Calculate the total capital, Financial Accounting

The current balance sheet of CBKH shows $800 million of corporate loans ($500 million of which being rated AA- and the remaining rated BBB+), $200 million of bonds issued by an OECD country with a credit rating of BBB, $400 million of residential mortgage, and $350 million of personal loans. In addition, HCU has the following transactions with an AA-rated corporation:

(a) a 7-year interest rate swap with a principal of $100 million worth $3 million;

(b) a 9-month foreign exchange forward contract with a principal of $150 million worth -$9 million; and

(c) a 2-year long option on gold with a principal of $50 million worth $7 million (here the principal amount is roughly the exercise price amount). What is the total capital requirement under Basel I if there is no netting? What difference does it make if the netting amendment applies? What is the total capital required under Basel II when the standard approach is used?

Posted Date: 3/25/2013 5:21:40 AM | Location : United States







Related Discussions:- Calculate the total capital, Assignment Help, Ask Question on Calculate the total capital, Get Answer, Expert's Help, Calculate the total capital Discussions

Write discussion on Calculate the total capital
Your posts are moderated
Related Questions
Calculate Bond's Yield to Maturity Consider a coupon bond that has a $1,000 per value and a coupon rate of 10%. The bond is currently selling for $1,150 and has 8 years to mat

Show all support work for your calculations. 1.  Simple Interest versus Compound Interest [LO1]  First City Bank pays 7 percent simple interest on its savings account balances,

Calculation of Liquidity ratios Current Ratio and Acid-Test Ratio -               2008 2009 2010 A

Heather & Terry have a mortgage on their primary residence of $750,000 and a mortgage on their vacation home of $410,000. In 2013, they incurred $46,400 of mortgage interest expens

Purchase price $2.15 Exercised Price: $37.50 Currently Trading at $37.00 In order to make the decision on the best course of action, two tables of calculations are needed:

Errors An error is an error discovered in the current financial period but it relates to one or more previous financial periods. Such errors arise due to mathematical mistakes, m

The following market data are available for interest rates and volatilities associated with standard maturities: Suppose you are holding a bond portfolio which invests in a

The economic demand quantity can also be found out with the assist of a graph. In this technique ordering cost, carrying cost and total inventory costs as per various lot sizes are

Americans With Disabilities Act - ADA  legislation passed in 1990 that bans discrimination against people who are having disabilities. According to this Act, discrimination against

Personal representatives duties Personal representation has the following duties; 1) To provide and pay out of the estate of the deceased, the expenses of a reasonable funeral