新东方在线考博频道给大家整理的相关内容,希望能够对大家的考博考试备考有所帮助,更多有关考博的备考内容,欢迎随时关注新东方在线考博频道。
Controled bleeding or cauterisation? That was the unappealing choice facing UBS, a Swiss bank which has been badly hurt by the carnage in America’s mortgage market. The bank opted for the latter. First it opened the wound, by announcing a hefty $10 billion write-down on its exposure to subprime-infected debt. UBS now expects a loss for the fourth quarter, which ends this month. Then came the hot iron: news of a series of measures to shore up the bank’s capital base, among them investments from sovereign-wealth funds in Singapore and the Middle East.
Bad news had been expected. UBS’s third-quarter write-down of over SFr4 billionin October looked overly optimistic compared with more aggressive markdowns at other banks such as Citigroup and Merrill Lynch. Steep falls in the market value of subprime debt since the end of the third quarter made it certain that UBS would take more pain, given its sizeable exposure to toxic collateralised-debt obligations (CDOs). Analysts at Citigroup were predicting in November that write-downs of up to SFr14 billion were possible.
Why then did this new batch of red ink still come as a shock? The answer lies not in the scale of the overall loss, more in UBS’s decision to take the hit in one go. The bank’s mark-to-model approach to valuing its subprime-related holdings had been based on payments data from the underlying mortgage loans. Although these data show a worsening in credit quality, the deterioration is slower than mark-to-market valuations, which have the effect of instantly crystallising all expected future losses.
Thanks to this gradualist approach, UBS had been expected to take write-downs in managed increments of SFr2 billion-3 billion over a period of several quarters. It now appears that the bank has incorporated market values into its model, sending its fourth-quarter write-downs into orbit. The change of approach may be on the advice of auditors and regulators but it is more likely to reflect a desire by UBS’s bosses to avoid months of speculation about the bank’s exposure, something that Marcel Rohner, the chief executive, described as “distracting”.
In a particular indignity for a bank long associated with conservatism, concerns about the level of UBS’s capital ratio had even started to surface. Hence the moves to strengthen its tier-one capital, an important measure of bank solidity, by SFr19.4 billion, a great deal more than the write-down. The majority of that money will come from sovereign-wealth funds, the white knights of choice for today’s bank in distress. Singapore’s GIC, which manages the city-state’s foreign reserves, has pledged to buy SFr11 billion-worth of convertible bonds in UBS; an unnamed Middle Eastern investor will put in a further SFr2 billion. UBS will also raise money by selling treasury shares, and save cash by issuing its 2007 dividend in the form of shares. Its capital ratio is expected to end up above 12% in the fourth quarter, a strong position.
Hopeful talk of lines being drawn under the subprime crisis has been a feature of banks’ quarterly reporting since September. Marrying bigger-than-expected write-downs with bigger-than-expected boosts to capital looks like the right treatment in this environment. But UBS still cannot be sure that its problems are over. Further deterioration in its subprime asset values is possible; the broader economic impact of the credit crunch is unclear; and the damage to the bank’s reputation cannot yet be quantified. The patient still needs watching.
1. The author uses the metaphor “hot iron” to imply that_____
[A] UBS again becomes a victim of America’s mortgage market.
[B] UBS’s capital base has obtained adequate financial support to digest its debt.
[C] those measures will forcefully stop UBS from further loss.
[D] good news from those measures would prevent UBS from bankruptcy.
2. Compared with the mark-to-market valuations, the mark-to-model approach could _____
[A] slow down the worsening in credit quality.
[B] present the effect of instantly crystallization of all expected future loss.
[C] show data against a worsening the credit quality.
[D] accelerate the deterioration in credit quality.
3. The reason that Marcel Rohner thought the change of approach was “distracting” is _____
[A] this change was unexpected to take place in such a situation.
[B] this change was result of the advice of auditors and regulators.
[C] this change was not favorite to UBS’s speculation about the bank’s exposure.
[D] this change was taken to make people dispel their guess.
4. The phrase “the white knights” (Line 4, Paragraph 5) most probably means____
[A] rich people.
[B] wealthy saviors.
[C] generous investors.
[D] brave fighters.
5. The author’s attitude towards UBS’s future is______
[A] optimistic.
[B] pessimistic.
[C] uncertain.
[D] none of the above.
答案:CADBC
以上就是新东方在线考博频道给大家整理的相关内容,希望对大家有所帮助,更多备考内容,欢迎随时关注新东方在线考博频道。
2022考博精选好考,点击图片查看详情!
资料下载
【必看】考博英语词汇10000例精解
发布时间:2020-09-02关注新东方在线服务号
回复【10000】免费获取
医学考博英语作文核心基础词汇整理
发布时间:2020-04-15关注新东方在线服务号
回复【医学考博】获取
医学考博英语阅读理解练习资料
发布时间:2020-04-15关注新东方在线服务号
回复【医学考博】获取
法学考博英语高频词汇word版
发布时间:2020-04-15关注新东方在线服务号
回复【医学考博】获取
医学博士英语统考真题及解析
发布时间:2019-12-26关注新东方在线服务号
回复【考博真题】获取
全国医学博士外语统一考试真题
发布时间:2019-12-26关注新东方在线服务号
回复【考博真题】获取
中科院考博英语复习备考实战经验分享
发布时间:2019-12-26关注新东方在线服务号
回复【考博经验】获取
中科院考博英语真题练习资料
发布时间:2019-12-26关注新东方在线服务号
回复【考博真题】获取
关注新东方在线服务号
关注新东方在线服务号,
免费获取考博必看干货资料
推荐阅读
新东方在线考博频道给大家整理的相关内容,希望能够对大家的考博考试备考有所帮助,更多有关考博的备考内容,欢迎随时关注新东方在线考
新东方在线考博频道给大家整理的相关内容,希望能够对大家的考博考试备考有所帮助,更多有关考博的备考内容,欢迎随时关注新东方在线考
新东方在线考博频道给大家整理的相关内容,希望能够对大家的考博考试备考有所帮助,更多有关考博的备考内容,欢迎随时关注新东方在线考
新东方在线考博频道给大家整理的相关内容,希望能够对大家的考博考试备考有所帮助,更多有关考博的备考内容,欢迎随时关注新东方在线考
新东方在线考博频道给大家整理的相关内容,希望能够对大家的考博考试备考有所帮助,更多有关考博的备考内容,欢迎随时关注新东方在线考
来源 : 网络 2021-08-11 15:46:00 关键字 :
考博好课推荐
基础薄弱,备考迷茫,送纸质资料
价格 : ¥2280元
资深教师,教学简明,直接有效!
价格 : 0元
资料下载
关注新东方在线服务号
回复【10000】免费获取
关注新东方在线服务号
回复【医学考博】获取
关注新东方在线服务号
回复【医学考博】获取
关注新东方在线服务号
回复【医学考博】获取
关注新东方在线服务号
回复【考博真题】获取
关注新东方在线服务号
回复【考博真题】获取
关注新东方在线服务号
回复【考博经验】获取
关注新东方在线服务号
回复【考博真题】获取
阅读排行榜
相关内容