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Downlaod File
Downlaod File

... Write short notes on each of the six listed capital market instruments. 1- Stocks: Corporations, governments, and companies issue securities on the stock market to collect funds. 2- Bonds: Such as Municipal Bonds 3- Debentures: It's considered as unsecured investment because there are no pledges (gu ...
Why do Financial Intermediaries Exist?
Why do Financial Intermediaries Exist?

... mortgages, 30 year) yielded very low returns Interest paid on short-term money (competing with mutual funds) was generally double the rate of return on mortgages Market value of mortgages held by S&Ls fell as interest rates rose making the value of assets less than value of liabilities ...
Module 2 Review Guide
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... Law of diminishing marginal utility - As each additional quantity of a good or service is consumed, the relative satisfaction obtained decreases. Remember that more isn't always better. The Law of Diminishing Marginal Utility shows us that there is a point where our satisfaction begins to decrease! ...
Financing a Small Business 4.00 Explain the fundamentals of
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Interest Rate Risk
Interest Rate Risk

... Management of Local Investments 1. All investments are held in U.S. Dollars. On an exceptional basis, Treasury may grant authority to an Office to invest excess local currency on a short-term basis. 2. Principles for Managing Working Capital Preserving principal – this means to protect UNDP cash and ...
Summer Doldrums - RBC Wealth Management
Summer Doldrums - RBC Wealth Management

Business Ethics - FIU College of Business
Business Ethics - FIU College of Business

Conference Call
Conference Call

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Gearing Capital Funding
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High Yield Bond Prices – Are They Exhausted?
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pairs class - #14
pairs class - #14

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Member Service Representative ProMedica Federal Credit Union

Choosing a Lender - kauai real estate, kauai hawaii real estate
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Interest-rate swap (IRS)
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Securitisation
Securitisation

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Farm Credit System

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Chapter 29
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CHAPTER 1 : THE INVESTMENT ENVIRONMENT
CHAPTER 1 : THE INVESTMENT ENVIRONMENT

... that resources used for rearranging wealth (that is, bundling and unbundling financial assets) might be better spent on creating wealth (that is, creating real assets). Evaluate this criticism. Are any benefits realized by creating an array of derivative securities from various primary securities? O ...
honors pre-calculus - Tolland Public Schools
honors pre-calculus - Tolland Public Schools

... Other Revenue ...
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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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