Filtered by: Financing, Valuation desk

Clear all filters

Total Loss Absorbing Capacity: the end of the bail-out?

Billions of euros of public funds were invested in systemically important institutions in order to sustain them at the height of the crisis. This was deemed an absolute one-off bail-out and the Financial Stability Board (FSB) introduced a proposal to end ‘too-big-to-fail’. Does this proposal effectively protect the tax payer or are we simply paying the burden in advance?

Read More

The straddle a tool in volatile markets

Speculating on the rise – and fall – of security prices

Put and call options are quite well known among a large crowd. The ‘straddle’ however, is less familiar to the general public. It became famous after its (mis)use by Nick Leeson, which caused the bankruptcy of Barings Bank in 1995. In this article the structure of a straddle is discussed, as well as the opportunities and dangers of this product.

Read More