Black Dictionary of Banking and Finance

							INTERNATIONAL BANKING


THE UNIVERSITY OF WARWICK
   LLM International Economic Law


      Professor Jorge Guira
            GROUP REPORT


1. CREDIT DERIVATIVES;

2. HEDGE FUNDS;

3. STRUCTURED FINANCE;

4. PRIVATE EQUITY;
           METHODOLOGY
A) THE STRATEGY

  INDIVIDUAL RESEARCH AREAS;
  CROSS CHECKING;
  FINAL REPORT;

B) THE RESOURCES

  ACADEMIC JOURNALS;
  PERIODICALS;
  SPECIALIST WEBSITES;
  GOVERNAMENTAL AND REGULATORY RESOURCES;
  MAJOR PLAYERS IN THE MARKET;
        CREDIT DERIVATIVES
 Concept:

        “A financial instrument whose value depends on or is derived from
  performance of a secondary source such as an underlying bond, currency,
  or commodity. Also termed derivative instrument.”
(Black’s Law Dictionary, 5 ed)

      “A credit derivative is a contract (derivative) to transfer the risk of the
 total return on a credit asset falling below an agreed level, without transfer
 of the underlying asset. This is usually achieved by transferring risk on a
 credit reference asset. Early forms of credit derivative were financial
 guarantees. Some common forms of credit derivatives are credit default
 swap, total return swap and credit linked note.” (Wikipedia)
                    HEDGE FUNDS
   Concept:
    “A specialized investment group, usually organized as a limited partnership
   or off-shore investment company – that offers the possibility of high returns
   through risky techniques such as selling short or buying derivatives. Most
   Hedge Funds are not registered with SEC and are therefore restricted in
   marketing their services to the public.” (Black’s Law Dictionary, 5 ed)

   “A hedge fund is a private investment fund charging a performance fee and
   typically open to only a limited number of investors, e.g., those in the United
   States, hedge funds are largely open to accredited investors only. Hedge
   Funds have grown in size and influence on the public securities and private
   investment markets and are not currently subject to any direct regulation by
   the SEC, the NASD, or other federal regulating commissions, unlike mutual
   funds, pension funds and insurance companies.” (Wikipedia)
Note:
There is no exact definition to the term “hedge fund”, it is undefined in federal
   or state securities laws.
    STRUCTURED FINANCE
Concept:

      “Makeup of the right-hand side of a company's Balance Sheet which
includes all the ways its assets are financed, such as trade accounts
payable and short-term borrowings as well as long-term debt and ownership
equity. Financial structure is distinguished from Capital Structure which
includes only long-term debt and equity. A company's financial structure is
influenced by a number of factors, including the growth rate and stability of
its sales, its competitive situation (i.e., the stability of its profits), its asset
structure, and the attitudes of its management and its lenders. It is the basic
frame of reference for analyses concerned with financial leveraging
decisions.” (Dictionary answer)

   “A service offered by many large financial institutions for companies with
very unique financing needs.Structured finance generally involves highly
complex financial CBOs and syndicated loans are examples of structured
finance. transactions.” (Investopedia)
             PRIVATE EQUITY
Concept:

   “A private placement raises funds by allowing outside private investors to
purchase shares in the firm.” (Black’s Law Dictionary, 5 ed)

   “Private equity is a broad term that refers to any type of equity
investment in an asset in which the equity is not freely tradable on a public
stock market. Passive institutional investors may invest in private equity
funds, which are in turn used by private equity firms for investment in target
companies. Categories of private equity investment include leveraged
buyout, venture capital, growth capital, angel investing, mezzanine capital
and others. Private equity funds typically control management of the
companies in which they invest, and often bring in new management teams
that focus on making the company more valuable.” (Wikipedia
Encyclopedia)
                 TOP WEBSITES
       Bloomberg
http://www.bloomberg.com

       Lexis Nexis
http://global.lexisnexis.com/us

       US Government official website on the Securities Exchange
       Commission
http://www.sec.gov

       EU official documents on the Prospectus Directive and related
       matters.
http://ec.europa.eu/internal_market/securities/prospectus/index_en.htm

     Roubini Global Economics
www.rgemonitor.com
   Social Science Research Network
http://www.ssrn.com/

  Hedge Fund Association
www.thehfa.org

    Hedge Funds Website
http://www.hedgeworld.com/sp_directory/index.cgi?jur=4

    Hedge Funds Website
http://www.hedgefundsreview.com/public/showPage.html?page=250885

    Private Equity website
http://www.privateequityinfo.com/?gclid=CLTx7rerrooCFSGQEAod8R_ppg
               TOP ARTICLES
The Decline and Semi-Recovery of The Latin Derivatives Market , By Nina
Mehta
http://www.derivativesstrategy.com/magazine/archive/1999/0999fea4.asp

Viral V Acharya, London Business School (LBS) and CEPR; Timothy C
Johnson, London Business School (LBS) and CEPR.
http://www.cepr.org/pubs/new-dps/dplist.asp?dpno=5180

Private Equity in Latin America: Strategies for Success, by Alyssa A.
Grikscheit (Goodwin Procter)
http://216.239.59.104/search?q=cache:mbjuV6Y9e8YJ:www.goodwinprocte
r.com/getfile.aspx%3Ffilepath%3D/Files/publications/grikscheit_a_6_05.pdf
+private+equity+funds+in+Latin+America&hl=en&ct=clnk&cd=1&gl=uk

Understanding AlternativeInvestments: A Primer on Hedge Fund Evaluation
http://www.vanguard.com.au/library/pdf/RL_Hedge_Fund_Evaluation_P01%
2005.pdf

Optimal Disclosure and Operational Risk: Evidence from Hedge Fund
Registration http://papers.ssrn.com/sol3/papers.cfm?abstract_id=918461
Implications of the Growth of Hedge Funds
http://www.sec.gov/news/studies/hedgefunds0903.pdf

Hedging Your Bets: A Heads Up on Hedge Funds and Funds of Hedge Funds
http://www.sec.gov/answers/hedge.htm

Securities and Exchange Commission (2007)The role of the hedge funds in the US
market
http://www.treas.gov/press/releases/js4264.htm

The United States Department of the Treasury (2006)SEC Proposes New Rules
Affecting Private Equity Sponsors (Weil, Gotshal & Manges)
http://www.weil.com/wgm/pages/Controller.jsp?z=r&sz=nl&db=wgm/cwgmpubs.nsf&d
=A3C6376D38B4546D8525726700613342&v=Private%20Equity%20Alert&f=a20070
1

The regulation, taxation and distribution of hedge funds in Europe: Changes and
challenges (PricewaterhouseCoopers 2006)
http://www.pwc.com/extweb/pwcpublications.nsf/dfeb71994ed9bd4d8025714900308
62f/ea8e7a7f4b061fb8802572250040b6e2/$FILE/ATTMS0V6/TheRegulation,Taxatio
n,DistributionOfHedgeFunds-2006.pdf
          Group members

Anas Makhdoom
Digish Rawal
Fernando Locatelli
Wei Sun (Henry)
Mahesh Kumar
Miguel Lacerda
Natalie Karytinos
Rodrigo C. do Vale
Joshua
Jun Liao
Thank you very much for your attention!