Before defining the term securitization we need to distinguish between the securitization and the disintermediation terms. Gardener and Revell (1988) stated that they have huge zone of intersection whereas each is on a diverse phenomenon. Disintermediation is the opposite of direct funding where the facilities of an intermediary are given up and the borrowers and investors transact directly with each other. The connection between both terms appears when the direct funding is undertaken in terms of
Securitization and Human Society in Australia: Climate Change Versus Undocumented Migration Introduction States exist to protect their citizens from all security threats. To insure security, states have devised various machineries that facilitate response to insecurity with urgency. Australia is no different. The state has the constitutional mandate to secure its people. Australians have legitimate expectation that their government will protect them from any actor that threatens their survival. Yet
An Analysis of Grand Strategy through the Lens of Neo-Security Complex Theory Barry Buzan, Ole Waever, and Jaap de Wilde attempt to structure a fundamentally new approach to the study of security issues by attempting to incorporate traditional notions of security analysis into a broader understanding of international security that incorporates non-military threats. Their neo-security complex theory does provide substantive insight into how the process of securitizing issues occurs and how one can
Off-balance sheet accounting boils down to the simple question: should the sponsoring entity consolidate or not? From the 1980s to the 1990s it was common for sponsoring companies to avoid consolidations despite the fact that they maintained control of assets of special purpose entities (SPEs). Ultimately, this allowed sponsoring companies to hide losses and debt from their own financial statements. From a principles-based view, companies should have to report the assets of a SPE on their financial
environmental vs. security perspective and argue that the role that the securitization of climate change as an environmental security threat to Australia in the 21st century has played, has afforded the government opportunity to ballyhoo climate change as a pressing security issue, though in doing so it has come at the detriment of traditional environmentally derived climate change priorities. The role which the securitization of the issue has played in identifying climate change as an environmental
Security and memory Introduction The aim of this essay is to explore how national identity and history are treated as problems of security and why collective remembrance is sometimes securitised in public policy. My referent object is therefore collective memory; by 'memory' I mean a discursive strategy of remembering the past that is implemented by political actors. I draw mainly on Anthony Giddens, Alexander Wendt, Brent Steele, Jennifer Mitzen and Maria Mälksoo to show that in addition to physical
'The 'human' as referent object? Humanitarianism as securitization' is an interesting piece written by Scott Watson of the University of Victoria in Canada's political science department and is primarily a sociological piece versus what could have been, as in, looking at the issues of securitization through a more International Relations focused view. Watson is clear from the outset in what he wants to achieve in this article; he wants to contend that humanitarianism has the power to legitimise
Lehman Brothers Holding Inc in 2008. The driven force of this financial crisis is securitization. Securitization increases the equity of the market because “Securitization is the process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors” (Investopedia). The disadvantage of
General Motors, like any other business, is exposed to interest rate risks related to certain financial instruments, primarily debt, capital lease obligations and certain marketable securities. As per the GM audited financial statements for 2014, it states “we did not have any interest rate swap positions to manage interest rate exposures in our automotive operations. At December 31, 2014 and 2013 the fair value liability of debt and capital leases was $9.8 billion and $6.8 billion. The potential
cash provided by operations, long-term secured and unsecured borrowings, issuances of debt and equity securities, asset-backed securitizations, property dispositions and joint venture transactions. They have financed our operations and acquisitions to date through the issuance of equity securities, borrowings under their credit facilities and asset-backed securitizations. Going forward, they expect to meet their operating liquidity requirements generally through cash on hand and cash provided by
the Great Depression in 1929 (Financial crisis of 2007-2008, 2018). The Crash was caused by some main factors such as deregulation, carelessness of financial institutes and investors, the out-of-control growth of subprime loans and mortgages, securitization (What Caused the 2008 Global Financial Crisis, 2018). It brought a lot of negative impacts to the United States’ economy and the world’s economy. Many countries were affected, billion people lost jobs and money, led to the drop of global’s productivity
What do you understand by the term ”securitisation” of bank loans, and why might a bank choose to securitise some of its loans? Securitization dates back to the late 20th century when the U.S. Department of Housing and Urban Development created the first modern residential mortgage-backed security . The term securitisation refers to the transformation of illiquid, non-marketed assets into liquid, marketable assets, i.e. securities. It is a product of financial innovation, an instrument that aims
one of the main causes of insecurity, during the last years far more people have been killed by their own governments than by foreign armies. Scott Watson reconceptualise humanitarianism as a sector of security expanding the applicability of securitization theory beyond states and societies to human as referent objects, and has its procedures and logic. An existential threat to the referent object, as human life or dignity, can vary greatly depending on the security actor, it can be poverty, but
The stock market has proved itself to be a lucrative asset for making money for a broad spectrum of people across the world. People have entrusted their time and money in the stock market since May 17, 1792. In this article I will go over the rise and fall of the markets and how they can be caused by several different things. In this article I will cover one very big contributing factor in the fall of the financial sector in 2008; I will talk about what drives the markets, and also a few things that
Many people today would consider the 2008, United States financial crisis a simple “malfunction” or “mistake”, but it was nothing close to that. Contrary to what many believe, renowned economists and financial advisors regarded the financial crisis of 2007 and 2008 to be the most devastating crisis since the Great Depression of the 1930’s. To make matters worse, the decline in the economy expanded nationwide, resulting in the recession of 2007 to 2009 (Brue). David Einhorn, CEO of GreenHorn Capital
such as bonds, safety deposit accounts which earns interest, savers, and other credit facilities. THE REASONS THAT CAUSED BANK DISINTERMEDIATION. Bank disintermediation could be caused by a couple of reasons with one of which could be securitization. Securitization is the process whereby illiquid assets are turned to liquid assets and convertibles. This conversion allows the assets to sell in the capital markets. It can be applied to short term financing, where bank loans have been transformed into
Externalities are defined as positive or negative impacts and consequences that non-related parties face due to an economic activity in a compact and comprehensive manner. The nature of the externality can be determined by the nature of activity and the consequences that third parties face. Negative externalities distort the market in various manner for example the polluters make decisions only on the direct costs and they never consider indirect costs and as a result because the polluter is not
Implications and Dangers While it is, in fact, possible for migration to become a threat to security, it is crucial, as Hammerstad (2008) notes, to realize that the issue of forced migration can easily “become over-securitised to where it is in danger of creating threats where before there were none, while at the same time undermining the international refugee protection regime in the name of [a] claim to ‘security needs’” (pp. 1-2). As the way in which we perceive and understand an issue affects
shown an occurrence that the task before us is not easy while they are up against all odds. But before we start to take a look into the recent issues of cyber privacy, we must answer the questions in regards of how should we analysis the cyber securitization via critical security aspects? Traditional Security studies argues that the national security is essential to all citizens, because that in a anarchy and competitive arm force battle, only when the country is secured, the people will therefore
Financial crisis The financial crisis occurred in 2008, where the world economy experienced the most dangerous crisis ever since the Great Depression of the 1930s. It started in 2007 when the home prices in the U.S. Dropped significantly, spreading very quickly, initially to the financial sector of the U.S. and subsequently to the financial markets in other countries. The victims in the United States were: the largest commercial banks, the whole investment banking industry, the major savings