Shadow Banking Flashcards
What can a bank do with bonds when the bank runs into trouble?
Convert bonds to equity.
What types of liquidity backstop you know of?
Private, Government, Immature (Private)
What is MMMF
Money Market Mutual Funds.
Is liquidity put an asset or liability in Shadow Bank, MMMF & Traditional Banking?
An Asset in Shadow Bank & MMMF.
A liability in Traditional Bank.
When Government backstops?
For traditional banking
When Traditional Banks backstop?
For non-traditional banks.
Hi CDS is an asset or Liability in Shadow Bank, Insurance, Investment Bank?
Asset of Shadow/Investment Banks.
Liability of Insurance
Which Tranche is more risky? Hi or Mid ?
Mid Tranche is more risky.
Is Mid CDS an asset or liability in Pension/Insurance & Investment Bank?
Asset for Pension/Insurance.
Liability in the balance sheet of Investment Banks.
Define Shadow Banking?
Money market funding of Capital market lending.
funding of lending (global or local)?
Global funding of local lending
What is Shadow banking?
Banking done by non-banks
