Describe the features of the method you would choose to measure the interest risks identified..
homeworks help for financial institutions Document Preview: University of Phoenix Material Week Four Individual Assignment: Financial Transaction Risks Describe the risk exposure(s) in the following financial transactions. Identify which transactions are influenced by interest rates or interest income. (CAUTION: Some can be influenced by both!) Risk Types: Interest rate risk, Credit risk, Technology risk, Foreign exchange rate risk, Country or sovereign risk Financial Transactions Risk Type Describe and justify risk type Interest Rate or Interest Income? A bank finances a $10 million, six-year fixed-rate commercial loan by selling one-year certificate of deposit. An insurance company invests its policy premiums in a long-term municipal bond portfolio. A French bank sells two-year fixed-rate notes to finance a two-year fixed-rate loan to a British entrepreneur. A Japanese bank acquires an Austrian bank to facilitate clearing operations. A bond dealer uses his own equity to buy Mexican debt on the less developed country (LDC) bond market. A securities firm sells a package of mortgage loans as mortgage-backed securities. Describe the features of the method you would choose to measure the interest risks identified. curities firm sells a package of mortgage loans as mortgage-backed securities. Describe the features of the method you would choose to measure the interest risks identified. ransactions are influenced by interest rates or interest income. (CAUTION: Some can be influenced by both!) Risk Types: Interest rate risk, Credit risk, Technology risk, Foreign exchange rate risk, Country or sovereign risk Financial Transactions Risk Type Describe and justify risk type Interest Rate or Interest Income? A bank finances a $10 million, six-year fixed-rate commercial loan by selling one-year certificate of deposit. An insurance company invests its policy premiums in a long-term municipal bond portfolio. A French bank sells two-year fixed-rate notes to finance… Attachments: HW-Help.doc
Describe the features of the method you would choose to measure the interest risks identified.
