1.

Record Nr.

UNINA9910956120103321

Autore

Loukoianova Elena

Titolo

Pricing and Hedging of Contingent Credit Lines / / Elena Loukoianova, Salih Neftci, Sunil Sharma

Pubbl/distr/stampa

Washington, D.C. : , : International Monetary Fund, , 2006

ISBN

9786613824363

9781462327621

1462327621

9781452707778

1452707774

9781283511919

1283511916

9781451908091

1451908091

Edizione

[1st ed.]

Descrizione fisica

1 online resource (26 p.)

Collana

IMF Working Papers

Altri autori (Persone)

NeftciSalih

SharmaSunil

Soggetti

Contingencies in finance

Hedging (Finance)

Lines of credit - Prices

Banking

Banks and Banking

Banks and banking

Banks

Capital and Ownership Structure

Contingent Pricing

Credit risk

Credit

Depository Institutions

Derivative securities

Finance

Financial institutions

Financial Instruments

Financial regulation and supervision

Financial Risk and Risk Management

Financial risk management

Financial services law & regulation

Financing Policy



Futures Pricing

Goodwill

Industries: Financial Services

Institutional Investors

Investments: Options

Lines of credit

Loans

Micro Finance Institutions

Monetary economics

Monetary Policy, Central Banking, and the Supply of Money and Credit: General

Money and Monetary Policy

Money

Mortgages

Non-bank Financial Institutions

Option pricing

Options

Pension Funds

Simulation Methods

Value of Firms

United States

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.