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... secondary market, shares are traded among stock holders. ...
The Causes of the Great Depression
The Causes of the Great Depression

... to control the supply of money – The “Fed” kept the amount of money in the economy high during the 1920s by lowering the discount rate – Discount Rate is the rate of interest a bank pays to borrow money from the government. • Lower rate = more money in supply • Higher rate = less money in supply ...
The Oak Financial Times - Oak Financial Group, Inc.
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... are entering a new market cycle in which the traditional correlations between stocks and bonds has begun to change. No longer will investors be able to rely upon bonds as providing a different and distinct pattern of returns when compared to their equity portfolio. We expect to be able to look back ...
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... Convert “fixed costs” (incurred whether or not a sale is made) to “variable costs” (incurred only when a sale is made)  Outsourcing – reduce capital needs  Universities – expertise, pro bono work  Suppliers – terms, loans, leads, etc.  Factors – advance money, reduce collection risk ...
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Subnational Government Financing
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... A major impediment to the development of subnational credit markets is the moral hazard of explicit or implicit guarantees of a federal government bailout of subnational debt. For this reason, the development of subnational credit markets requires, inter alia, a strict no-bail-out policy for LGBs in ...
Real versus Financial Assets
Real versus Financial Assets

... Financial Markets Informational Role of Financial Markets • If a firm performing well, investors will bid up ,on the other hand, a company’s prospects seem poor, investors will bid down • However, Some companies can be “hot” for a short period of time, attract a large flow of investor capital, and ...
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... • The Savings-and-Loan Crisis: Undiversified portfolios and insecure long-term loans resulted in high risk of failure. A moral hazard problem was created by the government with new loans allowing for additional expansion. • The Credit Crunch of the 90s: Banks lent less than normal with greater requi ...
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... referring clients with disabilities and low income to a network of both public and private providers for medical and non-medical transportation services. The capital component of the grant will fund the day-to-day operation of a one-stop call center that disseminates and coordinates transportation i ...
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Financial Markets - Duluth High School
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Did moral hazard and adverse selection affect CMBS loan quality?
Did moral hazard and adverse selection affect CMBS loan quality?

... underwriting standards as a primary cause • At the same time, CMBS portfolios contain fewer loans, and individual loan characteristics much more transparent. • To what extent does CMBS underwriting quality vary across originator types? – 6 key types characterized by capital and corporate structure ...
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... All of the money in the world will not help if Europe does not change this situation and does not do so immediately. The private sector and private investors will not invest if the conditions for success are not at hand and if they cannot be certain that the companies they invest in have the best ch ...
Stocks Are Not The New Bonds
Stocks Are Not The New Bonds

... a private limited company licensed and regulated by the Hong Kong Securities and Futures Commission (the “SFC”). MIL HK is a wholly-owned, indirect subsidiary of Massachusetts Financial Services Company, a U.S.-based investment advisor and fund sponsor registered with the U.S. Securities and Exchang ...
An enhanced methodology of compiling financial
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“Implications of a Credit Crunch”
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... sheets.” Allow me to explain that notion for the non-bankers here today. Recall that a loan is counted as an asset on a bank’s balance sheet. Banks hold capital in part as a reserve against the possibility that a loan will default. Thus banks attempt to maintain a reasonable ratio of capital to asse ...
Morgan Stanley Dean Witter
Morgan Stanley Dean Witter

... - Comprises 18.5% of total net revenues M&A fees account for 43.8% of total fees Equity Underwriting fees account for 35.7% Debt Underwriting fees account for 20.5% #1 in U.S. announced M&A deals for 2000 #1 in global M&A deals for Q1 of 2001 #1 in European M&A deals for Q1 of 2001 ...
PDF - Marquette Associates
PDF - Marquette Associates

... The past year has been an excellent one for risk assets. On the plus side, investors in spread products reaped strong returns throughout 2012. On the minus side, spreads have tightened significantly, and offer average at best value going forward. Exhibit 1 (next page) shows the difference between th ...
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Syndicated loan

A syndicated loan is one that is provided by a group of lenders and is structured, arranged, and administered by one or several commercial banks or investment banks known as lead arrangers.The syndicated loan market is the dominant way for corporations in the U.S. and Europe to top banks and other institutional financial capital providers for loans. The U.S. market originated with the large leveraged buyout loans of the mid-1980s, and Europe's market blossomed with the launch of the euro in 1999.At the most basic level, arrangers serve the investment-banking role of raising investor funding for an issuer in need of capital. The issuer pays the arranger a fee for this service, and this fee increases with the complexity and risk factors of the loan. As a result, the most profitable loans are those to leveraged borrowers—issuers whose credit ratings are speculative grade and who are paying spreads (premiums or margins above the relevant LIBOR in the U.S. and UK, Euribor in Europe or another base rate) sufficient to attract the interest of non-bank term loan investors. Though, this threshold moves up and down depending on market conditions.In the U.S., corporate borrowers and private equity sponsors fairly even-handedly drive debt issuance. Europe, however, has far less corporate activity and its issuance is dominated by private equity sponsors, who, in turn, determine many of the standards and practices of loan syndication.
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