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Bond Rating Amount in million Risk weights for CAR (APRA APS 120) RWA in $m for the bank buying the whole tranche Aaa $ 30

Bond Rating

Amount in million

Risk weights for CAR

(APRA APS 120)

RWA in $m for the bank buying the whole tranche

Aaa

$ 30

20%

Aa1

$ 20

20%

Aa2

$ 10

20%

Aa3

$ 5

20%

A1

$ 5

50%

A2

$ 5

50%

A3

$ 5

50%

Baa1

$ 5

100%

Baa2

$ 5

100%

Baa3

$ 5

100%

Ba1

$ 5

350%

Total

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m. However, if it does the deal e. If Clever Bank keeps all its loans on its balance sheet, its RWA would be exactly $ with Quick Money its RWA would be $ m. This is an capital management point of view. Did the actual riskiness of the assets change? (advantage/disadvantage) for a

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