1.

Record Nr.

UNINA9910808811403321

Autore

Loukoianova Elena

Titolo

Pricing and hedging of contingent credit lines / / prepared by Elena Loukoianova, Salih N. Neftci, and Sunil Sharma

Pubbl/distr/stampa

[Washington, DC], : International Monetary Fund, IMF Institute, 2006

ISBN

1-4623-2762-1

1-4527-0777-4

1-283-51191-6

9786613824363

1-4519-0809-1

Edizione

[1st ed.]

Descrizione fisica

1 online resource (26 p.)

Collana

IMF working paper ; ; WP/06/13

Altri autori (Persone)

NeftciSalih N

SharmaSunil <1958->

Soggetti

Contingencies in finance

Hedging (Finance)

Lines of credit - Prices

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

"January 2006."

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

""Contents""; ""I. Introduction""; ""II. Market Practice""; ""III. Modeling a CCL""; ""IV. Replicating Portfolio""; ""V. Pricing""; ""A. Method 1""; ""B. Method 2""; ""VI. Hedging Issues""; ""VII. Concluding Remarks""; ""References""

Sommario/riassunto

Contingent credit lines (CCLs) are widely used in bank lending and also play an important role in the functioning of short-term capital markets. Yet, their pricing and hedging has not received much attention in the finance literature. Using a financial engineering approach, the paper analyzes the structure of simple CCLs, examines methods for their pricing, and discusses the problems faced in hedging CCL portfolios.