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Write-Down vs. Write-Off

Write-down represents a reduction in the carrying value/ amount of an asset to reflect and record a decline in its...

Tier 1 Capital vs. Tier 2 Capital

Tier-1 capital is a layer of capital (for a bank or financial institution) that consists of common equity, minority interests,...

Difference Between Write-Down and Write-Off

Write-down represents a reduction in the carrying value/ amount of an asset to reflect and record a decline in its...

Difference Between Tier 1 Capital and Tier 2 Capital

Tier-1 capital is a layer of capital (for a bank or financial institution) that consists of common equity, minority interests,...

Types of Risks That Give Rise to Non-Traded Market Risk

Non-traded market risk is the risk (market risk) that affects the value of assets or liabilities outside the trading book...

Difference Between Equity Risk and Equity Price Risk

Equity risk is a type of risk that reflects the possibility of changes in the market price of equities or...

Difference Between Credit Risk and Credit Spread Risk

Credit risk is defined as the risk arising from potential financial losses due to the failure of a customer (borrower,...

Uncovered Debt Instrument: Examples

An uncovered debt instrument is a type of fixed-income instrument that is not backed by collateral. It is backed (covered)...

Types of Money Market Vehicles

A money market vehicle (MMV) is a structure or arrangement (e.g., a fund) that provides exposure to money market movements....

Difference Between Portfolio Tilting and Portfolio Rebalance

Portfolio tilting, or simply tilting, refers to the practice of making changes in the industries of a portfolio's components or...