R10-PM for institutional Flashcards
F-spending endowment
F-spending endowment
Endownment caracteristcs
Budget stabilization funds
Set up when economy heavy linked with natural resources
Development funds
Prioritizes national socioeconomic projects (infra and key industries)
Saving funds goal return
Return above foreign reserves held by CB.
Pension funds main goal
Sabe and uses to meet future pension liabilities
Diference between DB and DC pension plans ( Benefit payment, Contributions, investment decision making, mortality/longevity risk)
Diference between DB and DC pension plans ( Benefit payment, Contributions, investment decision making, mortality/longevity risk)
F-modified duration for equity
The extra term reflects expected moviment on yield of liabilities vs. assets
F- Chance in equity in function of…
F- vol of port of assets and liabilities
Capital requeriments set to reference with
Statutory reports - that have regulatory adjustments
Caracteristcs of Canadá model
High allocation to AI
Overall objetictive for banks and insurance companies
Maximize market value of inst equity with asssurance that the claims can be meet
Also reduce risk mismatches between assets and liabilities
For insurers whats the tipes of reserves portifolios
Reserve- meet the policy requeriments
Surplus- Generate higher returns
Tipes of insurance
Life
Property and casuality
Second need more liquidity in short term
Banks objective
Earn profits by taking deposits from savers and making loans to borrowers
Why floating rate bonds was good alternative to decrease duration
Because bonds has lower price sensitive related to change in interest because every change the coupon are restablished.
