Abstract
At any given time, the value of a loan is determined by the interest rate it carries, current interest rates in the market, and the probability of the loan being repaid. Loan value also reflects the expected value recovered in the case of a default, which in turn is determined by the value of the collateral, and how expensive it would be to realize cash from the pledged asset.1 To properly assess the quality of a loan book, it is therefore necessary to analyze the quality of all collateral.
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© 2014 Gudrun Johnsen
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Johnsen, G. (2014). Market Manipulation and Falsification of Equity. In: Bringing Down the Banking System. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137347350_12
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DOI: https://doi.org/10.1057/9781137347350_12
Publisher Name: Palgrave Macmillan, New York
Print ISBN: 978-1-349-47105-8
Online ISBN: 978-1-137-34735-0
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)