The webinar conducted by Pristine for FRM Part II candidates on Credit Risk in the month of August 2011, for launching it’s 2011 batch. Pristine has a laudable record of a 90% pass percentage in it’s last FRM Part II batch.

Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors. Creditors may file a bankruptcy petition against a debtor (“involuntary bankruptcy”) in an effort to recoup a portion of what they are owed or initiate a restructuring. In the majority of cases, however, bankruptcy is initiated by the debtor (a “voluntary bankruptcy” that is filed by the insolvent individual or organization).

Join us for a FREE Webinar on July 25 FRM and PRM are a premier certification in the area of risk management. It tests the candidate

GARP www.garp.com, FRM Exam is to be held on November 20, 2010. The registeration for the exam is started from 1st June, 2010.
This time GARP has introduced a new exam format, with the exam consisting of two parts. Both the parts have different format and structure in terms of fees, syllabus and topics covered. Passing in the first part is mandatory for level 2 to be graded. If a candidate fails in part 1, part 2 will not be graded. Hence, next time if the candidate re registers he has to enroll for both the parts.
Part1 Details -
Total Number of Questions 100 MCQ’s,
Time 4 hour
topics with weightage
Foundation of Risk Management 20%
Quantitative Analysis 20%
Financial Markets and Products 30%
Valuation and Risk Models 30%

What is a bond?
A bond is a fixed interest financial asset issued by governments, companies, banks, public utilities and other large entities. Bonds pay the bearer a fixed amount a specified end date. A discount bond pays the bearer only at the ending date, while a coupon bond pays the bearer a fixed amount over a specified interval as well as paying a fixed amount at the end date.
What are Double-barreled bonds?
A revenue bond issued by a municipal or state authority that is guaranteed by the overlying municipal or state authority.
For example, if a transport authority for a state issues a bond, in the event of a revenues from the transport authority are not enough to pay back the bond, the state government would use its tax revenues to make the interest and principal payments.
So, for these bonds, the cash flows are pledged by two distinct entities. The First entity is under obligation to make interest payments, whereas the other owes the principal payments.
These are municipal general obligation (GO) bonds as in contrast to revenue bonds because they are backed by the issuer and its taxing authority.

Embedded Options It is common to grant issuers and bondholders an option to take an action against the other party regarding the owed money, either with the principal or the coupons. Such options have a significant effect on the behaviour of the bond price because of the potential modification of the cash flows that the action may cause. Although not explicitly priced in the market, the options carry implicit economic value and are reflected in the prices of the bonds. These options are known as embedded options.