Portfolio hedging and Resolution: Difference between pages

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imported>Doug Williamson
(Link with Interest rate risk and Portfolio pages)
 
imported>Doug Williamson
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The hedging of interest rate risk or other risks on a portfolio basis, rather than at the level of individual assets and liabilities.
<i>Bank resolution.</i>
The special process of resolving the problem of the actual or threatened insolvency of financial firms.  


The speed with which value destruction occurs in a failing financial firm means that normal corporate insolvency processes and liquidation are inappropriate for such firms. As in normal insolvency, losses will be expected for some creditors.
Contrast with ‘recovery’ in which a firm facing financial difficulties is returned to acceptable financial health without imposing losses on the distressed firm's creditors.




== See also ==
== See also ==
* [[Macro hedging]]
* [[Resolution Authority]]
* [[Interest rate risk]]
 
* [[Portfolio]]
* [[Liquidation and Payout]]
 
* [[Insolvency]]
 
* [[Key Attributes]]

Revision as of 10:07, 29 May 2013

Bank resolution. The special process of resolving the problem of the actual or threatened insolvency of financial firms.

The speed with which value destruction occurs in a failing financial firm means that normal corporate insolvency processes and liquidation are inappropriate for such firms. As in normal insolvency, losses will be expected for some creditors.

Contrast with ‘recovery’ in which a firm facing financial difficulties is returned to acceptable financial health without imposing losses on the distressed firm's creditors.


See also