Credit rating philosophy and framework
Financial institutions must pull out all the stops to meet the more stringent requirements for risk management.
Having a solid credit ratings and portfolio management framework is crucially important. But how consciously are they tackling the task? Do they really know how appropriate and consistent the rating models are on which they base and control risks?
And do financial institutions know what is going on behind the figures on their dashboards?
An interest swap is a practical way of covering interest rate risks. Provided that a number of rules are observed, it is permissible to use hedge accounting in such cases.
In this article, senior consultant Mark van den Berg explains the advantages of hedge accounting with the help of an example from the business community.
DACT seeks to intensify its role as a treasury centre ofexcellence
The Dutch Association of Corporate Treasurers (DACT) is the country’s national association for treasury professionals.
Last year the DACT took another step towards serving even more members even better. It expanded its website and extended its cooperation with its partners, including Zanders. Good reason for an interview with Albert Hollema, interim treasury manager at AkzoNobel and DACT chairman.
Renewable energy sector
The renewable energy sector depends on natural resources such as the sun and the wind.
Due to the unpredictable nature of these resources, it is often difficult for the renewable energy sector to insure against the risk of not reaching the minimum production levels.
Applying Alternative Risk Transfer (ART) by means of Insurance-linked Securities (ILS) is a way to bring this risk to the capital markets.
By the end of 2007, the ILS market in the US reached a peak of US$15bn. In Europe, the ILS market is still in its infancy and offers abundant opportunities for innovative corporate finance boutiques and insurance companies.
Developments Healtcare institutions
The Dutch healthcare sector is in flux. The newspapers report on new developments almost on a daily basis.
In the previous issue of Zanders Magazine we argued that the credit crisis came at the wrong time for this sector: precisely at the moment when the risks are increasing, the banks reduce their lending.