F_Useful Mnemonics 5 Flashcards
dr scc : Factors to consider when setting assumptions
Demographic: Age, health, employment status
risk of anti-selection
state of the economy
customer
culture
dr scc : Factors to consider when setting assumptions
dr
Demographic: Age, health, employment status
risk of anti-selection
dr scc : Factors to consider when setting assumptions
scc
state of the economy
customer
culture
reg cushion : Why financial providers need capital
regulatory requirement to demonstrate solvency
expenses of launching a new product or starting a new operation
guarantees can be offered
cashflow timing management
unexpected events cushion, e.g. adverse experience, fines
smooth profit
help demonstrate financial strength/attract new business/ obtain good credit rating
investment freedom to mismatch
opportunities such as mergers and acquisitions
new business strain funding
reg cushion : Why financial providers need capital
reg
regulatory requirement to demonstrate solvency
expenses of launching a new product or starting a new operation
guarantees can be offered
reg cushion : Why financial providers need capital
cushion
cashflow timing management
unexpected events cushion, e.g. adverse experience, fines
smooth profit
help demonstrate financial strength/attract new business/ obtain good credit rating
investment freedom to mismatch
opportunities such as mergers and acquisitions
new business strain funding
system t : Features of assets in general
security risk yield real nominal, income yield spread term expenses marketability
tax
pours grid : Reasons for holding money market instruments
protect monetary values opportunities take advantage of opportunities uncertain liabilities recent inflow of cash short term liabilities
general economic uncertainty
recession
interest rates rising
depreciation of domestic currency
pours grid : Reasons for holding money market instruments
pours
protect monetary values opportunities take advantage of opportunities uncertain liabilities recent inflow of cash short term liabilities
pours grid : Reasons for holding money market instruments
grid
general economic uncertainty
recession
interest rates rising
depreciation of domestic currency
