Syndicated Credit Origination
Syndicated Credit Origination
Syndicated credits originate in a number of ways. Origination can be a result of a marketing call by a bank; a normal analysis and review of an established funding program, as is the case of most sovereign and public sector borrowers; or the borrower, typically in the private sector, can initiate it. For a borrower, the need for syndicated credit
More DetailsDig DeeperSyndicated credits originate in a number of ways. Origination can be a result of a marketing call by a bank; a normal analysis and...
Syndicated Credit Origination
Syndicated credits originate in a number of ways. Origination can be a result of a marketing call by a bank; a normal analysis and review of an established funding program, as is the case of most sovereign and public sector borrowers; or the borrower, typically in the private sector, can initiate it. For a borrower, the need for syndicated credit
More DetailsDig DeeperSyndicated Credit Origination
Syndicated credits originate in a number of ways. Origination can be a result of a marketing call by a bank; a normal analysis and review of an established funding program, as is the case of most sovereign and public sector borrowers; or the borrower, typically in the private sector, can initiate it. For a borrower, the need for syndicated credit
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Bank M & A Strategies
Bank M & A Strategies
M&A activity in the banking industry has been stimulated in various decades by a number of factors, including deregulation; increasing competition; market valuations; synergistic opportunities; and technology, globalization, and management incentives. The financial services industry is highly fragmented, both on a global basis and within individual countries, most notably the United States. The sustained wave of financial industry mergers and
More DetailsDig DeeperM&A activity in the banking industry has been stimulated in various decades by a number of factors, including deregulation; increasing competition; market valuations; synergistic...
Bank M & A Strategies
M&A activity in the banking industry has been stimulated in various decades by a number of factors, including deregulation; increasing competition; market valuations; synergistic opportunities; and technology, globalization, and management incentives. The financial services industry is highly fragmented, both on a global basis and within individual countries, most notably the United States. The sustained wave of financial industry mergers and
More DetailsDig DeeperBank M & A Strategies
M&A activity in the banking industry has been stimulated in various decades by a number of factors, including deregulation; increasing competition; market valuations; synergistic opportunities; and technology, globalization, and management incentives. The financial services industry is highly fragmented, both on a global basis and within individual countries, most notably the United States. The sustained wave of financial industry mergers and
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Gap Management Techniques
Gap Management Techniques
Net interest margin is a significant source of risk and return at all lending institutions. It is the difference between total interest revenues on the bank's assets and the total interest expense on the bank's liabilities. Gap is the difference between the amount of rate-sensitive assets and rate-sensitive liabilities, and gap management is used to stabilize interest margins and earnings.
More DetailsDig DeeperNet interest margin is a significant source of risk and return at all lending institutions. It is the difference between total interest revenues on...
Gap Management Techniques
Net interest margin is a significant source of risk and return at all lending institutions. It is the difference between total interest revenues on the bank's assets and the total interest expense on the bank's liabilities. Gap is the difference between the amount of rate-sensitive assets and rate-sensitive liabilities, and gap management is used to stabilize interest margins and earnings.
More DetailsDig DeeperGap Management Techniques
Net interest margin is a significant source of risk and return at all lending institutions. It is the difference between total interest revenues on the bank's assets and the total interest expense on the bank's liabilities. Gap is the difference between the amount of rate-sensitive assets and rate-sensitive liabilities, and gap management is used to stabilize interest margins and earnings.
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M&A Motivations and Objectives
M&A Motivations and Objectives
The successful completion of a merger or acquisition requires financial and business professionals who understand business strategy, valuation, negotiation, financing, taxes, government regulation, asset deployment, marketing and administrative functions, corporate culture, and human resources. The first step in understanding the M&A process is in understanding the motivations underlying the decision. The motivations for a merger or acquisition can be categorized
More DetailsDig DeeperThe successful completion of a merger or acquisition requires financial and business professionals who understand business strategy, valuation, negotiation, financing, taxes, government regulation, asset...
M&A Motivations and Objectives
The successful completion of a merger or acquisition requires financial and business professionals who understand business strategy, valuation, negotiation, financing, taxes, government regulation, asset deployment, marketing and administrative functions, corporate culture, and human resources. The first step in understanding the M&A process is in understanding the motivations underlying the decision. The motivations for a merger or acquisition can be categorized
More DetailsDig DeeperM&A Motivations and Objectives
The successful completion of a merger or acquisition requires financial and business professionals who understand business strategy, valuation, negotiation, financing, taxes, government regulation, asset deployment, marketing and administrative functions, corporate culture, and human resources. The first step in understanding the M&A process is in understanding the motivations underlying the decision. The motivations for a merger or acquisition can be categorized
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Optimizing Capital Structure
Optimizing Capital Structure
Optimizing capital structure (debt/equity/hybrids) has direct impact on the performance and value of the firm. As a company grows and its business risk declines, it has access to a greater variety of financing alternatives with a wider range of prices and conditions. Adding value in this decision-making process can enhance an advisor's relationship with the company and increase the probability
More DetailsDig DeeperOptimizing capital structure (debt/equity/hybrids) has direct impact on the performance and value of the firm. As a company grows and its business risk declines,...
Optimizing Capital Structure
Optimizing capital structure (debt/equity/hybrids) has direct impact on the performance and value of the firm. As a company grows and its business risk declines, it has access to a greater variety of financing alternatives with a wider range of prices and conditions. Adding value in this decision-making process can enhance an advisor's relationship with the company and increase the probability
More DetailsDig DeeperOptimizing Capital Structure
Optimizing capital structure (debt/equity/hybrids) has direct impact on the performance and value of the firm. As a company grows and its business risk declines, it has access to a greater variety of financing alternatives with a wider range of prices and conditions. Adding value in this decision-making process can enhance an advisor's relationship with the company and increase the probability
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Gap Management Strategy Development
Gap Management Strategy Development
Your gap management strategy depends on your expectations for interest rates, your tolerance for risk, and your existing asset/liability position. A successful gap management strategy means maximizing profits while minimizing gap. The four major strategies are: accept margin fluctuations; manage the gap over rate cycles; achieve gap targets with typical assets or liabilities; or achieve gap targets by hedging. Changes
More DetailsDig DeeperYour gap management strategy depends on your expectations for interest rates, your tolerance for risk, and your existing asset/liability position. A successful gap management...
Gap Management Strategy Development
Your gap management strategy depends on your expectations for interest rates, your tolerance for risk, and your existing asset/liability position. A successful gap management strategy means maximizing profits while minimizing gap. The four major strategies are: accept margin fluctuations; manage the gap over rate cycles; achieve gap targets with typical assets or liabilities; or achieve gap targets by hedging. Changes
More DetailsDig DeeperGap Management Strategy Development
Your gap management strategy depends on your expectations for interest rates, your tolerance for risk, and your existing asset/liability position. A successful gap management strategy means maximizing profits while minimizing gap. The four major strategies are: accept margin fluctuations; manage the gap over rate cycles; achieve gap targets with typical assets or liabilities; or achieve gap targets by hedging. Changes
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Project Financing Features
Project Financing Features
Project finance is used to finance a wide variety of major projects, including electric power plants, offshore oil production platforms, mines, factories, and telecommunications systems. In a project financing, the project being constructed generates the cash flow which will repay the financing. Lenders expect to be paid solely from the cash flow produced by the project and to be secured
More DetailsDig DeeperProject finance is used to finance a wide variety of major projects, including electric power plants, offshore oil production platforms, mines, factories, and telecommunications...
Project Financing Features
Project finance is used to finance a wide variety of major projects, including electric power plants, offshore oil production platforms, mines, factories, and telecommunications systems. In a project financing, the project being constructed generates the cash flow which will repay the financing. Lenders expect to be paid solely from the cash flow produced by the project and to be secured
More DetailsDig DeeperProject Financing Features
Project finance is used to finance a wide variety of major projects, including electric power plants, offshore oil production platforms, mines, factories, and telecommunications systems. In a project financing, the project being constructed generates the cash flow which will repay the financing. Lenders expect to be paid solely from the cash flow produced by the project and to be secured
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Early Warning Indicators for Debt in Distress
Early Warning Indicators for Debt in Distress
Bankers never intend to have a problem loan; but, inevitably, some loans will become problem loans. The earlier a possible loss is detected, the more alternatives there are to avoid or reduce economic loss. That's why it is important to know the early warning indicators of credit distress. The financial ratios that provide early warning of credit distress are those
More DetailsDig DeeperBankers never intend to have a problem loan; but, inevitably, some loans will become problem loans. The earlier a possible loss is detected, the...
Early Warning Indicators for Debt in Distress
Bankers never intend to have a problem loan; but, inevitably, some loans will become problem loans. The earlier a possible loss is detected, the more alternatives there are to avoid or reduce economic loss. That's why it is important to know the early warning indicators of credit distress. The financial ratios that provide early warning of credit distress are those
More DetailsDig DeeperEarly Warning Indicators for Debt in Distress
Bankers never intend to have a problem loan; but, inevitably, some loans will become problem loans. The earlier a possible loss is detected, the more alternatives there are to avoid or reduce economic loss. That's why it is important to know the early warning indicators of credit distress. The financial ratios that provide early warning of credit distress are those
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Financial Institutions and Risks
Financial Institutions and Risks
The activities of financial institutions expose them to four primary types of ongoing risks: market risk, credit risk, liquidity risk, and political risk. Market (price) risk is caused by changing market conditions. Credit risk is the exposure to loss from the default or downgrade of a financial or other counterparty instrument. Liquidity risk is the risk that a financial institution
More DetailsDig DeeperThe activities of financial institutions expose them to four primary types of ongoing risks: market risk, credit risk, liquidity risk, and political risk. Market...
Financial Institutions and Risks
The activities of financial institutions expose them to four primary types of ongoing risks: market risk, credit risk, liquidity risk, and political risk. Market (price) risk is caused by changing market conditions. Credit risk is the exposure to loss from the default or downgrade of a financial or other counterparty instrument. Liquidity risk is the risk that a financial institution
More DetailsDig DeeperFinancial Institutions and Risks
The activities of financial institutions expose them to four primary types of ongoing risks: market risk, credit risk, liquidity risk, and political risk. Market (price) risk is caused by changing market conditions. Credit risk is the exposure to loss from the default or downgrade of a financial or other counterparty instrument. Liquidity risk is the risk that a financial institution
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Impact of Financing Alternatives
Impact of Financing Alternatives
Optimizing capital structure is a matter of minimizing the weighted average cost of capital, within the constraints of the company's business and financial goals. The process is dynamic - as a company's business risk declines, the company can attract a greater variety of financing, with a wider range of prices and conditions. The central job of a company's chief financial
More DetailsDig DeeperOptimizing capital structure is a matter of minimizing the weighted average cost of capital, within the constraints of the company’s business and financial goals....
Impact of Financing Alternatives
Optimizing capital structure is a matter of minimizing the weighted average cost of capital, within the constraints of the company's business and financial goals. The process is dynamic - as a company's business risk declines, the company can attract a greater variety of financing, with a wider range of prices and conditions. The central job of a company's chief financial
More DetailsDig DeeperImpact of Financing Alternatives
Optimizing capital structure is a matter of minimizing the weighted average cost of capital, within the constraints of the company's business and financial goals. The process is dynamic - as a company's business risk declines, the company can attract a greater variety of financing, with a wider range of prices and conditions. The central job of a company's chief financial
More DetailsDig Deeper
M&A Accounting Tax and Regulatory Issues
M&A Accounting Tax and Regulatory Issues
As of 2001 FASB (the Financial Accounting Standards Board) disallowed use of pooling-of-interests accounting in US mergers and acquisitions and required purchase accounting. In 2005, IASB (the International Accounting Standards Board) applied a similar rule. The primary reasons for the rule change were that the pooling method provided investors with less information; that investors found it difficult to compare companies
More DetailsDig DeeperAs of 2001 FASB (the Financial Accounting Standards Board) disallowed use of pooling-of-interests accounting in US mergers and acquisitions and required purchase accounting. In...
M&A Accounting Tax and Regulatory Issues
As of 2001 FASB (the Financial Accounting Standards Board) disallowed use of pooling-of-interests accounting in US mergers and acquisitions and required purchase accounting. In 2005, IASB (the International Accounting Standards Board) applied a similar rule. The primary reasons for the rule change were that the pooling method provided investors with less information; that investors found it difficult to compare companies
More DetailsDig DeeperM&A Accounting Tax and Regulatory Issues
As of 2001 FASB (the Financial Accounting Standards Board) disallowed use of pooling-of-interests accounting in US mergers and acquisitions and required purchase accounting. In 2005, IASB (the International Accounting Standards Board) applied a similar rule. The primary reasons for the rule change were that the pooling method provided investors with less information; that investors found it difficult to compare companies
More DetailsDig Deeper
Corporate Exposure Identification
Corporate Exposure Identification
Financial risk is more than a company's LIBOR-based financing and foreign-currency receivables. It results from a company's business strategy, competitors, and the economy at large. Before trying to quantify a company's exposure, it's important to understand the general types of exposure that the company faces. Exposures can be either tactical (transaction and translation exposures) or strategic (competitive and economic exposures).
More DetailsDig DeeperFinancial risk is more than a company’s LIBOR-based financing and foreign-currency receivables. It results from a company’s business strategy, competitors, and the economy at...
Corporate Exposure Identification
Financial risk is more than a company's LIBOR-based financing and foreign-currency receivables. It results from a company's business strategy, competitors, and the economy at large. Before trying to quantify a company's exposure, it's important to understand the general types of exposure that the company faces. Exposures can be either tactical (transaction and translation exposures) or strategic (competitive and economic exposures).
More DetailsDig DeeperCorporate Exposure Identification
Financial risk is more than a company's LIBOR-based financing and foreign-currency receivables. It results from a company's business strategy, competitors, and the economy at large. Before trying to quantify a company's exposure, it's important to understand the general types of exposure that the company faces. Exposures can be either tactical (transaction and translation exposures) or strategic (competitive and economic exposures).
More DetailsDig DeeperSyndicated Credit Origination
Syndicated credits originate in a number of ways. Origination can be a result of a marketing call by a bank; a normal analysis and review of an established funding program, as is the case of most sovereign and public sector borrowers; or the borrower, typically in the private sector, can initiate it. For a borrower, the need for syndicated credit
More DetailsDig DeeperBank M & A Strategies
M&A activity in the banking industry has been stimulated in various decades by a number of factors, including deregulation; increasing competition; market valuations; synergistic opportunities; and technology, globalization, and management incentives. The financial services industry is highly fragmented, both on a global basis and within individual countries, most notably the United States. The sustained wave of financial industry mergers and
More DetailsDig DeeperGap Management Techniques
Net interest margin is a significant source of risk and return at all lending institutions. It is the difference between total interest revenues on the bank's assets and the total interest expense on the bank's liabilities. Gap is the difference between the amount of rate-sensitive assets and rate-sensitive liabilities, and gap management is used to stabilize interest margins and earnings.
More DetailsDig DeeperM&A Motivations and Objectives
The successful completion of a merger or acquisition requires financial and business professionals who understand business strategy, valuation, negotiation, financing, taxes, government regulation, asset deployment, marketing and administrative functions, corporate culture, and human resources. The first step in understanding the M&A process is in understanding the motivations underlying the decision. The motivations for a merger or acquisition can be categorized
More DetailsDig DeeperOptimizing Capital Structure
Optimizing capital structure (debt/equity/hybrids) has direct impact on the performance and value of the firm. As a company grows and its business risk declines, it has access to a greater variety of financing alternatives with a wider range of prices and conditions. Adding value in this decision-making process can enhance an advisor's relationship with the company and increase the probability
More DetailsDig DeeperGap Management Strategy Development
Your gap management strategy depends on your expectations for interest rates, your tolerance for risk, and your existing asset/liability position. A successful gap management strategy means maximizing profits while minimizing gap. The four major strategies are: accept margin fluctuations; manage the gap over rate cycles; achieve gap targets with typical assets or liabilities; or achieve gap targets by hedging. Changes
More DetailsDig DeeperProject Financing Features
Project finance is used to finance a wide variety of major projects, including electric power plants, offshore oil production platforms, mines, factories, and telecommunications systems. In a project financing, the project being constructed generates the cash flow which will repay the financing. Lenders expect to be paid solely from the cash flow produced by the project and to be secured
More DetailsDig DeeperEarly Warning Indicators for Debt in Distress
Bankers never intend to have a problem loan; but, inevitably, some loans will become problem loans. The earlier a possible loss is detected, the more alternatives there are to avoid or reduce economic loss. That's why it is important to know the early warning indicators of credit distress. The financial ratios that provide early warning of credit distress are those
More DetailsDig DeeperFinancial Institutions and Risks
The activities of financial institutions expose them to four primary types of ongoing risks: market risk, credit risk, liquidity risk, and political risk. Market (price) risk is caused by changing market conditions. Credit risk is the exposure to loss from the default or downgrade of a financial or other counterparty instrument. Liquidity risk is the risk that a financial institution
More DetailsDig DeeperImpact of Financing Alternatives
Optimizing capital structure is a matter of minimizing the weighted average cost of capital, within the constraints of the company's business and financial goals. The process is dynamic - as a company's business risk declines, the company can attract a greater variety of financing, with a wider range of prices and conditions. The central job of a company's chief financial
More DetailsDig DeeperM&A Accounting Tax and Regulatory Issues
As of 2001 FASB (the Financial Accounting Standards Board) disallowed use of pooling-of-interests accounting in US mergers and acquisitions and required purchase accounting. In 2005, IASB (the International Accounting Standards Board) applied a similar rule. The primary reasons for the rule change were that the pooling method provided investors with less information; that investors found it difficult to compare companies
More DetailsDig DeeperCorporate Exposure Identification
Financial risk is more than a company's LIBOR-based financing and foreign-currency receivables. It results from a company's business strategy, competitors, and the economy at large. Before trying to quantify a company's exposure, it's important to understand the general types of exposure that the company faces. Exposures can be either tactical (transaction and translation exposures) or strategic (competitive and economic exposures).
More DetailsDig Deeper