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AIG Financial Products
AIG Financial Products Corporation (AIGFP) is a subsidiary of the American International Group, headquartered in New York, New York, with major operations in London. The collapse of AIG Financial Products, headquartered in Wilton, Connecticut, is considered to have played a pivotal role in the global financial crisis of 2008–2009. In spring 2008, AIGFP suffered enormous losses from credit default swaps that it issued and traded in earlier years. Company officials issued the swaps believing they would have to pay out few, if any, of them. But as the financial crisis worsened during early 2008, many companies began to default on their debt, forcing AIGFP to assume losses far greater than anticipated. The losses at AIGFP caused credit agencies to downgrade the credit rating of the entire AIG corporation in September 2008. The resulting liquidity crisis essentially bankrupted all of AIG. Many believed that AIG was too big to fail and that an AIG bankruptcy could cause an already f ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
American International Group
American International Group, Inc. (AIG) is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions. , AIG companies employed 49,600 people.https://www.aig.com/content/dam/aig/america-canada/us/documents/investor-relations/2019/aig-2018-annual-report.pdf page 7 The company operates through three core businesses: General Insurance, Life & Retirement, and a standalone technology-enabled subsidiary. General Insurance includes Commercial, Personal Insurance, U.S. and International field operations. Life & Retirement includes Group Retirement, Individual Retirement, Life, and Institutional Markets. AIG is a sponsor of the AIG Women's Open golf tournament. AIG's corporate headquarters are in New York City and the company also has offices around the world. AIG serves 87% of the Fortune Global 500 and 83% of the Forbes 2000. AIG was ranked 60th on the 2018 Fortune 500 list. According to the 2016 Forbes Global 2000 list, AIG ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Derivative (finance)
In finance, a derivative is a contract that ''derives'' its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and is often simply called the "underlying". Derivatives can be used for a number of purposes, including insuring against price movements ( hedging), increasing exposure to price movements for speculation, or getting access to otherwise hard-to-trade assets or markets. Some of the more common derivatives include forwards, futures, options, swaps, and variations of these such as synthetic collateralized debt obligations and credit default swaps. Most derivatives are traded over-the-counter (off-exchange) or on an exchange such as the Chicago Mercantile Exchange, while most insurance contracts have developed into a separate industry. In the United States, after the financial crisis of 2007–2009, there has been increased pressure to move derivatives to trade on exchanges. Derivatives are one of the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Credit Derivative
In finance, a credit derivative refers to any one of "various instruments and techniques designed to separate and then transfer the ''credit risk''"The Economist ''Passing on the risks'' 2 November 1996 or the risk of an event of default of a corporate or sovereign borrower, transferring it to an entity other than the lender or debtholder. An unfunded credit derivative is one where credit protection is bought and sold between bilateral counterparties without the protection seller having to put up money upfront or at any given time during the life of the deal unless an event of default occurs. Usually these contracts are traded pursuant to an International Swaps and Derivatives Association (ISDA) master agreement. Most credit derivatives of this sort are credit default swaps. If the credit derivative is entered into by a financial institution or a special purpose vehicle (SPV) and payments under the credit derivative are funded using securitization techniques, such that a debt ob ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Dow Jones-AIG Commodity Index
The Bloomberg Commodity Index (BCOM) is a broadly diversified commodity price index distributed by Bloomberg Index Services Limited. The index was originally launched in 1998 as the Dow Jones-AIG Commodity Index (DJ-AIGCI) and renamed to Dow Jones-UBS Commodity Index (DJ-UBSCI) in 2009, when UBS acquired the index from AIG. On July 1, 2014, the index was rebranded under its current name. The BCOM tracks prices of futures contracts on physical commodities on the commodity markets. The index is designed to minimize concentration in any one commodity or sector. It currently has 23 commodity futures in six sectors. No one commodity can compose more than 15% of the index, no one commodity and its derived commodities can compose more than 25% of the index, and no sector can represent more than 33% of the index (as of the annual weightings of the components). The weightings for each commodity included in BCOM are calculated in accordance with rules account for liquidity and production d ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Collateralized Debt Obligation
A collateralized debt obligation (CDO) is a type of structured asset-backed security (ABS). Originally developed as instruments for the corporate debt markets, after 2002 CDOs became vehicles for refinancing mortgage-backed securities (MBS).Lepke, Lins and Pi card, ''Mortgage-Backed Securities'', §5:15 (Thomson West, 2014). Like other private label securities backed by assets, a CDO can be thought of as a promise to pay investors in a prescribed sequence, based on the cash flow the CDO collects from the pool of bonds or other assets it owns. Distinctively, CDO credit risk is typically assessed based on a probability of default (PD) derived from ratings on those bonds or assets. The CDO is "sliced" into sections known as "tranches", which "catch" the cash flow of interest and principal payments in sequence based on seniority. If some loans default and the cash collected by the CDO is insufficient to pay all of its investors, those in the lowest, most "junior" tranches suffer loss ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Geert Rouwenhorst
K. Geert Rouwenhorst is the Robert B. and Candice J. Haas Professor at Yale School of Management and Deputy Director for International Financial Center at Yale. He is also a partner at SummerHaven Investment management. His work has traced the history of mutual funds through 18th century Netherlands. The International Financial Center at Yale also holds the oldest non-defaulted bond in the world. His recent work with Gary B. Gorton has been influential in establishing the idea of commodities as an asset class and has fueled the rise of commodity indices and exchange-traded funds. He has studied the relative performance of futures and the underlying commodities. Degrees *Ph.D. University of Rochester, 1991 *MS University of Rochester, 1988 *BLaw Erasmus University Rotterdam Erasmus University Rotterdam (abbreviated as ''EUR'', nl, Erasmus Universiteit Rotterdam ) is a public research university located in Rotterdam, Netherlands. The university is named after Desiderius Er ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Gary Gorton
Gary Bernard Gorton (born c. 1951) is an American economist who currently serves as the Frederick Frank Class of 1954 Professor of Finance at Yale School of Management. He is known for his theory on the role of repurchase agreements on the 2008 financial crisis. As one of the top economists in the world, Gorton is frequently mentioned as a possible recipient of the Nobel Prize in Economics. Early life Gorton was born to a psychiatrist in Phoenix. He earned a B.A. in Chinese Language and Literature from Oberlin College in 1973. After his undergraduate career, he followed a roundabout path to his current position in academia. He first obtained a M.A. in Chinese Studies from University of Michigan in 1974. He had thought of becoming an actor and even drove a cab in Cleveland. Eventually, he settled in graduate school in economics: he earned a M.A. in Economics from Cleveland State University in 1977 and a M.A. in Economics from the University of Rochester in 1980. He earned his Ph. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Commodity Futures
In finance, a futures contract (sometimes called a futures) is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The asset transacted is usually a commodity or financial instrument. The predetermined price of the contract is known as the ''forward price''. The specified time in the future when delivery and payment occur is known as the ''delivery date''. Because it derives its value from the value of the underlying asset, a futures contract is a derivative. Contracts are traded at futures exchanges, which act as a marketplace between buyers and sellers. The buyer of a contract is said to be the long position holder and the selling party is said to be the short position holder. As both parties risk their counter-party reneging if the price goes against them, the contract may involve both parties lodging as security a margin of the value of the contract with ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Commodity Indices
A commodity price index is a fixed-weight index or (weighted) average of selected commodity prices, which may be based on spot or futures prices. It is designed to be representative of the broad commodity asset class or a specific subset of commodities, such as energy or metals. It is an index that tracks a basket of commodities to measure their performance. These indexes are often traded on exchanges, allowing investors to gain easier access to commodities without having to enter the futures market. The value of these indexes fluctuates based on their underlying commodities, and this value can be traded on an exchange in much the same way as stock index futures. Investors can choose to obtain a passive exposure to these commodity price indices through a total return swap or a commodity index fund. The advantages of a passive commodity index exposure include negative correlation with other asset classes such as equities and bonds, as well as protection against inflation. The disadvan ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Kinder Morgan
Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. The company specializes in owning and controlling oil and gas pipelines and terminals. Kinder Morgan owns an interest in or operates approximately of pipelines and 143 terminals. The company's pipelines transport natural gas, liquefied natural gas, ethanol, biodiesel, hydrogen, refined petroleum products, crude oil, carbon dioxide, and more. Kinder Morgan also stores or handles a variety of products and materials at their terminals such as gasoline, jet fuel, ethanol, coal, petroleum coke, and steel. The company has approximately of natural gas pipelines and is the largest natural gas pipeline operator in the United States, moving about 40 percent of the natural gas consumed. The company previously had built a major presence in Canada with the Trans Mountain pipeline, but that infrastructure is now publicly owned and operated. The company's division traditionally provides carbon dioxi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
London City Airport
London City Airport is a regional airport in London, England. It is located in the Royal Docks in the Borough of Newham, approximately east of the City of London and east of Canary Wharf. These are the twin centres of London's financial industry, which is a major user of the airport. The airport was developed by the engineering company Mowlem in 1986–87. In 2016 it was bought by a Canadian-led consortium of Alberta Investment Management Corporation (AIMCo), OMERS, the Ontario Teachers' Pension Plan and Wren House Infrastructure Management of the Kuwait Investment Authority. London City Airport has a single long runway, and a CAA Public Use Aerodrome Licence (Number P728) that allows flights for the public transport of passengers; this licence also allows training flights, but only for the purpose of training pilots to operate at this specific airport. Only multi-engine, fixed-wing aircraft up to Airbus A318 size with special aircraft and aircrew certification to fly ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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