Model and Offset: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Classify page.)
 
imported>Doug Williamson
(Add link.)
 
Line 1: Line 1:
A representation of a real situation using a selected set of simplifying assumptions and relationships.  
1.


Ability to set assets against liabilities in multiple bank accounts. 


In finance, financial models are widely used as tools for valuation and to support financial decisions.
Also used in netting transactions.


An important benefit of well-structured financial models is to facilitate sensitivity analysis.
 
2.
 
More generally, the right to reduce or eliminate a liability, by deducting the amount of a related asset. 
 
Most commonly, when the asset and liability are with the same counterparty.
 
 
3.
 
More generally still, the netting of any items, whether or not any positive action is needed to cause the netting.
 
For example, the netting of inflation differentials and expected changes in spot foreign exchange rates under purchasing power parity theory.
 
 
4. ''Environmental concerns''.
 
Abbreviation for carbon offsetting.




== See also ==
== See also ==
* [[Agent based modelling]]
* [[Assets]]
* [[Business model]]
* [[Carbon offsetting]]
* [[Decision tree]]
* [[Counterparty]]
* [[Financial model]]
* [[Escrow]]
* [[Four-corner model]]
* [[Exchange rate]]
* [[Game]]
* [[Inflation]]
* [[IRB]]
* [[Interest offset pooling]]
* [[Model risk]]
* [[Liabilities]]
* [[Modelling]]
* [[Netting]]
* [[Mostly positive]]
* [[Open interest]]
* [[Scenario analysis]]
* [[Spot]]
* [[Sensitivity analysis]]
* [[Stress test]]
* [[Three-corner model]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Compliance_and_audit]]
[[Category:Investment]]
[[Category:Ethics]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 21:56, 4 March 2022

1.

Ability to set assets against liabilities in multiple bank accounts.

Also used in netting transactions.


2.

More generally, the right to reduce or eliminate a liability, by deducting the amount of a related asset.

Most commonly, when the asset and liability are with the same counterparty.


3.

More generally still, the netting of any items, whether or not any positive action is needed to cause the netting.

For example, the netting of inflation differentials and expected changes in spot foreign exchange rates under purchasing power parity theory.


4. Environmental concerns.

Abbreviation for carbon offsetting.


See also