Upon Further Analysis — Archives
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Understanding Mortgage Servicing Assets
Federal banking regulators have proposed changes to the capital treatment of mortgage servicing assets (MSA) One rationale for this change is to increase mortgage origination and servicing activity by banks, who have lost market share to nonbank entities. What are mortgage servicing assets and what are their risks? And are these proposed changes likely to…
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An Alternative to OPS
On-base plus slugging percentage (OPS) has become a popular metric for evaluating baseball players. OPS has the virtue of being relatively easy to calculate and providing a good general indicator of a player’s offensive production. But OPS also has some methodological flaws that limit its effectiveness. Some simple adjustments to OPS can correct for these…