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Partial Credit Guarantees Discussions
Partial Credit Guarantees Discussions

First Bankers` Banc Securities, Inc.
First Bankers` Banc Securities, Inc.

... Level 1 – Inputs that utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 – Inputs that include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or ...
FREE Sample Here - We can offer most test bank and
FREE Sample Here - We can offer most test bank and

... FIs began lowering their credit quality cut-off points. Moreover, to boost their earnings, in the market now popularly known as the “subprime market,” banks and other mortgage-supplying institutions often offered relatively low “teaser” rates on adjustable rate mortgages (ARMs) at exceptionally low ...
Trade Log March 2016 - Cougar Global Investments
Trade Log March 2016 - Cougar Global Investments

Lecture / Chapter 3
Lecture / Chapter 3

for Financing by Seconds of Radio–TV Advertisements
for Financing by Seconds of Radio–TV Advertisements

... contract with originator (IRIB) on exercising date of securities. 5- If the seconds of advertisement are considered as copyright and transferred to investors in form of Manfa’ah transaction or Manfa’ah reconciliation, there would be no kind of ownership and investors would only have the right to tra ...
Central Bank of Egypt Credit Risk
Central Bank of Egypt Credit Risk

... higher the risk of negative credit event (default, etc), the higher the interest rate investors will demand for assuming that risk. • •Private rating agencies (Moody’s and Standard & Poor’s) provide guidance for investors to the credit quality of various issues. ...
CREF Money Market
CREF Money Market

... or other borrower may not be able to make timely principal, interest, or settlement payments on an obligation. In this event, the issuer of a fixed-income security may have its credit rating downgraded or defaulted, which may reduce the potential for income and value of the portfolio. Income: The in ...
slides
slides

Compared to U.S. Treasury investors, should U.S. Agency MBS
Compared to U.S. Treasury investors, should U.S. Agency MBS

... Sources: Amundi SB calculations, based on data from Bloomberg Indices. crisis. Although U.S. Agency Mortgages suffered no credit or liquidity issues, all spread assets dramatically underperformed U.S. However, excess returns are not free. This performance advantage Treasuries due to the massive flig ...
Bank Loans vs. Global High Yield
Bank Loans vs. Global High Yield

... the portfolio management services, research and other resources of Brandywine Global Investment (Europe) Limited, an affiliate. Fixed income securities are subject to credit risk and interest rate risk. High yield, lower-rated, fixed income securities involve greater risk than investment-grade fixed ...
Mini Case (p.45) A. Why is corporate finance important to all
Mini Case (p.45) A. Why is corporate finance important to all

Securities Markets
Securities Markets

here - BudgetWhys IDA
here - BudgetWhys IDA

... How to open and maintain a bank account Briefly describe two types of deposit accounts ...
AOFM Normal Template - The Australian Office of Financial
AOFM Normal Template - The Australian Office of Financial

... While this method shows the amounts involved in a common currency, the cost in Australian dollars of meeting the various obligations will differ from ...
chap008-- - MCST-CS
chap008-- - MCST-CS

... strategies that one can use. To give an example, one may take a long position on a security and then sell short the same or a similar security. This means that one will profit (or at least avoid a loss) no matter which direction the security's price takes. Hedging may reduce risk, but it is importan ...
Lecture 11: Real Estate
Lecture 11: Real Estate

... – Debt is incurred a little at a time – Payment schedules are different, can become ever more indebted while paying the minimum amount each month. ...
6. Key Indicators
6. Key Indicators

... • Demonstrates ability to liquidate the firm, cover all liabilities out of all assets, and still have “cash” left over. • Should not exceed 0.50 to minimize financial risk exposure. • Some firms fail however at lower levels. 2. Leverage ratio: • Total debt divided by equity or net worth. • Often a c ...
Reinvestment Risk
Reinvestment Risk

CLOs, CDOs and the Search for High Yield
CLOs, CDOs and the Search for High Yield

... bank loans and for a CDO, a pool of bonds and mortgages. Under a CLO or CDO the investor earns income in the form of interest payments from these debt instruments and is otherwise subject to the gains and losses on those loans over time as their prices change/and or if defaults occur. CLO/CDOs can a ...
How to Predict the Next Fiasco
How to Predict the Next Fiasco

... management and not the shareholders, and thus is more freewheeling with it than a more conservative company is. Enron may be a case in point; its downward spiral into bankruptcy-court protection started as investors focused on nettlesome related-party transactions involving the then-chief financial ...
Efficient Market Theory and the Crisis
Efficient Market Theory and the Crisis

... After the 1982 recession, the U.S. and world economies entered into a long period where the fluctuations in variables such as gross domestic product, industrial production, and employment were significantly lower than they had been since World War II. Economists called this period the "Great Moderat ...
bank loans and private placements
bank loans and private placements

... Generally  no  CUSIP  number Not  subject  to  some  of  the  laws/requirements  designed  to  protect  investors U.S.  Supreme  Court  Case  Reves vs.  Ernst  &  Young,  Inc.,  494  U.S.  56  (1990) ...
A corporate bond maturing in 5 years carries a 10% coupon rate and
A corporate bond maturing in 5 years carries a 10% coupon rate and

... a. What is the after-tax cost of debt, preferred stock and common stock? b. What is the weighted average cost of capital for the firm, if the current capital structure based on market values is the optimal capital structure? 3. (5) Roland & Company has a new management team that has developed an ope ...
Tightest Credit Market in 16 Years Rejects Bernanke`s Bid
Tightest Credit Market in 16 Years Rejects Bernanke`s Bid

... Professionals with established careers whose earnings fluctuate may no longer be considered good credit risks and are having trouble getting conventional financing. This includes self-employed professionals, doctors with their own practices and nurses who cannot show two years with an employer becau ...
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Securitization

Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations (or other non-debt assets which generate receivables) and selling their related cash flows to third party investors as securities, which may be described as bonds, pass-through securities, or collateralized debt obligations (CDOs). Investors are repaid from the principal and interest cash flows collected from the underlying debt and redistributed through the capital structure of the new financing. Securities backed by mortgage receivables are called mortgage-backed securities (MBS), while those backed by other types of receivables are asset-backed securities (ABS).Critics have suggested that the complexity inherent in securitization can limit investors' ability to monitor risk, and that competitive securitization markets with multiple securitizers may be particularly prone to sharp declines in underwriting standards. Private, competitive mortgage securitization is believed to have played an important role in the U.S. subprime mortgage crisis.In addition, off-balance sheet treatment for securitizations coupled with guarantees from the issuer can hide the extent of leverage of the securitizing firm, thereby facilitating risky capital structures and leading to an under-pricing of credit risk. Off-balance sheet securitizations are believed to have played a large role in the high leverage level of U.S. financial institutions before the financial crisis, and the need for bailouts.The granularity of pools of securitized assets can mitigate the credit risk of individual borrowers. Unlike general corporate debt, the credit quality of securitized debt is non-stationary due to changes in volatility that are time- and structure-dependent. If the transaction is properly structured and the pool performs as expected, the credit risk of all tranches of structured debt improves; if improperly structured, the affected tranches may experience dramatic credit deterioration and loss.Securitization has evolved from its beginnings in the late 18th century to an estimated outstanding of $10.24 trillion in the United States and $2.25 trillion in Europe as of the 2nd quarter of 2008. In 2007, ABS issuance amounted to $3.455 trillion in the US and $652 billion in Europe. WBS (Whole Business Securitization) arrangements first appeared in the United Kingdom in the 1990s, and became common in various Commonwealth legal systems where senior creditors of an insolvent business effectively gain the right to control the company.
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