Pricing and Hedging of Contingent Credit Lines /

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 st...

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Hlavní autor: Loukoianova, Elena
Další autoři: Neftci, Salih, Sharma, Sunil
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2006.
Edice:IMF Working Papers; Working Paper ; No. 2006/013
On-line přístup:Full text available on IMF
Popis
Shrnutí: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.
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Fyzický popis:1 online resource (26 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
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