Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
It is in the form of third-party guarantees which protect against losses up to a particular fixed level. This is available in the form of a corporate guarantee, a letter of credit from a bank or a bond insurance. Though the third-party guarantee is referred to as "first loss protection", it is generally not used as a primary protection.
For example, if in a Rs.100 crore asset-backed securities deal, 10% is guaranteed, then for any losses that are in excess of 10%, the sponsor will not be liable. Thus, we see that an asset-backed security which has an external credit support is prone to credit risk of the third-party guarantor. If the third-party guarantor undergoes a downward change in credit rating, then the rating of the issue will also be lowered even if the performance of the entire structure is intact. This is because of the general practice the rating agencies follow by which the credit quality of the issue is assessed to be only as good as the lowest link in credit enhancement.
Collar A collar can be established by holding a share, along with purchasing a protective put and writing a covered call, where both options at out-of-money.. For Example
Public Provident Fund (ppf) The Public Provident Fund (PPF) scheme was started in 1968-69 with the aim to provide a financial instrument to workers in the unorganized sector to
Extent of Financing Required It is clear that sales are unsure with low, high and medium estimates of demand. This of itself gives a few uncertainty but the reliability and pr
a) Product orientated businesses tend to be produce products and inward looking that they hope will sell in the marketplace. For example, Sony hoped that its $101,500 audio systems
Q. Show the benefits of JIT? Additionally to a higher price and quicker settlement by its major customer such a JIT agreement offers several benefits to the supplier of goods.
When a manager measures the interest rate exposure, he would be interested in analyzing the exposure to a set of changing interest rate. The process of r
A callable bond is similar to an Option-free bond with a call option from the bondholder. It can be thought of as the sale of a call option by the investor
The management of Border Bank has asked you to help with it with its market risk calculations. It has compiled the following data on its financial assets: • $500 million of amorti
Role of Trustee in Pension Fund: Trustees are people in control of long-term asset allocation of a pension scheme. Whatever benchmark they set will, as we shall see, influence
Coverage ratios give the relationship between the financial charges of a firm and its ability to service them. The four most commonly used coverage ratios are:
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd