LIABILITIES, LIQUIDITY, AND CASH MANAGEMENT：BALANCING FINANCIAL RISK

"This book provides a very helpful and informative insight into an aspect of finance that has become quite intricate and complex but is nevertheless very fascinating."
—Dr. Henry Kaufman, President, Henry Kaufman & Company, Inc.

Strategies and advice on balancing financial risk for leveraged companies
In today's highly leveraged economy, good liabilities management has become vitally important. Entire sectors of the economy, and some of the biggest financial and industrial companies, face dramatic overexposure problems. But adequate internal liability controls can greatly reduce risk. Featuring case studies in a number of industries and examples of both proper and improper liabilities management in major organizations, Liabilities, Liquidity, and Cash Management shows managers, accountants, investment advisors, and other professionals who deal with liabilities and overexposure how they can implement good internal controls on liability and overexposure. It provides modern tools, critical strategies, and timely advice specifically tailored to the needs of companies facing overexposure and debt risk in a volatile economy.

Topics include:

• Loss of capitalization
• Derivatives
• Risks of globalization
• Sensitivity analysis, gap analysis, stress testing, and value-added solution
• Real-time financial reporting and virtual balance sheets
• Liquidity management
• Money markets, yield curves, and interest rates
• Mismatch risk profiles
• Credit risk
• Risk in the new economy

DIMITRIS N. CHORAFAS, PhD, has worked internationally as an advisor to financial institutions and industrial corporations since 1961. Over 6,000 banking, industrial, and government executives have participated in his seminars worldwide. A former Fulbright scholar, Dr. Chorafas is a graduate of the University of California, Los Angeles; the University of Paris; and the Technical University of Athens.

PART ONE: CHALLENGES OF LIABILITIES MANAGEMENT.

1 Market Bubble of Telecoms Stocks.

2 Downfall of Lucent Technologies, Xerox, and Dot-Coms.

3 Liabilities and Derivatives Risk.

4 Reputational and Operational Risk.

PART TWO: MANAGING LIABILITIES.

5 Assets, Liabilities, and the Balance Sheet.

6 Virtual Balance Sheets and Real-Time Control.

7 Liquidity Management and the Risk of Default.

8 Market Liquidity and the Control of Risk.

PART THREE: CASH MANAGEMENT.

9 Cash, Cash Flow, and the Cash Budget.

10 Cash on Hand, Other Assets, and Outstanding Liabilities.

11 Money Markets, Yield Curves, and Money Rates.

12 Mismatched Risk Profiles and Control by the Office of Thrift Supervision.

PART FOUR: CREDIT RISK, MARKET RISK, LEVERAGE, AND THE REGULATORS.

13 Credit Risk, Daewoo, and Technology Companies.

14 Marking to Market and Marking to Model the Loans Book.

15 Changes in Credit Risk and Market Risk Policies.

16 Summary: Management Blunders, Runaway Liabilities, and Technical Miscalculations Leading to Panics.

Index.