EMERGENCE AND GROWTH OF STRUCTURED FINANCE IN MALAYSIA

α
dr._ravindran_ramasamy
dr._ravindran_ramasamy
σ
Dr. RAVINDRAN RAMASAMY
Dr. RAVINDRAN RAMASAMY
ρ
GANISEN SINNASAMY
GANISEN SINNASAMY
Ѡ
MOHD HANIF MOHD HELMI
MOHD HANIF MOHD HELMI
α to σ Universiti Tun Abdul Razak

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EMERGENCE AND GROWTH OF STRUCTURED FINANCE IN MALAYSIA

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Abstract

Global financial crisis threatens the genuine investors and institutional investors who have parked their funds in financial assets. The developing countries follow the models and financial products especially the structured products the developed countries introduce and trade in their countries’ capital markets. Malaysia also has introduced these financial products in Bursa Malaysia and allowed trading. In this article we try to trace the growth of these products both in Islamic and conventional segments of capital market. Our aim is to give an over view of the different kinds of structured products, their features and differences among them. We point out the inherent risks in these products and how it is difficult to quantify when they are not based on cash flows and reference portfolio of assets. We caution the regulatory bodies to be vigilant about exotic structured products such as synthetic CDOs and CDO2 which are highly unreliable and not based on any underlying and cash flows.

References

6 Cites in Article
  1. Abel Elizalde (2006). Credit Risk Models IV: Understanding and Pricing CDOs.
  2. Donald L Kohn (2008). Ratings in structured finance: what went wrong and what can be done to address shortcomings?.
  3. Jean-Paul Laurent,Jon Gregory (2003). Basket default swaps, CDOs and factor copulas.
  4. S Merino,M Nyfeler (2002). Calculating Portfolio Loss.
  5. St,M Pierre,E Rousseau (2004). Valuing and Hedging Synthetic CDO Tranches using Base Correlations.
  6. O Vasicek (2002). Loan Portfolio Value.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

dr._ravindran_ramasamy. 1970. \u201cEMERGENCE AND GROWTH OF STRUCTURED FINANCE IN MALAYSIA\u201d. Unknown Journal GJMBR Volume 11 (GJMBR Volume 11 Issue 3): .

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March 12, 2011

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Global financial crisis threatens the genuine investors and institutional investors who have parked their funds in financial assets. The developing countries follow the models and financial products especially the structured products the developed countries introduce and trade in their countries’ capital markets. Malaysia also has introduced these financial products in Bursa Malaysia and allowed trading. In this article we try to trace the growth of these products both in Islamic and conventional segments of capital market. Our aim is to give an over view of the different kinds of structured products, their features and differences among them. We point out the inherent risks in these products and how it is difficult to quantify when they are not based on cash flows and reference portfolio of assets. We caution the regulatory bodies to be vigilant about exotic structured products such as synthetic CDOs and CDO2 which are highly unreliable and not based on any underlying and cash flows.

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EMERGENCE AND GROWTH OF STRUCTURED FINANCE IN MALAYSIA

Dr. RAVINDRAN RAMASAMY
Dr. RAVINDRAN RAMASAMY Universiti Tun Abdul Razak
GANISEN SINNASAMY
GANISEN SINNASAMY
MOHD HANIF MOHD HELMI
MOHD HANIF MOHD HELMI

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