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3040.03.04 fin statements
3040.03.04 fin statements

... Investment in new net working capital When sales grow, your requirements for current assets increase ...
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... To survive in the long run, a firm must be able to meet its long-term liabilities; otherwise it is in danger or collapse or takeover. • To measure this risk, long-term solvency ratios are used, the most common being the debt-to-owners’ equity ratio or leverage, which compares the amount of debt to t ...
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... The National Association of Real Estate Investment Trusts (NAREIT) Equity Index is a market-value-weighted index based upon the last closing price of the month for tax-qualified REITs listed on the NYSE. S&P/LSTA Leveraged Loan Index (LLI) is a daily total return index that uses LSTA/LPC Mark-to-Mar ...
Ultra-low or negative interest rates
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... Unfortunately, in such conditions, monetary policy is less capable of contributing to a robust recovery than one might hope, since moribund balance sheets sap its effectiveness. And if financial institutions are weak, they are unlikely to transmit monetary impulses effectively via increased lending. ...
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... We will use stock short sales in many of strategies associated with options trading. In all of these strategies, we will assume that no cash flow occurs from the time the strategy is opened with the stock short sale until the time the strategy terminates and the stock is ...
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... the qualified custodian and client an invoice or statement of the amount of the fee to be deducted from the client’s account each time a fee is directly deducted.4 Non-compliance with these procedures will result in an adviser being deemed to have custody of client cash, bank accounts, or securities ...
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... loans, how they get funds, manage their assets and liabilities (debts) and how they earn income. • The focus is on commercial banking because this is the most important financial intermediary activity. Copyright © 2007 Pearson Addison-Wesley. All rights reserved. ...
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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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