Who are the key parties in ABCP program?
The key parties to an ABCP program are: Originator-seller – An entity that originates financial assets and sells those assets directly or through a majority-owned affiliate to an S...
When are convertible bonds converted?
A convertible bond’s minimum price is the greater of either its conversion value or its straight value, which equals the present value of the bond’s cash flows discounted using the...
What types of warrants are there?
A bond cum warrant is a bond with a detachable subscription (generic) warrants that may be traded separately from the bond. Detachable warrants are also issued with preferred stoc...
Yield to put (YTP) is the total return on a bond that has an embedded put option to sell it back to the issuer if the puttable bond is held until the first permissible date when th...
What is the source of fund returns?
The income of investment funds can result through cash dividends, interest income, and capital gains realized on fund portfolio: Cash dividend – The distribution of a company's net...
The money market is the financial market for high-quality debt instruments issued with an original maturity of up to one year. The money market is distinguished from the capital m...
What is the impairment of leased assets?
An impairment is a permanent reduction in the carrying value of an asset below its fair value (US GAAP) or recoverable amount (IFRS), which occurs when it is deemed improbable that...
The Euromarket is the over-the-counter market for interbank deposits, loans, debt, equity and derivative instruments denominated in a currency foreign to the bank, debtor or issuer...
What is the Capital Asset Pricing Model (CAPM)?
The Capital Asset Pricing Model (CAPM) is frequently used in portfolio management to determine the theoretically appropriate required rate of return on an asset, it relating the pe...
What is tax-equivalent yield (TEY)?
Interest income from municipal bonds is not subject to US federal income tax and generally not subject to state and local taxation in the state of issuance. The tax-equivalent yie...
