…account. MBS X is currently valued on the fund manager’s books at 20% of its original value, or $20 per bond, for a total of $20 million. The fund manager…

…in terms of the dollar (or numeraire) good value of the change to each individual and then add up these amounts. The advantage is that this gives a number so…

…I’ve noted before, B-S is specifically INappropriate for this exercise, as it will overvalue the option. And therefore anyone suggesting the toxic [“legacy”] assets should be priced—or carried on their…

…do own assets which will generate revenue whose present value (at some reasonable interest rate) is equal to the present value of their liabilities, they are called “illiquid but not…

…Consumer Price Index $2,811.66 using the GDP deflator $3,891.74 using the value of consumer bundle $3,296.90 using the unskilled wage $5,013.86 using the nominal GDP per capita $6,805.40 using the…

…of 1997. Let’s begin with the former, which was classified as “Exogenous; Deficit-driven” and which the Romers assign a Present Value of $24.85 billion in 1982Q3. We’re told by the…

Robert Waldmann Brad DeLong boldly attempts to exhaustively list the factors which can affect the value of a fixed income asset. This is some Mac generated i document and I…

…“mortgage modification” program (i.e., reducing the principal on your loan to not more than 90% of the current market value) is an onerous task: He was hoping he could qualify…

…figure labeled “Current value under Both”. That’s the figure if you had just left your money in the market the whole time regardless of party affiliation. Notice that it’s much…

…When the value of assets held by banks falls, the difference assets minus debt declines. Capital requirements imply that banks must reduce their total debt by selling assets and paying…