Match the liability structure of a bank with the maturity structure of the asset portfolio. Describe the new risks or increase in existing risk by any difference in liability versus maturity structure.
What are the key global issues in the insurance industry.
How is monetary policy created by the Federal Reserve disseminated by commercial banks ?
What are the trends in U.S. corporate underwriting activity.
An investment bank agrees to underwrite a $ 100,000,000, 8-year 7% semiannual bond issue for X Corporation. If interest rates rise 0.03%, or 3 basis points overnight, what will be the impact on the profits of the investment bank ?
An investment bank pays $ 20.50 per share for 3 million shares of X. It then sells these shares to the public for $ 22.50 per share. How much money does X receive ? What is the profit to the investment bank ? What is the stock price of X ?
A mutual fund owns 500 shares of X currently trading at $ 12, and 300 shares of Y, currently trading at $ 24. The fund has 900 shares outstanding.
What is the Net Asset Value of the fund ?
If investors expect the price of X shares to increase to $ 14, and Y shares to decrease to $ 23, at the end of the year, what is the new NAV ?
Assume that the expected price of X shares is realized at $ 14. What is the maximum price decrease that can occur if Y realize an end of year NAV equal to the NAV estimated in (a) ?
Assume that a bank has assets located in the EU worth 101 million euros, on which it earns an average of 9% per year. The bank has 76 million Euros in liabilities on which earns an average of 5% per year. The spot exchange rate is 0.76 euros/$.
If the exchange rate at the end of the year is 0.79euros/$, will the dollar have appreciated or depreciated against the euro ?
Given the change in the exchange rate, what is the effect in dollars on the net interest income from foreign assets and liabilities ?

Consider the following balance sheet for X Savings (in milllions).
Assets …