• Study Resource
  • Explore
    • Arts & Humanities
    • Business
    • Engineering & Technology
    • Foreign Language
    • History
    • Math
    • Science
    • Social Science

    Top subcategories

    • Advanced Math
    • Algebra
    • Basic Math
    • Calculus
    • Geometry
    • Linear Algebra
    • Pre-Algebra
    • Pre-Calculus
    • Statistics And Probability
    • Trigonometry
    • other →

    Top subcategories

    • Astronomy
    • Astrophysics
    • Biology
    • Chemistry
    • Earth Science
    • Environmental Science
    • Health Science
    • Physics
    • other →

    Top subcategories

    • Anthropology
    • Law
    • Political Science
    • Psychology
    • Sociology
    • other →

    Top subcategories

    • Accounting
    • Economics
    • Finance
    • Management
    • other →

    Top subcategories

    • Aerospace Engineering
    • Bioengineering
    • Chemical Engineering
    • Civil Engineering
    • Computer Science
    • Electrical Engineering
    • Industrial Engineering
    • Mechanical Engineering
    • Web Design
    • other →

    Top subcategories

    • Architecture
    • Communications
    • English
    • Gender Studies
    • Music
    • Performing Arts
    • Philosophy
    • Religious Studies
    • Writing
    • other →

    Top subcategories

    • Ancient History
    • European History
    • US History
    • World History
    • other →

    Top subcategories

    • Croatian
    • Czech
    • Finnish
    • Greek
    • Hindi
    • Japanese
    • Korean
    • Persian
    • Swedish
    • Turkish
    • other →
 
Profile Documents Logout
Upload
Firms and Financial Markets
Firms and Financial Markets

... • The securities market allow businesses and individual investors to trade the securities issued by public corporations. – The primary market is a market in which securities are bought and sold for the first time. In this market, the firm selling securities actually receives the money raised. For ex ...
Finanical Crisis Facts
Finanical Crisis Facts

... To create these securities, the investment banks purchased home mortgage loans from the original lenders (originators) and bundles them together Sub-prime borrowers would eventually pay higher interest rates than traditional mortgage borrowers As a result, securities backed by subprime promised high ...
Grad Finale PPT - Valparaiso University
Grad Finale PPT - Valparaiso University

... May help make repayment more manageable by combining several federal loans into one monthly payment at one fixed interest rate. www.studentloans.gov ...
set 2 - Princeton University Press
set 2 - Princeton University Press

... (maximum amount, lending terms, duration, commitment fee, option to convert into term loan at maturity?,…) Over 75% of commercial and industrial loans at large US banks = take-downs under loan commitments. Liability side : – long term debt and equity WHY? Concern about refinancing (Thakor-Hong-Green ...
Explaining Cross-Sectional Differences in Credit Default
Explaining Cross-Sectional Differences in Credit Default

... The Dodd-Frank Act extended the application of the antifraud provisions of the U.S. securities laws to instances where there is: (1) conduct within the United States that constitutes significant steps in furtherance of the violation, even if the securities transaction occurs outside the United State ...
Definition of commercial bank
Definition of commercial bank

... – products are: bank loans, commodities, currencies, derivatives ...
Exchange Fund Investment Results
Exchange Fund Investment Results

... ...
Gift of Publicly Listed Securities Form (Dec 2015)
Gift of Publicly Listed Securities Form (Dec 2015)

... I understand that I will receive a Gift-in-Kind tax receipt for these securities from Big Brothers Big Sisters of Toronto for the closing price, on the date these securities are received in BBBST’s account. These securities have been donated to BBBST without restriction and can be sold by BBBST at a ...
Lessons from the Financial Crisis
Lessons from the Financial Crisis

... Losses on ABS, especially CDO’s, are gigantic. Losses on ABS CDO’s eventually account for 42% of total bank writedowns (Benmelech and Dlugosz) ...
Practice Exam 3
Practice Exam 3

... C) Was worsened by the implementing of tighter regulations regarding asset holdings. D) Was worsened by the ceilings on interest rates which banks and S&L's could pay customers. 14) Financial intermediaries, particularly banks, A) are experts in the production of information about firms so that it c ...
Security Analysis and Portfolio Management
Security Analysis and Portfolio Management

... any kind of financial transaction refers to financial market. Financial market is a platform where buyers and sellers are involved in sale and purchase of financial products like shares, mutual funds, bonds and so on. ...
Hybrids: What you need to know
Hybrids: What you need to know

... believes they have a known cash flow. However, depending on the structure and future interest rates movements, this cash flow can fluctuate and in a worst case scenario, can also be halted. At the conversion date, holders may have different options, such as; converting the securities into the underl ...
APPLICATION FOR LuSE MEMBERSHIP
APPLICATION FOR LuSE MEMBERSHIP

... as would enable him at the time of making the application to comply with the capital requirement contained in rule 6.01-“all members shall strictly comply with and adhere to the Securities Act together with any regulations or rules made under the Act, the articles and these rules. In particular, mem ...
RTF
RTF

... collateral having a market value, as determined by reliable and continuously available price quotations, at least equal to the amount of the loan or extension of credit outstanding, shall not exceed the greater of (i) ten percent (10%) of the sum of the bank's capital plus those portions of the bank ...
G.S. 53C-6-1
G.S. 53C-6-1

... collateral having a market value, as determined by reliable and continuously available price quotations, at least equal to the amount of the loan or extension of credit outstanding, shall not exceed the greater of (i) ten percent (10%) of the sum of the bank's capital plus those portions of the bank ...
FLCLASS Investment Policy - Florida Cooperative Liquid Assets
FLCLASS Investment Policy - Florida Cooperative Liquid Assets

... Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the ExportImport Bank, the Tennessee Valley Authority, the Government National Mortgage Association, the World Bank, or an entity or organization that is not listed in this paragraph but that is created by, or the cre ...
Broker-dealer Companies Indicators
Broker-dealer Companies Indicators

... 15. Trading in securities where the owners give authorisation to third parties to manage their shareowner’s and money accounts where there are ‘connected’ money transactions in trading securities between owners and authorised persons. 16. Trading in securities for the benefit of offshore legal entit ...
1 WORKDAY, INC. POLICY ON HEDGING IN SECURITIES The
1 WORKDAY, INC. POLICY ON HEDGING IN SECURITIES The

... Investing in Workday’s securities provides an opportunity to share in the future growth of Workday. Investment in Workday and sharing in the growth of Workday, however, does not mean short-range speculation based on fluctuations in the market. Therefore, you may not trade in options, warrants, puts ...
Syndicated Loans as Securities
Syndicated Loans as Securities

... The Judge prefaced his opinion with the remark that the majority opinion “misreads the facts, makes bad banking law and bad securities law, and stands on its head the law of this circuit and of the Supreme Court in Reves v. Ernst & Young.” He considered that the participants, “rather than being comm ...
Securities and Exchange Commission v. Ralston Purina Co
Securities and Exchange Commission v. Ralston Purina Co

... Is an offering of treasury stock to corporate employees within the exemption of §4(2) of the Securities Act of 1933? Holding No. Securities Act of 1933 §4(2) exempts only those offerings that are not a public offering. Absent special circumstances, stock sale to employees is a public offering. The U ...
Obtaining Short-Term Financing VS Long
Obtaining Short-Term Financing VS Long

... greater the risk a lender takes in making a loan, the higher the interest rate required. By Issuing Bonds 1. Indenture term-The terms of agreement in a bond issue 2. Secured bond- A bond issued with some form of collateral 3. Unsecured Bond- A bond backed only by the reputation of the issuer; also c ...
Lecture 2
Lecture 2

... Can use these rights to constrain / motivate their ‘agents’. Legal, accounting, regulatory systems: To address the complicated principal-agent problems that arise in these situations. ...
FF018G
FF018G

... holders of the Issuer’s securities dated ……………………as having been purchased or agreed to be purchased by it and the purchase consideration for all such property has been duly satisfied; ...
Financial Markets
Financial Markets

... from investors  Selling of new securities is handled by investment dealers  Investment dealers act as intermediaries between buyers and sellers ...
3.1 Sources of Financing Part 2
3.1 Sources of Financing Part 2

... Cannot raise money with sale of stock  Unlikely to be able to issue a bond ...
< 1 ... 30 31 32 33 34 35 36 >

Asset-backed security

An asset-backed security (ABS) is a security whose income payments and hence value are derived from and collateralized (or ""backed"") by a specified pool of underlying assets. The pool of assets is typically a group of small and illiquid assets which are unable to be sold individually. Pooling the assets into financial instruments allows them to be sold to general investors, a process called securitization, and allows the risk of investing in the underlying assets to be diversified because each security will represent a fraction of the total value of the diverse pool of underlying assets. The pools of underlying assets can include common payments from credit cards, auto loans, and mortgage loans, to esoteric cash flows from aircraft leases, royalty payments and movie revenues.Often a separate institution, called a special purpose vehicle, is created to handle the securitization of asset backed securities. The special purpose vehicle, which creates and sells the securities, uses the proceeds of the sale to pay back the bank that created, or originated, the underlying assets. The special purpose vehicle is responsible for ""bundling"" the underlying assets into a specified pool that will fit the risk preferences and other needs of investors who might want to buy the securities, for managing credit risk – often by transferring it to an insurance company after paying a premium – and for distributing payments from the securities. As long as the credit risk of the underlying assets is transferred to another institution, the originating bank removes the value of the underlying assets from its balance sheet and receives cash in return as the asset backed securities are sold, a transaction which can improve its credit rating and reduce the amount of capital that it needs. In this case, a credit rating of the asset backed securities would be based only on the assets and liabilities of the special purpose vehicle, and this rating could be higher than if the originating bank issued the securities because the risk of the asset backed securities would no longer be associated with other risks that the originating bank might bear. A higher credit rating could allow the special purpose vehicle and, by extension, the originating institution to pay a lower interest rate (and hence, charge a higher price) on the asset-backed securities than if the originating institution borrowed funds or issued bonds.Thus, one incentive for banks to create securitized assets is to remove risky assets from their balance sheet by having another institution assume the credit risk, so that they (the banks) receive cash in return. This allows banks to invest more of their capital in new loans or other assets and possibly have a lower capital requirement.
  • studyres.com © 2025
  • DMCA
  • Privacy
  • Terms
  • Report