|
|
The role of rating in terms of FDI
Bohuslavová, Petra ; Taušer, Josef (advisor) ; Vinš, Petr (referee)
The world crisis that countries were facing since 2008 strongly affected the international capital flows. Beside other factors, the cause was found in inaccurate ratings hence the rating agencies were criticized very harshly. The mail goal of this diploma thesis is to study the interconnection between sovereign rating and FDI inflow from 2011 until 2015. The first chapter describes FDI and main factors which play a key role in FDIs setting. The second chapter concentrates on rating and rating agencies. The third part of the thesis works with representative countries data in 2006 and 2015 and its aim is to compare FDI inflow and sovereign rating of each country using static data. Last chapter consists of three case studies: Slovenia, Portugal and Ireland and tries to find out if there is a correlation between FDI inflows and ratings from 2011 until 2015.
|
|
|
Using Rating in Regulation Practice
Řehořová, Monika ; Blahová, Naďa (advisor) ; Metrah, Samy (referee)
This master thesis deals with the issue of using rating in the context of determining capital requirements. The focus is on using the Standardised Approach and the Internal Rating-Based Approach to calculate credit risk capital requirements. Different approaches to managing the risk and evaluating the capital adequacy. Criticism of rating agencies as well as the complexity of Internal Rating-Based Approach is taken into account. Furthermore, the thesis discusses the issue of responsibility of external rating agencies for their evaluations, and together with the issue of lacking competition. Various alternatives to external rating are discussed. The internal rating process is discussed in more detail along with the factors which affect rating evaluations of exposures to various entities. Subsequently, the thesis focuses on determining the rate of provision for impairment expected losses on receivables, and a possible impact of accepting IFRS 9 on capital adequacy.
|
|
|
Securitization and financial crisis 2007-2009
Buev, Philipp ; Šíma, Ondřej (advisor) ; Obešlo, František (referee)
The aim of this bachelor´s work is to acquaint the reader with the issues of securitization, its specificity, its products and its role in the financial crisis 2007-2009, the work also aims to show why the long-terms risks associated with CDOs and MBS have been underestimated. The objectives and reasons for securitization are also described in this work. Attention is focused primarily on the US financial system due to the uniqueness of the US economy and also because the securitization has begun in the USA. In addition, the work examines the causes of the financial crisis 2007-2009, the importance of the credit rating agencies in the securitization process. This bachelor´s thesis analyzes in detail CDOs and MBS, the process of their creation and their relation to the financial crisis 2007-2009.
|
|
|
Relationship between government debt and sovereign rating
Antonyová, Kristýna ; Blahová, Naďa (advisor) ; Brada, Jaroslav (referee)
A main focus of this thesis is a relationship between government debt and rating of a respective country. The first chapter forms a theoretical basis and deals with a general characteristics of rating for all economic subjects, introduction of the three most important rating agencies and last but not least with government debt. The theoretical part is followed by a description of government debt's development and rating of the Czech Republic. An application part of the thesis conducts a basic analysis of relationship between government debt and rating and subsequently the core analysis using a specific framework from a rating agency.
|
|
|
Analysis of changes in an approach to state's rating after the financial crisis
Horáková, Eva ; Blahová, Naďa (advisor) ; Šíma, Ondřej (referee)
This thesis deals with globalisation of markets. It focuses on examining the economic crisis of 2008 and 2010 and on how individual countries can cope with deteriorating of macroeconomic values, especially with financial implications of this situation. The thesis also examines credit rating agencies as indicators of financial soundness of investment instruments, to which is often reffered as to culprits of the crisis for their reaction to the development of the mortgage market. The thesis defines the rating in the concept of sovereign states and describes the market of credit rating agencies. It further evaluates individual rating agencies and practices in the context of the crisis, bringing a comprehensive picture of the role they played at the beginning of the crisis. It also attempts to outline more points of view on the previously unilaterally and predominantly negatively perceived issue of reputation of credit rating agencies.
|
|
|
The regulation of the rating agencies
Búry, Tomáš ; Borkovec, Aleš (advisor) ; Hraba, Zdeněk (referee)
The Regulation of Credit Rating Agencies The thesis is concentrated on the regulation of credit rating agencies and aims to contribute to a current discussion regarding the future of credit rating agencies. A primary focus of the work was to explore whether a negative role of credit rating agencies in current crisis was caused by their insufficient, unnecessary or unsuitable regulation. An evaluation of sufficiency of newly adopted regulation with respect to the effective functioning of the rating market was chosen as an additional purpose of research. For the fulfillment of the stated aim analytical and comparative methods and synthesis were used. The style of the thesis falls within the Law and Economics approach. The research is based on EU and US legal norms, legislative documents of the European Commission and legal jurisprudence. Part I describes the emergence, development and the functioning of credit rating agencies, structure of rating market and legal meaning of the rating. Part II analyzes the ratio for regulation of credit rating agencies from the perspective of economic analysis of law. Mainly, whether agencies fulfill their function, what could potentially restrain them and how can be regulation helpful in this field. Part III compares and examines current regulatory reform of credit...
|
|
|
Credit rating agencies and their impact on the bond markets of EU countries
Havlíček, Tomáš ; Horváth, Roman (advisor) ; Jánský, Ivo (referee)
This thesis analyses long and short-term perception of announcements issued by leading credit rating agencies (Fitch, Moody's and S&P) in sovereign bond markets. Using three empirical approaches we assess the nature of impact of CRAs on 10Y sovereign bond yields and 5Y CDS of 24 countries of EU between 2002 and 2012. We find significant response of sovereign bond yield and CDS spreads to downgrades and negative outlooks. Furthermore there is evidence of anticipative power of sovereign bond markets in foreseeing negative events implying CRAs lag the market. The spillover effect from credit rating announcements has been revealed between both EMU and non-EMU parts of EU implying the financial integration is not limited only to countries with common currency. Well performing economies outside EMU are resistant to contagion. JEL Classification C23, F34, G10, G14, G15 Keywords credit rating; credit default swap; rating agency; sovereign bond; EU Author's e-mail tomhav@gmail.com Supervisor's e-mail roman.horvath@gmail.com
|
|
|
The Role of Rating Agencies in the Worldwide Crise
Kratochvíl, Jan ; Očko, Petr (advisor) ; Ivánek, Jiří (referee)
The thesis focuses on the role of rating agencies in the financial crisis. The aim of the thesis is to judge a rate how much rating agencies contributed to give rise to last financial crisis, began by fall of Lehman Brothers in 2008. A main question is whether rating agencies acted inadvertently or on purpose and which all factors contributed most to result in financial crisis and as well how the rating agencies could influence and cope with these factors. The thesis deals with regulation of rating agencies and their appropriateness too. Rating and its aspects in theoretical way are described in the first part of the work. The real situation of rating industry prior to and in financial crisis is described in the second practical part of the thesis.
|
|
|
Topical legal issues of banking regulation
Kadlic, Alexander ; Kotáb, Petr (advisor) ; Dřevínek, Karel (referee)
Current Legal Issues of Bank Regulation - Resume This thesis paper deals with issues that can be found in relation with bank regulation. At present, globalized world, banks as important financial intermediaries play a major role. Banks are present in our daily lives and whether or not we want to, they facilitate our everyday operations with the money, investment of free monetary resources, and also borrowing of money. We got accustomed to the convenience that the use of various banking services provides. Equally important are the services of banks for businesses enterprises, various investment companies and funds, and also the countries themselves (the governments). Failure of this system, now that so many subjects are dependent on it, could have far-reaching negative consequences. The bank regulation and its instruments serve as a protection against the rise of adverse consequences. With the growing importance of banks in our society, the importance of their regulation grows as well. But even this may not represent perfect protection and bank regulation may conceal other unforeseen problems. This thesis on "Current legal issues of bank regulation" reflects the legal status of May 31 2012 and is trying to highlight the problems that occur in specific instruments of banking regulation. The aim of this work...
|
|
|
Impact of Sovereign Ratings Changes on European Sovereign Yield Spreads
Vyskočilová, Veronika ; Horváth, Roman (advisor) ; Teplý, Petr (referee)
The spreading sovereign debt crisis in the Euro zone has renewed the debate about impact of credit rating agencies on financial markets. This thesis aims to explore the role played by the leading credit rating agencies by analysing the interaction between changes in sovereign ratings announced and the yield spreads of sovereign bonds, especially the short term impact and the potential contagion effect of rating changes on the highly integrated Euro zone financial market. The conducted event study and panel regression indicate that there is a significant impact of rating downgrades and negative rating outlooks on sovereign bond markets. Moreover, we have found significant contagion effect spreading from downgraded countries to non-event Euro zone members, namely not only to sovereign bond markets, but also to stock markets. JEL Classification: C23, E44, G12, G14 Keywords: credit ratings; sovereign yield spreads; rating agencies; contagion Author's email: veronika.vyskocilova@email.cz Supervisor's email: roman.horvath@gmail.com
|
guest ::
