ABC Bank’s regulators require that the bank use multiple risk mitigating approaches for the upcoming stress testing. Critically discuss the credit risk management approaches used by banks.

The assignment is a report requested by the senior management at ABC Bank. As ABC Bank’s risk trainee, you have been asked to prepare a report on the bank’s ability to meet the requirements of the Basel III Framework, which will be submitted to the bank’s senior risk analyst.

The cover page should contain a title, the total word count and an Executive Summary describing your key findings. (5 marks)

Provide a critical discussion on interest sensitive gap management when used as interest risk management tool in banks. Comment on its effectiveness and implication on leverage requirement.

ABC Bank’s regulators require that the bank use multiple risk mitigating approaches for the upcoming stress testing. Critically discuss the credit risk management approaches used by banks.

What did the balance sheet look like in the quarter just prior to issuing the bonds? Include both a copy from before the issue and after the issue in an appendix to your paper.

What did the balance sheet look like in the quarter just prior to issuing the bonds? Include both a copy from before the issue and after the issue in an appendix to your paper. From the “Key Financial Ratios” link contained in the Week 2 Lesson, calculate Return on Equity (ROE), one debt ratio, and at least one other ratio of your choice both before and after the bonds were issued, and discuss what the results indicate and why you think they are important to your report.

Section 3: Trends in YTM and Price: (25 points) At what price and yield-to-maturity (YTM) was the initial offering sold? Tabulate the price and YTM of the issue at the end of each calendar quarter for the last six quarters. Then, plot the tabulated values to visualize the trends in YTM and prices. Add a brief discussion about your graph or chart and what the results indicate.
Section 4: Rate of Return: (25 points) If you were one of the original investors in this issue and you had invested $10,000, what would your total return be if you sold the securities at today’s market price? Compute the current duration of the bond and add a brief discussion about your calculations and what the results indicate.

Discuss the potential causal factors that are revealed in the analysis. How do these causal factors compare to the causal factors found in the CSB’s investigation report? Do you think more analysis is needed?

Events and Casual Factors Chart Project

The final report can be read/downloaded at the following link:
https://www.csb.gov/assets/1/20/csbfinalreportlittlegeneral.pdf?13741

Additional information on the incident, including a video summary, can be found at the following link:
https://www.csb.gov/little-general-store-propane-explosion/

Complete the assignment as detailed below.

Use the charting procedures on pages 72–76 of your textbook to help you with this assignment. (attached file)

In addition, refer to the
example events and causal factors (ECF) chart in the Unit IV Lesson for an example of this type of chart. (attached file)

Part II: On a separate page, Discuss the potential causal factors that are revealed in the analysis. How do these causal factors compare to the causal factors found in the CSB’s investigation report? Do you think more analysis is needed?

What could be the reasons for the difference is performance for JIVAX and S&P 500? What suggestions would you make for improving the performance of JIVAX?

FINANCE JP MORGAN
Read the case study. Then answer the following questions:

Briefly describe the money management business of JPM.

Identify 3 behavioral biases that JPM hopes to exploit, and how they can be exploited to obtain superior returns?

The fund created by JPM to exploit these biases is described on their website.

https://am.jpmorgan.com/us/en/asset-management/gim/adv/products/d/jpmorgan-intrepid-value-fund-a-4812a0284

The ticker symbol for the fund is JIVAX.

The fund was launched in 2005. What has been the return to the fund from Jan 31, 2005 to the current date? (Provide the starting price, ending price and return over the time period.)

What has been the return to the S&P 500 over the same time period? (Provide the starting price, ending price and return over the time period. S&P is an appropriate comparison as it is comprised of mid and large sized firms.)

What could be the reasons for the difference is performance for JIVAX and S&P 500? What suggestions would you make for improving the performance of JIVAX?

 How States and localities will manage through this crisis is dependent upon their prior fiscal choices. What are the differences between what the Federal government can do, and what the states and localities can do? What are the implications? You should discuss why these differences matter.

How States and localities will manage through this crisis is dependent upon their prior fiscal choices. What are the differences between what the Federal government can do, and what the states and localities can do? What are the implications? You should discuss why these differences matter.
https://www.pewtrusts.org/en/research-and-analysis/articles/2020/04/24/states-take-early-steps-to-manage-covid-19-budget-fallout?utm_campaign=2020-04-29+Rundown&utm_medium=email&utm_source=PewT

The recent American Recovery Plan addressed some of the above issues, as seen in the article below – what remains to be done from your perspective? Provide examples and your justification or support.

 Estimate a firm’s free cash flow and explain why free cash flow has such an important effect on firm value (CLO 1 and 3).

ULO 1- List each of the key financial statements and identify the kinds of information they provide to corporate managers and investors (CLO 2 and 3).

Estimate a firm’s free cash flow and explain why free cash flow has such an important effect on firm value (CLO 1 and 3).

List the five groups of ratios and identify, calculate, and interpret the key ratios in each group (CLO 3).

Identify the concept referenced in the article.

Explain how the concepts in the chapters for this unit are applied in the article.

 How States and localities will manage through this crisis is dependent upon their prior fiscal choices. What are the differences between what the Federal government can do, and what the states and localities can do? What are the implications? Discuss why these differences matter.

How States and localities will manage through this crisis is dependent upon their prior fiscal choices. What are the differences between what the Federal government can do, and what the states and localities can do? What are the implications? Discuss why these differences matter.
https://www.pewtrusts.org/en/research-and-analysis/articles/2020/04/24/states-take-early-steps-to-manage-covid-19-budget-fallout?utm_campaign=2020-04-29+Rundown&utm_medium=email&utm_source=PewT

The recent American Recovery Plan addressed some of the above issues, as seen in the article below – what remains to be done from your perspective? Provide examples and your justification or support.

How has the current crisis impact this vital account of the US population? What are areas of fiscal health that the States and local governments should be concerned about? What will be some of the challenges?

How has the current crisis impact this vital account of the US population? What are areas of fiscal health that the States and local governments should be concerned about? What will be some of the challenges?
https://www.census.gov/newsroom/press-releases/2021/2020-census-apportionment-results.html
https://2020census.gov/content/dam/2020census/materials/partners/2020-01/Uses-of-Census-Bureau-Data-in-Federal-Funds-Distribution.pdf

How has each source been impacted by the current crisis, and what should policy makers do to address the shortfall in receipts that is likely to occur in the upcoming fiscal years? How does the provision below that was included in the American Recovery Plan impact these choices?

How States and localities will manage through this crisis is dependent upon their prior fiscal choices. What are the differences between what the Federal government can do, and what the states and localities can do? What are the implications? You should discuss why these differences matter.
https://www.pewtrusts.org/en/research-and-analysis/articles/2020/04/24/states-take-early-steps-to-manage-covid-19-budget-fallout?utm_campaign=2020-04-29+Rundown&utm_medium=email&utm_source=PewT

How has the current crisis impact this vital account of the US population? What are areas of fiscal health that the States and local governments should

be concerned about? What will be some of the challenges?
https://www.census.gov/newsroom/press-releases/2021/2020-census-apportionment-results.html
https://2020census.gov/content/dam/2020census/materials/partners/2020-01/Uses-of-Census-Bureau-Data-in-Federal-Funds-

Based on your knowledge of why grants exist, and how they are calculated, how would you alter some of the formulas being used to distribute aid?

What recommendations should policy makers consider ensuring that the States that have been hardest hit by the crisis are compensated? Alternatively, if you believe it is not up to the Federal government to support these states with additional relief, defend your position and offer alternatives for revenues that the State should consider.
https://www.cbpp.org/research/state-budget-and-tax/states-need-significantly-more-fiscal-relief-to-slow-the-emerging-deep

President Biden Outlines Plan for Additional Coronavirus-Related Relief and Stimulus

(5) Fiscal choices determine the mix of revenues that a State relies on to fund their budget on an annual basis. Describe the primary sources of revenues that the States rely on, noting if they are progressive, regressive or proportional (explaining each).

How has each source been impacted by the current crisis, and what should policy makers do to address the shortfall in receipts that is likely to occur in the upcoming fiscal years? How does the provision below that was included in the American Recovery Plan impact these choices?

ARPA’s Tax Cuts Limitation Is a Problem for More States Than You Think