1. What is the contribution to the credit riskadjusted asset base of the following items under the...

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1. What is the contribution to the credit risk–adjusted asset base of the following items under the Basel II requirements? Under the U.S. capital–assets ratio?

$10 million cash reserves.

$50 million 91-day U.S. Treasury bills.

$25 million cash items in the process of collection.

$5 million U.K. government bonds, AAA rated.

$5 million Australian short-term government bonds, A  rated.

$1 million general obligation municipal bonds.

$40 million repurchase agreements (against U.S. Treasuries).

$500 million one- to four-family home mortgages.

$500 million commercial and industrial loans, BBB  rated.

$100,000 performance-related standby letters of credit to an AAA-rated corporation.

$100,000 performance-related standby letters of credit to a municipality issuing general obligation bonds.

$7 million commercial letter of credit to a foreign, A-rated corporation.

$3 million five-year loan commitment to an OECD government.

$8 million bankers acceptance conveyed to a U.S., AA-rated corporation.

$17 million three-year loan commitment to a private agent.

$17 million three-month loan commitment to a private agent.

$30 million standby letter of credit to back an A-rated corporate issue of commercial paper.

$4 million five-year interest rate swap with no current exposure (the counterparty is a private agent).

$4 million five-year interest rate swap with no current exposure (the counterparty is a municipality).
$6 million two-year currency swap with $500,000 current exposure (the counterparty is a low–credit risk entity).

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