Did you know that PLDT (NYSE: PHI) (PSE: TEL), a regular NYSE equity, is really traded on the PSE? ? I understand that the United States Congress needs to pass laws with more teeth and provide funding for both the United States Securities & Exchange Commission and the U.S. Federal Trade Commission (ie. baby toys). That said the U.S. SEC is ineffective, per example of Sarbanes-Oxley, most Series 7 Licensed Brokers (Citi Smith Barney), etc. have told me that because the rules are so vague Sarbanes-Oxley passed by Congress in the wake of Enron is a joke. I believe that someone whom steals US$5000 from a petty cash box (and I think the amount is actually just above $500, for grand theft, can get 20 years in jail, while U.S. investors are legally manipulated as consumers we always want a larger return. I am tired of being in a global economy that does not respect U.S. investors, yet they list on our stock exchange. I would love to know why Philippine Long Distance (PLDT) (NYSE: PHI) (PSE: TEL) is allowed to list on the NYSE and even recommended by 2008 Wall Street Journal's Smart Money magazine which failed basic due diligence as the Chairman of PLDT has not been on the Wharton Board of Overseers for years which was a major selling point for many people. It seems that this Manuel Pangilinan and the Salim Group (beneficial owners of PLDT) should be checked out and suspended from the NYSE? Philippine Stock Exchange, Inc. ("PSE" or the "Exchange") is a private organization that provides and ensures a fair, efficient, transparent and orderly market for the buying and selling of securities. PSE traces its roots from the country's two former bourses: the Manila Stock Exchange ("MSE") and the Makati Stock Exchange ("MkSE"). Founded in March 1927, the MSE was the first stock exchange in the Philippines and one of the oldest in Asia. Originally housed in downtown Manila, the MSE moved to Pasig City in 1992. The MkSE, on the other hand, was established in May 1963 and became the second bourse to operate in the country. It was based in Makati City, a budding business district during those days. While trading the same listed issues, MSE and MkSE remained separate entities for almost thirty years. December 23, 1992 marked a milestone for the Philippine capital market when the MSE and MkSE were unified to become the PSE. At present, PSE maintains two trading floors -- one in Makati City and another in its head office in Pasig City. Even with two trading floors, PSE maintains a "one-price, one-market" Exchange through the MakTrade System. This is a single-order-book system that tallies all orders into one computer and ensures that these orders match with the best bid/best offer regardless of which floor the orders were placed. MakTrade likewise allows PSE to facilitate the trading of securities in a broker-to-broker market through automatic order and trade routing and confirmation. It also keeps an eye on any irregularity in the transactions with its market regulation and surveillance databases. In June 1998, the Securities and Exchange Commission conferred to the PSE the status of a Self-Regulatory Organization, which allows the PSE to implement its own rules and impose penalties on erring trading participants and listed companies. In 2001, or a year after the Securities Regulation Code of 2000 was enacted, the PSE was reorganized and transformed from a non-stock, member-governed organization into a shareholder-based, revenue-generating corporation. Along with this rebirth came the separation of the Exchange's ownership and trading rights, opening the doors for new market participants. On December 15, 2003, PSE shares were listed by way of introduction. The Philippine Central Depository, established in March 1995, provides the securities settlement system for both debt and equity instruments of the Exchange. Its computerized book-entry-settlement system paved the way for a safe and efficient scripless trading. Assuming the role of settlement coordinator and risk manager for broker transactions as well as administrator of the trade guaranty fund is the Securities Clearing Corporation of the Philippines ("SCCP"). SCCP is the clearing and settlement agency for depository eligible trades in the Exchange. Companies are listed in the PSE on the First Board, Second Board or the Small and Medium Enterprises Board. To help the investing public keep track faster of industry performance, listed companies are classified into the following sectors: Financial, Industrial, Holding Firms, Property, Services, and Mining and Oil. More importantly, PSE has adopted an online daily disclosure system to improve the transparency of listed companies and ensure full, fair, timely and accurate disclosure of material information from all listed companies. To address public demand for speedy access to information on the securities market, the PSE's website,, provides comprehensive market data, stock quotations, dividend declarations, trading activities, and other pertinent information on the PSE, tradin

Financial management question ... plz solve this numerical if u can !? 1.You are an investment banker and have been asked to evaluate a two-year zero coupon bond (face value = $1000) issued by NIKE. After assessing the likelihood of default, you believe the following are accurate assessments: Probability of no default = 0.85 If default occurs, there is a 0.60 probability of renegotiating the debt with a $740 payoff and a 0.40 probability of entering bankruptcy and obtaining a $500 payoff. a.What is the expected Cash flow of this instrument at maturity? (6 points) b.If market interest rate on similar bond is 6%, what is your recommended purchase price? (4 points) c.Assuming that your client buys the debt at your recommended price, what are the possible realized rates of return that your client could experience two years from now? (15 points) (Hint: three realized rates of return) Hint: Part a) is a question dealing with a two-layer weighted average. First, we need use weighted average method to calculate the expected payoff (or expected cash flow) when there is a default. Then, we need use the weighted average, again, to calculate the expected payoff (or expected cash flow) at maturity. Hint: Part b) is a question of bond pricing. Similar as any financial securitys pricing model, well discount the future expected cash flow at an appropriate discount rate. Unlike usual bond pricing question, we have more details of the future expected cash flow at the date of maturity (the answer in part a). In this situation, we need make some adjustments for the bond pricing formula, because we do not expect to get the face value at the date of maturity.

Who really caused the sub-prime crises Democrats? The Subprime Debacle by Dr. Kuni Michael Beasley 30 Years in Gestation The Democrats are doing a lot to try to pin the subprime debacle on the Republicans and the Bush administration. However, there is a long tail to this problem that just happened to pop at this time. Now, for the rest of the story. Definitions first. Fannie Mae is the Federal National Mortgage Association (FNMA), founded in 1938 as a publically traded government sponsored enterprise (GSE) that is stockholder owned that makes loans and issue loan guarantees. Its cousin is Freddie Mac, the Federal Home Loan Mortgage Corporation (FHLMC), founded in 1970 as another GSE created to expand the secondary market for mortgages. Freddie Mac buys individual mortgages on the secondary market, pooled them into packages, and sold them to investors on the open market. The secondary market packaged mortgages as collateral and issues securities called collateralized mortgage obligations (CMO) and collateralized debt obligations (CDO), to reduce the risk of individual loans. CMOs are a separate entity that is the actual legal owner of the mortgages it has in a "pool." CMOs sell bonds to investors based on the value of the mortgages. Investors receive payments based on the increased value of the loans in the pool. The collateral for the bonds are the actual mortgages. CDOs are a separate entity like CMOs, but are more focused on fixed income assets such as, but not limited to mortgages (and can include commercial mortgages and corporate loans). The focus is cash flow and slices (tranches) of these cash flows are sold to investors. The subprime mortgage crisis surfaced first in 2007, but it had been incubating for years, indeed, decades. Though roots can be traced back to the New Deal legislation in the 1930's, the current crisis actually draws its source from the Community Reinvestment Act (CRA) [1977] during the Carter administration that forced banks to lend money to less credit worthy clients. Lending institutions were evaluated to determine if it met the "credit needs of the community" and this was factored into regulatory decisions of the federal government such as applications for facilities, mergers, and acquisitions. Interest in the CRA resurfaced in the Clinton administration when regulations in the CRA (which could be manipulated without any participation of congress) essentially forced institutions to offer loans to higher risk individuals and businesses. The term "Ninja" loans emerged describing high risk loans made to people with No Income, No Job, and no Assets, but completed a particular bank's portfolio sufficient to keep federal regulators off their backs. As access to easy money for high risk borrowers increased, certain institutions began to take advantage of these new opportunities to score fed points and make easy money. Name dropping here: Countrywide began to process, package, and offer investment instruments (CMOs) based on these loans. Revisions to the CRA by the Clinton administration allowed mortgage companies to offer loans without the relative reserve of deposits normally required of banks and other financial institutions. In addition, this allowed for securitization of sub prime mortgages based on the pooling and packaging of cash-flow producing assets into securities that could be sold to investors - with the asset value not tagged to actual value of the property, but to the value of the cash flow produced by the asset held (sounds weird). The first public securitization of CRA loans was started in 1997 by (familiar name) Bear Stearns! Now, let's understand sub-prime loans for a moment. A sub-prime loan is a mortgage offered at a deep discount on interest the first year or two so the borrower could qualify for a larger loan and more expensive house, betting that their economic profile would get better and they could afford large payments later. Adjustable Rate Mortgages (ARMs) are a form of this where the entry rate is low and rises based on certain criteria such as the rates for government securities. Simply put, lenders (not necessarily banks, but more often mortgage companies) offered low cost, low entry rate mortgages to people who would not normally qualify for that amount of debt. These loans were "warehoused" by financial institutions, where a financial institution like Merrill Lynch would set up a separate, but wholly owned mortgage company (First Franklin) to attract loans. Merrill Lynch would retain control of the loans as a "trustee" or "servicer," and derive benefits from fees for "managing" the loans and increase assets by keeping escrow deposits. In turn, these loans would be sold to Fannie Mae or Freddie Mac (who were assumed to guarantee the loans), who, in turn, repackaged them for the secondary market. In 2003 the Bush administration tried to head-off what they saw as a potential crisis by moving the supervision of Fannie Mae and Freddie Mac under a new agency