Your English writing platform
Discover LudwigExact(4)
"At the beginning, banks were willing to accept not to trigger margin calls because they feared forced assets sales," said Philip Gisdakis, a senior credit strategist at Unicredit in Munich, "but now that there is a serious deterioration in the valuation of collateral, they cannot do that any longer and need to protect their loans".
We take a closer look at the valuation of collateral itself and, in particular, at the valuation of collateral in real estate.
Then, we analyze our hypotheses using bivariate and multivariate analyses in Sect. 4. Afterwards, we check the valuation of collateral in real estate for systematic biases.
Yet the pieces of evidence mentioned indicate that any remaining bias should not be so severe that our analysis of the valuation of collateral is significantly affected.
Similar(56)
On the other hand, factors influencing the recovery rate that were identified in other studies (in particular for retail customers), could be caused by the biased valuation of the collateral.
Petitioners were correct in looking to § 506(a) for a judicial valuation of the collateral to determine the status of the bank's secured claim.
These studies show that the realized proceeds are, on average, smaller than the original valuation of the collateral.
This sample selection issue is a problem for default prediction studies (see, for a brief discussion, Wolter and Rösch 2014), but the focus of our study lies on finally defaulted loans, their recovery rates, and the valuation of their collateral.
2008; Grunert and Weber 2009; Qi and Yang 2009; Leow and Mues 2012; Park and Bang 2014) take collateral into account using a collateralization ratio or its inverse, the (current) loan-to-value ratio, which both represent the relation between the bank's valuation of the collateral and the EAD.
At present, most models of collateral valuation do not, but should, account for the changes in the microstructure of the underlying.
Registered secured bonds, for example, are required to deliver a collateral valuation opinion in the case of release of collateral.
Write better and faster with AI suggestions while staying true to your unique style.
Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com