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Investments Lecture Notes
Investments Lecture Notes

...  The equity method with consolidation is used to account for long-term investments in equity securities with controlling influence. The investor reports consolidated financial statements when owning such securities. The controlling investor is called the parent, and the investee is called the subsi ...
Managing cash in your portfolio
Managing cash in your portfolio

... management. Also, transaction costs for money market funds are often lower because the investors do not have to pay a bid-ask spread on their own individual securities. ...
Investor Presentation May 2014
Investor Presentation May 2014

Northern Trust
Northern Trust

I. INTRODUCTION TO SECURITIES TRADING AND MARKETS
I. INTRODUCTION TO SECURITIES TRADING AND MARKETS

... The Trust Indenture Act of 1939 provided that issuers of bonds must clearly specify purchaser rights in a trust indenture, provide bond trustees with periodic financial reports, and that the trustee not impair its right or willingness to sue the issuing corporation. The Investment Companies Act of 1 ...
Economics 471 Lecture 2 Elementary Probability, Portfolio Theory
Economics 471 Lecture 2 Elementary Probability, Portfolio Theory

... In this lecture we review some basic concepts of probability including expectation, variance, covariance and correlation, and incidentally reveal how to get rich in the stock market. Suppose you buy an asset today at price p0 , it might be 100 shares of IBM stock or a painting by Matisse. A month fr ...
Wilson Kattelus
Wilson Kattelus

... rather than depreciation for certain eligible ...
Chapter 3. Securities Markets
Chapter 3. Securities Markets

... Margin is the net worthof the investor`s account and describes securities purchased with money borrowed in part from a broker. When purchasing securities, investors have easy access to a source of debt financing called broker`s call loans . Thus, this process is called buying on margin. In the sense ...
Mortgage Credit & Subprime Lending: Implications of a
Mortgage Credit & Subprime Lending: Implications of a

2138 Exam 2
2138 Exam 2

... Option Two calls for Blondie to transfer the $400,000 in receivables to Dogwood with recourse. Dogwood's charges a 4% fee for receivables factored with recourse. Option Two meets the conditions to be considered a sale, but Blondie estimates a $3,000 recourse liability. Under either option, Dogwood w ...
NOTICE OF MATERIAL EVENT UNDER SEC RULE 15c2
NOTICE OF MATERIAL EVENT UNDER SEC RULE 15c2

... of the sigificance of the new rating may be obtained from the rating agency. The new ratings reflect only the views  of the rating agency and are not recommendations to buy, sell, or hold obligations. The Issuer makes no  representation as to the appropriateness of the new rating.  There is no assur ...
DENZIO L IKUNGWA - Institute of Bankers in Malawi
DENZIO L IKUNGWA - Institute of Bankers in Malawi

... Question 6 a Efficient Market Hypothesis – EMH; An investment theory that states it is impossible to "beat the market" because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information. According to the EMH, this means that stocks always trade at ...
Argentina`s Currency Crisis
Argentina`s Currency Crisis

... through personalized relationships and fixed collateral Access limited to a circumscribed network of participants Weak institutions affect differently different credit markets ...
Note 22 - Measurement of fair value of financial instruments
Note 22 - Measurement of fair value of financial instruments

... - Bonds and money market certificates ...
The Causes and Consequences of Credit Expansion
The Causes and Consequences of Credit Expansion

Accrual of Interest Costs - Homepage
Accrual of Interest Costs - Homepage

... This an important attribute of an institutional unit or individual in the balance of payments because the identification of transactions between residents and nonresidents underpins the system. The concept of residence is based on transactor’s center of economic interest. An institutional unit or in ...
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THE SEARCH FOR HIGHER RETURNS
THE SEARCH FOR HIGHER RETURNS

... and Mortgagee-backed securities. In practice, the strategy is done through allocating securities in respective sectors to overweight or underweight positions relative to a market benchmark. This is why the strategy is also known as sector allocation. Buy-and-hold investors typically implement this s ...
Evaluating Consumer Loans
Evaluating Consumer Loans

...  Bridge loans often arise when an individual borrows funds for the down payment on a new house  The loan is repaid when the borrower sells the previous home ...
Evaluating Consumer Loans
Evaluating Consumer Loans

...  Bridge loans often arise when an individual borrows funds for the down payment on a new house  The loan is repaid when the borrower sells the previous home ...
How Does Market Volatility Impact Risk Measures?
How Does Market Volatility Impact Risk Measures?

... necessary condition for reaping the long-term rewards of investing, it is far from a sufficient one. In fact, most risk goes unrewarded. This is why modern portfolio theory teaches us to diversify our portfolios to avoid taking risks that will not be rewarded. We start our analysis by considering th ...
Current Challenges in Housing and Home Loans: Complicating Factors and
Current Challenges in Housing and Home Loans: Complicating Factors and

NATIONAL FINANCIAL SERVICES LLC STATEMENT OF
NATIONAL FINANCIAL SERVICES LLC STATEMENT OF

... These long-lived assets in the statement of financial condition are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. When the long-lived asset is not expected to provide any service future potential the asset is reduced to its n ...
MTS Group Regulatory Structure
MTS Group Regulatory Structure

... Documents/Regulatory-structure. This communication is addressed to investment professionals only. Information in this publication may or may not have been provided by MTS S.p.A. and/or its group undertakings, and/or the individual authors (each a “party” and together the “parties”), but is made avai ...
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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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