Welcome to the new version of European Tribune. It's just a new layout, so everything should work as before - please report bugs here.
Display:
No, it means I'm virtually guaranteed a payment stream of 95 % of the nominal payment stream, assuming the defaults are uncorrelated.

You need to look at the discounted value of the expected cash flow rather than the nominal principal, for the same reason you need to look at MWh produced rather than nameplate capacity when evaluating the required price of volatile energy sources.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Mar 13th, 2012 at 10:36:35 AM EST
[ Parent ]

Others have rated this comment as follows:

Display:

Top Diaries

Mogg the Moggie

by Frank Schnittger - Jun 15
10 comments

Boris the Beast

by Frank Schnittger - Jun 11
26 comments

Global Community Gathers in Russia

by Oui - Jun 14
16 comments

A Perfect Storm

by Frank Schnittger - Jun 1
157 comments

Fake America In 3 Tweets

by Oui - Jun 3
17 comments

Occasional Series