Sentence examples for In counterparty from inspiring English sources

Now, you can say that asset prices do not follow any distribution and that throwing in counterparty risk makes derivatives even harder to price, such that the innovation of pricing even the simplest financial derivatives was just smoke and mirrors.

The financial infrastructure also has important effects on how market participants respond to perceived changes in counterparty risk.

The $52 billion (latest 12-month revenue) company has less than $50 million in counterparty exposure to Enron.

Merrill Lynch and Canadian Imperial Bank of Commerce wrote down $3 billion and $2 billion, respectively, in counterparty exposure to ACA Financial, which was downgraded to junk status in December.

Since the presence of collateral has a direct reducing impact on FTDCVA/DVA, this formula may give the impression that collateralization achieves a reduction in counterparty risk at no cost to either the bank or the clients.

Christopher Wood, who pens investment letter Greed & Fear each week for CLSA (Credit Lyonnais in Asia) says, "The desire of European banks both to deposit money at the ECB and borrow from it is a signal that there is a fundamental lack of confidence in counterparty risk in the system".

The obvious thing for banks to do in a recession, let alone one in which trust in counterparties has been shattered and a credit bubble is deflating, is lend less (see chart 2).

Even now, some worry about structural changes in a counterparty with big positions in complex derivatives an estimated €10 trillion in notional principal in ABN's case.

In post-crisis markets, however, these assumptions have been challenged; in particular, counterparty credit risk has emerged as the natural form of default risk, there is shortage of liquidity in financial markets, while other frictions have also gained importance.

At this point the risk of an imminent stock market crash -- like the one-day collapse of 20% plus in US stock prices in 1987 -- cannot be ruled out as the financial system is breaking down, panic and lack of confidence in any counterparty is sharply rising and the investors have totally lost faith in the ability of policy authorities to control this meltdown.

For linked tasks, lifecycle-state and -transition changes are events the task in the counterparty domain follows.