Influences on secured lending property valuations in the UK

A significant part of bank lending in the UK is secured on commercial property and valuations play an important part in this process. They are an integral part of risk management within the banking sector. It is therefore important that valuations are independent and objective and are used properly to ensure that secured lending is soundly based from the perspective of both lender and borrower. The purpose of this research is to examine objectivity and transparency in the valuation process for bank lending and to identify any influences which may undermine the process. A detailed analysis of 31 valuation negligence cases has been followed by two focus groups of lenders and valuers and also questionnaire surveys of commercial lenders and valuers. Many stakeholders exist, for example lenders, borrowers and brokers, who are able to influence the process in various ways. The strongest evidence of overt influence in the process comes from the method of valuer selection with borrowers and brokers seen to be heavily involved. There is some also some evidence of influence during the draft valuation process. A significant minority of valuers feel that inappropriate pressure is applied by borrowers and brokers yet there is no apparent part of the process that leads to this. The panel system employed by lenders is found to be a significant part of the system and merits further examination. The pressure felt by valuers needs more investigation along with the question of if and how the process could dispel such feelings. This is seen as particularly important in the context of bank regulation

Contributory negligence involving overseas European banks in property valuation negligence cases in the UK

This paper examines the phenomenon of cross-border property lending and examines a number of issues regarding lending procedures and decision making processes in the context of the relationship between lender and professional advisor. It commences by placing these procedures and processes in the context of the development of cross border European property investment and finance. The UK has been a popular destination for overseas investors and lenders over the last decade and is therefore used as a case study to examine the additional institutional risk that overseas lenders may face when operating outside of their own country and obtaining advice from home professionals. The UK market was the subject of a boom period during the late 1980s, followed by a recession in the early 1990s. The losses triggered a number of professional negligence actions by lenders against valuers. These include a number of overseas lenders mainly from Europe and these cases have been examined for any particular features which, coupled with other data gained from overseas lenders as part of an interview survey, could be used to isolate any significant problems for European lenders in overseas markets. The research identified a lack of clarity in roles and relationships between lender and advisor, difficulties in communications both internally and between overseas branches and headquarters and failures in provision and interpretation of advice. The paper concludes by identifying the issues which may need to be addressed generally by lenders and their advisors, when the lenders are operating in overseas markets

Measuring the economic significance of structural exchange rate models

This paper examines both the in-sample and out-of-sample performance of three monetary fundamental models of exchange rates and compares their out-of-sample performance to that of a simple Random Walk model. Using a data-set consisting of five currencies at monthly frequency over the period January 1980 to December 2009 and a battery of newly developed performance measures, the paper shows that monetary models do better (in-sample and out-of- sample forecasting) than a simple Random Walk model.monetary models, forecasting

Relation between higher order comoments and dependence structure of equity portfolio

We study a relation between higher order comoments and dependence structure of equity portfolio in the US and UK by relying on a simple portfolio approach where equity portfolios are sorted on the higher order comoments. We find that beta and coskewness are positively related with a copula correlation, whereas cokurtosis is negatively related with it. We also find that beta positively associates with an asymmetric tail dependence whilst coskewness negatively associates with it. Furthermore, two extreme equity portfolios sorted on the higher order comoments are closely correlated and their dependence structure is strongly time varying and nonlinear. Backtesting results of value-at-risk and expected shortfall demonstrate the importance of dynamic modeling of asymmetric tail dependence in the risk management of extreme events

The Quadmill: effects of eccentric training vs. concentric training on lower extremity power and anaerobic capacity.

Training focuses on the concentric action of muscle during exercise for most exercise programs, but eccentric training may yield greater results. The QuadmillTM is a unique piece of training equipment that focuses on training the quadriceps muscle eccentrically. Purpose: to determine if using the QuadmillTM could increase power and anaerobic capacity to the same level, if not greater, than a standard concentric focused lower body training protocol. Participants were 44 undergraduate college students (24 Male 20 Female) Design: participants placed into three equal groups (QuadmillTM, Lifting, Control). The two experimental groups (QuadmillTM and Lifting) underwent seven weeks of a training intervention based on group. Pre- and post-tests of power (vertical jump height and approach jump height) and anaerobic capacity (shuttle run) were used to measure performance. The QuadmillTM group was statistically significant from both of the other groups in terms of power after the seven weeks Conclusion: eccentric training with the QuadmillTM can yield greater power development than concentric training with a standard resistance training program

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Systematic Breeding Decisions Made Within A Vertically Integrated Beef Supply Chain

This paper investigates how to use a vertically integrated supply-chain model to aid in the selection of beef sires when making breeding decisions. A systematic approach was taken to model and determine the benefits and associated sire rankings arising from the simulated mating of parent stock to create progeny for use within a vertically integrated supply chain. Supply chain-wide gross margins serve as the benefit measure. Supply chain revenues are in the form of quality indexed retail product revenue. Quality indexing (i.e. discounting) factors included intramuscular fat and longissimus muscle (i.e. ribeye) area. A fixed and an optimum endpoint (i.e. harvest) selection method are compared. Varying progeny gross margins and sire rankings were produced. The various levels of gross margin were significantly different from zero, and provide a clear means by which to incorporate economic variables into selection of beef sires. No current method of selecting parental stock returns similar results.value-chain management, beef-cattle breeding, Industrial Organization, Livestock Production/Industries,