GLOBAL FINANCIAL CRISIS (Presentation for Arabia Insurance Board)
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Pool of financial assets
CDO’s
SIV and SPV
CBO’s
Hedged funds
CLO’s
etc.
ABS’s
Move assets off-balance sheet Free capital for new business Acceleration of lending cycle Credit Multiplier and increased leverage
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LACK LACKOF OF LIQUIDITY LIQUIDITY
INTEREST RATES RATES INTEREST
LOSS OF CONFIDENCE
DECLINE DECLINE IN INSHARE SHARE PRICES PRICES
TIGHTER TIGHTER CREDIT CREDIT TERMS TERMS © Deloitte & Touche 2008. All rights reserved.
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