個案總覽

In April 1998, Prime Minister Hashimoto faced serious problems, both with his program of six systemic reforms and with his fiscal policy. Japan had been in effective recession for six years, unable to retain the miracle-growth achieved in earlier decades. Hashimoto has proposed to reform social security, fiscal policy, administration, regulation, education, and especially the financial system. But institutional rigidities--the bureaucracy, labor policies, corporate governance, and the aging population among others--has made change exceedingly difficult.

This case investigates an innovative bond issue by Enron. The coupon on the bond is indexed to the company's credit rating, making it a credit derivative structure.

Introduces the student to the recently developed concept of value-at-risk (VAR) in risk analysis. By working through a stylized example using spreadsheet tools, the student learns the conceptual framework of VAR and its implementation mechanics.

Presents the history and features of credit derivatives, a new class of securities. A stylized problem is also provided.

Spreadsheet Supplement for case 297069.

Spreadsheet Supplement for case 297086.

Spreadsheet Supplement for case 297086