The collateralised debt obligation (CDO) market has grown rapidly, both globally and in Australia, over recent years. CDOs are securities that are issued against a pool of assets that can include bonds, loans or asset-backed securities (ABS) including other CDOs.2 Increasingly, this exposure is being created synthetically by the use of derivatives written on these assets, rather than physically...

This study aims to analyze and apply the effect of current ratio (CR), total asset turnover (TATO), debt (DAR), equity (DER) on return assets (ROA). The population in this is plantation companies with 21 a sample companies. sampling technique used saturated sample/census; that is, all sampled. data collection uses documentation from financial reports published IDX's official website, namely www...

In 1976 Black and Cox proposed a structural model where an obligor defaults when the value of its assets hits a certain barrier. In 2001 Zhou showed how the model can be extended to two obligors whose assets are correlated. In this paper we show how the model can be extended to a large number of different obligors. The correlations between the assets of the obligors are determined by one or mor...

ONETIZING the debt” conjures up fearsome images of excessive money stock growth resulting from Federal Reserve purchases of Treasury debt. Many analysts fear that debt monetization may produce undesirable economic consequences, such as more rapid inflation and, thus, higher nominal interest rates. There appears to be some confusion, however, over what debt monetization means, whether or to what...

Abstract: The European sovereign-debt crisis began in Greece when the government announced in December, 2009, that its debt reached 121% of GDP (or 300 billion euros) and its 2009 budget deficit was 12.7% of GDP, four times the level allowed by the Maastricht Treaty. The Greek crisis soon spread to other Economic and Monetary Union (EMU) countries, notably Ireland, Portugal, Spain and Italy. Us...

A permanent reduction in average inflation should be expected to reduce nominal interest rates on deposits and loans by the same amount. Together with financial deregulation, which reduced interest margins and made housing finance more accessible, the reduction in nominal interest rates in Australia since the 1980s has eased the initial repayment burden of a given-sized debt. Households have th...