Author(s): Alistair Milne, Cass Business School, Perry Mehrling, Barnard College, Columbia University, New York, supported by ACCA
Alistair Milne and Perry Mehrling, together with Laurence Kotlikoff of Boston University, propose using government credit insurance guarantees to combat the credit crisis. Their idea is to use these guarantees to put a floor under the prices of the better quality tranches of structured credit securities, hence restoring liquidity to credit markets and arresting the global credit contraction.
Updated: 05/09/2010 | Comments: 0 | Rating: Not yet rated | Views: 1113
Author(s): Lucio Sarno, Cass Business School, Farooq Akram and Dagfinn Rime, Norges Bank
If markets are efficient, then there are no exploitable arbitrage opportunities. But if no one engages in arbitrage, then what eliminates such exploitable opportunities? This column puts international financial markets under the microscope and shows that arbitrage opportunities exist, but they are usually eliminated in less than five minutes. Such micro-arbitrage makes the assumption of no arbitrage safe for those looking at the bigger picture.
Updated: 05/09/2010 | Comments: 0 | Rating: Not yet rated | Views: 101
Author(s): Dr Alistair Milne interviewed by Professor Steve Thomas
Dr Alistair Milne, a reader in banking at the Cass Business School, published The Fall of the House of Credit with Cambridge University Press . Steve Thomas, Professor of Finance, caught up with him to talk about the convictions behind the work. Both are Cass Experts. Inculded is the transcript and a summary of the key points.
Updated: 05/09/2010 | Comments: 0 | Rating: Not yet rated | Views: 249 | 
Author(s): David Blake, Cass Business School, Edmund Cannon, Bristol University, Ian Tonks, University of Bath
The report highlights the consequences of the Government’s proposal to end the requirement for pension scheme members to purchase annuities by the age of 75.
Updated: 05/09/2010 | Comments: 0 | Rating: Not yet rated | Views: 85
Claims reserves are held by insurance companies so that they have sufficient funds to pay claims when they are submitted by policyholders. In general insurance, insurance policies usually last for a year; the policyholder pays an upfront premium and then expects any claims to be met – no matter when they are made. The problem for insurers is that there is often a delay before the claims are arrive, and then a further delay before they are paid.
Updated: 06/09/2010 | Comments: 0 | Rating: Not yet rated | Views: 578
