with declining collateral values on their commercial real estate loans and tougher scrutiny from examiners aren't going to risk hits to their capital by lending to weak firms until the economy is in a clear upswing, says James Whitney, of Conway MacKenzie, a Birmingham, Mich. financial consulting firm.
Portfolios of shows, like equally fashionable portfolios of movies, are said to have a similar risk profile to venture capital funds, in which one or two hits (typically) more than make up for the flops, which are usually the great majority.
ECONOMIST: Investing in stage musicals is, like, totally hot!
We tend to allocate about 10% of the risk capital to managed futures.
Having incurred smaller losses than rivals, it is still prepared to deploy risk capital where others fear to tread.
Basel II was initiated in 2004 and expanded capital requirements to include tenets to maintain consistency of banking regulations globally in respect to risk and capital management procedures.
FORBES: Basel Barriers: How capital requirements would impede progress in the sovereign debt crisis
In the U.S. competitive, private enterprise model, that Professor Crawford so objects to as monopolistic and discriminatory, American private enterprise is investing tens of billions of dollars annually in private risk capital to drive more, faster, and more ubiquitous broadband service.
The emphasis on regulatory capital adequacy has short-changed economic capital, capital allocation and might hamper efforts to use capital efficiently to price risk, Chartis reported.
If you put your investment capital to work in the financial markets you are exposing that capital to risk.
Hashim is firm on where he doesn't want to risk his capital, namely in industries where government regulators call the shots.
This comes in many forms, such as problem-solving creativity, special knowledge and skills, work experience, and willingness to risk investment capital for promising new enterprises.
FORBES: In Reflection, With Resolve, Rediscovering American Exceptionalism
If strategies are available to get more monthly income with no risk or requirement to add capital, why not find the loophole and take advantage of it?
FORBES: Five Things You May Not Know About Social Security, But Should
They cannot bear to risk such capital losses again, so they stay away from equities and over-weight their portfolios with Treasury bonds and other conventional fixed income securities where they naively believe they cannot lose principal.
FORBES: Stocks And Bonds: Distortions Are Surfacing In The Markets
Basel I focused mainly on credit risk, international banks which were required to hold capital equal to 8% of the risk-weighted assets.
FORBES: Basel Barriers: How capital requirements would impede progress in the sovereign debt crisis
The trick is for managers to slice off the risk of capital loss and sell it to somebody else, such as an insurer.
ECONOMIST: Using alchemy to turn high-risk equity into bonds
Regulators and major brokerage houses have been pushing for a centralized clearing solution to eliminate counterparty credit risk in order to free up capital for lending.
It is not clear, however, that GE's industrial businesses added to the systemic risk posed by GE Capital, or to the difficulty of regulating it.
So while Scots technology entrepreneurs need to seek out risk capital where it can be found, the other answer is to tap investment funding closer to home that's not currently being exposed to much risk.
Along with five others, they had been forced to draw up restructuring plans after falling short of the 8% ratio of capital to risk-weighted assets that is considered the acceptable minimum by international financial regulators (by more than six percentage points in the case of Commercial Bank of Korea).
Besides, this latest revolution is being conducted under perfect conditions--no inflation, no war and a Fort Knox of risk capital available to all.
Less profit means less economic capacity to invest risk capital?
We have conducted investor landscape reviews to support the growing interest of the capital market, and most importantly we have always had an eye toward how to leverage our risk capital beyond our own commitments.
FORBES: Social Innovation in Acceleration: Building the Social Impact Bond Ecosystem
When I analyze FDIC loan exposure data lately, I find that while bigger regional banks retain considerable exposure to CRE loans, the ratios to risk-based capital are much lower and thus are not considered a threat.
FORBES: Five More Banks Fail, Regional Banks Remain Pressured By Real Estate Portfolios
Though much of the increase in risk can be attributed to dry international capital markets, low investor tolerance for risk and poor growth prospects in developed markets, this does not exonerate Mr da Silva or the rest of them.
Really early-stage science projects that have a lot of materials science risk or long-term capital intensity risk are going to be tougher to fund.
The problem with the idea is that credit ratings, while they are used in certain legal senses (certain investors are only allowed to hold AAA paper for example, the risk capital that must be allocated to a holding changes with the rating) a credit rating is an opinion, nothing more.
They have to hold a minimum total capital of 8% of risk-weighted assets - that is, capital held to back the loans that they make.
The goal behind mini options, which are set to begin trading March 18, is to allow traders with less capital to put to risk to enjoy the same risk management opportunities that larger traders do in the options market.
FORBES: Mini Options: A Cheaper Way To Place Bets On Apple, Google And The Gold ETF
In the U.S. there are risk-capital lenders similar to what I have in mind for developing nations.
The report also noted that Raymond James Bank's ratio of capital to risk-weighted assets was a healthy 10.2%.
Mr Miles said that the optimal ratio of core tier one equity capital to risk-weighted assets would be 19%.
应用推荐