Debt Structure and Financial Flexibility
... related, theoretically, to flexibility: (1) the total level of debt, (2) the mix of short- vs longmaturity debt, (3) the mix of secured vs unsecured debt, and (4) the mix of senior and junior/subordinated debt. The literature generally agrees that a higher total level of debt can reduce future finan ...
... related, theoretically, to flexibility: (1) the total level of debt, (2) the mix of short- vs longmaturity debt, (3) the mix of secured vs unsecured debt, and (4) the mix of senior and junior/subordinated debt. The literature generally agrees that a higher total level of debt can reduce future finan ...
Cyclicality of Credit Supply: Firm Level Evidence
... commercial paper), and 12,782 firm-quarters (6.0%) by the narrower definition (term loans and bonds only) that we use as baseline. In a third of all firm-quarters with debt issuance, debt issues are new loans by the narrower definition, and, by the broader definition, in two thirds (the difference i ...
... commercial paper), and 12,782 firm-quarters (6.0%) by the narrower definition (term loans and bonds only) that we use as baseline. In a third of all firm-quarters with debt issuance, debt issues are new loans by the narrower definition, and, by the broader definition, in two thirds (the difference i ...
The Macroeconomic Transition to High Household Debt Jeffrey R. Campbell Zvi Hercowitz
... From the middle 1930s until the early 1980s, 15 and 30 year amortized mortgages accounted for most of collateralized household debt. These required the home owner to take an initial equity share at the time of purchase and to accumulate further equity as the debt amortizes. The implied forced savin ...
... From the middle 1930s until the early 1980s, 15 and 30 year amortized mortgages accounted for most of collateralized household debt. These required the home owner to take an initial equity share at the time of purchase and to accumulate further equity as the debt amortizes. The implied forced savin ...
The fiscal space in emerging market economies
... limit is not defined, which means that the paths of the debt ratio are explosive. Other authors such as Zandi et al (2011), Fournier and Fall (2015) and Pommier (2015) have used this methodology to estimate the debt limit for other samples of advanced economies. In the second approach, a threshold o ...
... limit is not defined, which means that the paths of the debt ratio are explosive. Other authors such as Zandi et al (2011), Fournier and Fall (2015) and Pommier (2015) have used this methodology to estimate the debt limit for other samples of advanced economies. In the second approach, a threshold o ...
mmi13 Watzka 19074706 en
... sector companies came under distress. This subprime crisis led to the global financial crisis in 2007-2008, which, in most of the economies of the developed world, was followed by a deep recession beginning in 2008-2009. This recession was accompanied by increasing unemployment rates and debt-financ ...
... sector companies came under distress. This subprime crisis led to the global financial crisis in 2007-2008, which, in most of the economies of the developed world, was followed by a deep recession beginning in 2008-2009. This recession was accompanied by increasing unemployment rates and debt-financ ...
Presentación de PowerPoint
... warranties or guarantees of any nature with respect to the results, outcome or final developments in this matter or with respect to the economic, financial or other results which the Company may experience. The Company may not be successful in pursuing the revised business model or executing a restr ...
... warranties or guarantees of any nature with respect to the results, outcome or final developments in this matter or with respect to the economic, financial or other results which the Company may experience. The Company may not be successful in pursuing the revised business model or executing a restr ...
The Balance Sheet: Assets, Debts and Equity
... company’s plant, property and equipment figure to industry norms. Goodwill is the premium paid over the accounting value of an acquired firm’s net assets. It reflects the extra value of an ongoing concern (a company’s ability to stay in business), potential market share gains, brands and other intan ...
... company’s plant, property and equipment figure to industry norms. Goodwill is the premium paid over the accounting value of an acquired firm’s net assets. It reflects the extra value of an ongoing concern (a company’s ability to stay in business), potential market share gains, brands and other intan ...
GambaTriantis2013HEC.. - University of Warwick
... and pledging assets as collateral on the debt capacity of a firm. ...
... and pledging assets as collateral on the debt capacity of a firm. ...
mmi13 Egert 19074760 en
... The financial and economic crisis prompted by the unwinding US subprime mortgage market resulted in deep economic recession in many countries of the world. Governments and central banks reacted to the Great Recession by firing heavy artillery: fiscal and monetary policy expansion, unprecedented in s ...
... The financial and economic crisis prompted by the unwinding US subprime mortgage market resulted in deep economic recession in many countries of the world. Governments and central banks reacted to the Great Recession by firing heavy artillery: fiscal and monetary policy expansion, unprecedented in s ...
Dynamic Monitoring of Financial Intermediaries with Subordinated
... component. The systematic component is associated with market conditions such as the state of the stock market, the bond market, the Treasury yield curve, the state of the business cycle, etc. The idiosyncratic component is associated with the special characteristics of the security, such as embedd ...
... component. The systematic component is associated with market conditions such as the state of the stock market, the bond market, the Treasury yield curve, the state of the business cycle, etc. The idiosyncratic component is associated with the special characteristics of the security, such as embedd ...
Orderly Liquidation Authority: FDIC Announces
... controllable by the holding company. The issue is, however, complicated by the FDIC’s additional duty to resolve the bank at the lowest possible cost to the DIF. ...
... controllable by the holding company. The issue is, however, complicated by the FDIC’s additional duty to resolve the bank at the lowest possible cost to the DIF. ...
Implications of Globalization on Growing External Debt in Eight
... easier access to private capital. Debt overhang for countries with developed institutional framework is 15-30% of GDP. Countries with worse institutional conditions seem to exhibit a similar pattern but with significantly lower thresholds. Related thresholds are between 0% and 20% of GDP (Cordella, ...
... easier access to private capital. Debt overhang for countries with developed institutional framework is 15-30% of GDP. Countries with worse institutional conditions seem to exhibit a similar pattern but with significantly lower thresholds. Related thresholds are between 0% and 20% of GDP (Cordella, ...
Chapter 19
... • Short-term rates are normally lower than long-term rates, so it may be cheaper to finance with short-term debt • Firms can get into trouble if rates increase quickly or if it begins to have difficulty making payments – may not be able to refinance the short-term loans ...
... • Short-term rates are normally lower than long-term rates, so it may be cheaper to finance with short-term debt • Firms can get into trouble if rates increase quickly or if it begins to have difficulty making payments – may not be able to refinance the short-term loans ...
Capital Budgeting for Small Businesses
... the same firm will pay significantly more, 20.5% (16% ^ (1-0.22)), for an issue of only $1 million. Because of these costs, small businesses with smaller capital requirements typically rely upon owners' equity and com mercial banks as their main sources of capital instead of primary capital markets ...
... the same firm will pay significantly more, 20.5% (16% ^ (1-0.22)), for an issue of only $1 million. Because of these costs, small businesses with smaller capital requirements typically rely upon owners' equity and com mercial banks as their main sources of capital instead of primary capital markets ...
Funding Strategies of Sovereign Debt Management: A Risk
... In the context of sovereign liability management, market liquidity risk identifies the problems of selling significant quantities of a security in a quick, anonymous way with a rather small impact on the price. The size of the debt market and the composition of the investor base are crucial elements ...
... In the context of sovereign liability management, market liquidity risk identifies the problems of selling significant quantities of a security in a quick, anonymous way with a rather small impact on the price. The size of the debt market and the composition of the investor base are crucial elements ...
Effect of Leverage on Performance of Non
... efficient utilization and allocation of resources in order to increase the company’s financial performance based on capital structure. When corporations decide on the use of debt finance, they are reallocating some expected future cash flows away from equity claimants in exchange for cash up front. ...
... efficient utilization and allocation of resources in order to increase the company’s financial performance based on capital structure. When corporations decide on the use of debt finance, they are reallocating some expected future cash flows away from equity claimants in exchange for cash up front. ...
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... positive effect on the share of LT debt is stronger for private than for public debt, possibly because international reserves help private borrowers to loosen their credit constraints more than sovereign borrowers. In addition, to account for the potential interdependence between the maturity struct ...
... positive effect on the share of LT debt is stronger for private than for public debt, possibly because international reserves help private borrowers to loosen their credit constraints more than sovereign borrowers. In addition, to account for the potential interdependence between the maturity struct ...
Crunch Time: Fiscal Crises and the Role of Monetary Policy*
... cash flow of a realistic exit strategy from its current expanded balance sheet. As interest rates rise, the Fed will need to pay more to persuade banks to hold any remaining large balances of excess reserves. And, should it sell assets to shrink its balance sheet as it once indicated was likely, the ...
... cash flow of a realistic exit strategy from its current expanded balance sheet. As interest rates rise, the Fed will need to pay more to persuade banks to hold any remaining large balances of excess reserves. And, should it sell assets to shrink its balance sheet as it once indicated was likely, the ...
Improving Covenant Protections in the Investment
... approach is agreed, the shortcomings described above should be remedied. In the model provision included in Annex A, we are proposing standard language for both a single-trigger and a double-trigger change of control covenant. The model version addresses the shortcomings identified above as follows: ...
... approach is agreed, the shortcomings described above should be remedied. In the model provision included in Annex A, we are proposing standard language for both a single-trigger and a double-trigger change of control covenant. The model version addresses the shortcomings identified above as follows: ...
The Role of ABS, CDS and CDOs in the Credit Crisis and the Economy
... First, government policies were introduced that were designed to encourage home ownership by low-income families. The American Dream Downpayment Act of 2003 was introduced to provide …nancial assistance to lower income and minority households in order to increase the homeownership rate4 . This incre ...
... First, government policies were introduced that were designed to encourage home ownership by low-income families. The American Dream Downpayment Act of 2003 was introduced to provide …nancial assistance to lower income and minority households in order to increase the homeownership rate4 . This incre ...
13 - Finance
... At high debt levels concerns about risk dominate and adding more debt decreases the stock’s price As leverage increase its effect goes from positive to negative, which results in an optimum capital structure ...
... At high debt levels concerns about risk dominate and adding more debt decreases the stock’s price As leverage increase its effect goes from positive to negative, which results in an optimum capital structure ...
Kauss- Single Mortgage Loan
... appeared. These provisions were often much more than mere “disclaimers”. Not only did they provide for disclaimer of all seller warranties, but they also required the buyer to affirmatively release all claims against the seller and all manner of persons and entities having any relationship to the se ...
... appeared. These provisions were often much more than mere “disclaimers”. Not only did they provide for disclaimer of all seller warranties, but they also required the buyer to affirmatively release all claims against the seller and all manner of persons and entities having any relationship to the se ...
Risk Allocation, Debt Fueled Expansion and Financial Crisis ∗ Paul Beaudry
... recall that the early years of the 21st century were particular from a historical standpoint on many dimensions. The recession of 2001 resulted in large part from a negative re-evaluation of the investment opportunities associated with information technology. In other words, this was a period where ...
... recall that the early years of the 21st century were particular from a historical standpoint on many dimensions. The recession of 2001 resulted in large part from a negative re-evaluation of the investment opportunities associated with information technology. In other words, this was a period where ...
No Silver Bullet - The Pew Charitable Trusts
... Debt of this magnitude would threaten the country’s economic well-being. Government borrowing on that scale would siphon capital from private industry, reducing productivity and real wages. It would make the federal government more dependent on the wishes of foreign lenders. It would put pressure o ...
... Debt of this magnitude would threaten the country’s economic well-being. Government borrowing on that scale would siphon capital from private industry, reducing productivity and real wages. It would make the federal government more dependent on the wishes of foreign lenders. It would put pressure o ...