Financial Development in Emerging Markets: The Indian Experience

Financial markets that function well are crucial for the long-run economic growth of a country. This paper, in the first instance, looks at how the financial development of an economy can be measured. It then traces the financial development of India through the 1990s to the present, assessing the development of each segment of financial markets. In doing so, it highlights the dualistic development of the financial sector. Finally, the paper makes an attempt to offer an explanation of this dualistic development and proposes a road map for the future development of financial markets in India.financial development; india financial development; india financial sector; india financial markets; emerging market economies; india economic growth

Capital markets, CDFIs, and organizational credit risk

Can Community Development Financial Institutions (CDFIs) get unlimited amounts of low cost, unsecured, short- and long-term funding from the capital markets based on their organizational credit risk? Can they get pricing, flexibility, and procedural parity with for-profit corporations of equivalent credit risk? One of the key objectives of this book is to explain the reasons why the answer to the two questions above remains “no.” The other two key objectives are to show the inner workings of what has been done to date to overcome the obstacles so that we don’t have to retrace the same steps and recommend additional disciplines that position CDFIs to take advantage of the mechanisms of the capital markets once the markets stabilize

Pricing default swaps: empirical evidence

In this paper we compare market prices of credit default swaps with model prices. We show that a simple reduced form model with a constant recovery rate outperforms the market practice of directly comparing bonds' credit spreads to default swap premiums. We find that the model works well for investment grade credit default swaps, but only if we use swap or repo rates as proxy for default-free interest rates. This indicates that the government curve is no longer seen as the reference default-free curve. We also show that the model is insensitive to the value of the assumed recovery ratecredit default swaps;credit risk;default risk;recovery rates;reduced form models

A study of default risk for small commercial real estate loans and its impact and implications for securitization

Thesis (M.S.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 1994.Includes bibliographical references (leaves 102-106).by John R. Barrie.M.S

Bankruptcy analysis for 17 companies in Turkish stock market for the years 2018 and 2019

90 pagesIn this study, it is aimed to explain the concept of credit risk in the framework of Basel II and to investigate credit risk of the banks and the real sector in Turkey. To do that, celebrated Merton model is employed for the period 2017-2018 and 17 companies listed in BIST are considered. The findings shed lights on the deteoriorated financial outlook of the Turkish companies. In particular, Turkish banks has very high default probability compared to other big companies listed in BIST. It is thought that this finding provides preliminary warning for the emergent precautionary measures needed to be taken by the policy makers.u çalışmada, Basel II çerçevesinde kredi riski kavramını açıklamak ve Türkiye'deki bankaların ve reel sektörün kredi riskini araştırmak amaçlanmaktadır. Bunu yapmak için, ünlü Merton modeli 2017-2018 dönemi için kullanılmıştır ve BIST'te listelenen 17 şirket dikkate alınmıştır. Elde edilen bulgular, Türk şirketlerinin bozuk fınansal görünümüne ışık tutmaktadır. Özellikle, Türk bankaları BIST'te listelenen diğer büyük şirketlerle karşılaştırıldığında çok yüksek temerrüt olasılığına sahiptir. Bu çalışmanın bulguları, politika yapıcılar tarafından alınması gereken acil tedbirlere ilişkin bir uyarı olara yorumlanabileceği düşünülmektedir