credit-losses

Learning Objectives: Explain the distinctions between economic capital and regulatory capital and describe how economic capital is derived. Describe the degree of dependence typically observed among the loan defaults in a bank’s loan portfolio and explain the implications for the portfolio’s...

Hi David, Just a question about netting. Could you perhaps provide an example of netting that imposes higher losses for certain credtors. Legal risk is mentioned in the notes but in the video you've also mentioned that it imposes other creditors to more significant losses. Many thanks in...