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Broker-Dealer Trading Activities
Broker-Dealer Trading Activities

... assess the quality of competing markets to assure that order flow is directed to markets providing the most beneficial terms for their customers' orders. While in the past quote-based executions in OTC securities were generally recognized as satisfying best executions obligations, the development of ...
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... price falls, the Dutch housing market seems to be recovering slowly. House price falls are decelerating. Property transactions seem to be recovering, albeit modestly. On the rental market, rent increases have become more pronounced than in recent years. Surcharges are being used to encourage tenants ...
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... The ICMA ECP Committee believes that in the event of a firm specific liquidity event, the likelihood is that balance sheets will contract. This does not imply a fire sale or forced sale of assets will be necessary; but rather that, as assets mature, the ability for desks to reinvest will be diminis ...
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... so as to create leverage. The typical market used by portfolio managers to borrow funds using a security as collateral for a loan is the repurchase agreement (repo) market. When a portfolio manager wants to borrow funds via a repo agreement, a dealer provides the funds. The interest rate charged by ...
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... On 31 May 2003 the following information appeared in the books of Nessel and Rode: Balance of Accounts Receivable Control account$5478 Total of schedule of debtors$2896 Balance of Accounts Payable Control account$7368 Total of schedule of creditors$4034 Because the schedules and control account bala ...
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Anti-money laundering and counter-terrorist financing seminar

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... be sufficient to repay the debt, but also occur when repayments are due. A debt-financed project that has a positive NPV but whose cash flows do not coincide with the debt payment schedule should be rejected by the rational entrepreneur because a project that results in a firm defaulting on its obli ...
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... liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, goodwill, intangible assets, and other long-lived assets, as well as tax accruals and other liabilities. In addition, estimates are used in revenue recognition, income tax expense ...
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... the Company’s share of losses in a JV equals or exceeds its interest in the JV, including any other unsecured receivables, the Company does not recognise further losses, unless it has incurred obligations or made payments on behalf of the JV. Unrealised gains on transactions between the Company and ...
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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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