Explain these changes using shifts in demand and supply

Assignment Help Business Economics

Reference no: EM13149789

In 1998, the Syndicated Bank Loan market (defined as loans having more than two bank lenders) was a vast and cheap source of debt financing for U.S. corporations. This market was characterized by a large number of financial institutions that aggressively committed capital to debt issuers as a way to build market share and increase earnings. Over the next three years, however, syndicated loan prices increased dramatically while the quantity of these loans declined. The price increase, measured as a markup over the cost of funds or LIBOR (London Interbank Offered Rate), is illustrated in the figure labeled “All-In Drawn Pricing.” For example, the price to BBB-rated companies rose from 37.5 basis points in 1998 to approximately 129 basis points in 2002. This is a 244% increase in the price or spread. Explain these changes using shifts in demand and/or supply.

Reference no: EM13149789

Questions Cloud

Concept regarding depreciation expense : The yearly depreciation on the building is $2,000. Required: Prepare the general journal entries to record the stock issue and the purchase of the land and building on January 1 and the depreciation expense on December 31, 2010.

Find the equilibrium interest rate : Find the equilibrium interest rate c. Now suppose that G rises to 1,250. Compute private saving, public saving, and national saving. d. Find the new equilibrium interest rate.

Calculate q w delta u and delta h : Calculate q,w,delta U and Delta H for each segment and for the cycle in which the direction of each process is reversed. In the graph all it says is the P initial =16.6 bar and Vinitial=1.00L and P final=16.6 bar and V final =25L

Compute the computer carrying value : Prepare the adjusting entry to record depreciation at the end of July, 2010. Compute the computer's carrying value that will be shown on Dexter's balance sheet prepared on December 31.

Explain these changes using shifts in demand and supply : the price to BBB-rated companies rose from 37.5 basis points in 1998 to approximately 129 basis points in 2002. This is a 244% increase in the price or spread. Explain these changes using shifts in demand and/or supply.

Weighted-average to fifo inventory pricing : Compute the cumulative effect of the change in accounting principle from weighted-average to FIFO inventory pricing.

When does price ceiling become binding and what it create : Draw and show with boxes and appropriate labeling who bears which portion of taxes. When does a price ceiling become binding and what does it create? Show in the diagram.

Determine the limiting reactant : Determine the limiting reactant in each of the following reactions. Circle (Just label) the formula for the limiting reactant in each problem.

What happens to market price and quantity if demand rises bu : What happens to market price and quantity if demand rises but supply falls? Draw them with labels. Qd rises from 40 to 60 if P falls from 12 to 8. PED? Show the formula first and then all calculations. Qs falls from 24 to 16 if P falls from 18 to 12...

User Account

All Pages