If the lender isn’t so accommodating, they may declare default on the loan, apply penalties, or call the loan — that is, demand that it be paid in full right away. If a business runs into unexpected churn, spends money in the wrong place, or i... Read more
In exceptional situations, the central bank may provide funds to cover the short-term shortfall as lender of last resort. In modern economies, the creation of money is inextricably tied up with the creation of credit, or the process of lending by co... Read more
Hydro One, a large company, has a relatively small risk group to generate risk awareness and communication throughout the firm and to advise the executive team on risk-based resource allocations. Whether it's a people or process failure, these opera... Read more
Acquisitions are typically financed with a lot of debt that ends up being owed by the acquired company. That means the PE firm and its investors can put in a comparatively small amount of cash, magnifying gains if they sell at a profit. The liquidit... Read more
As stated above, the percentage of the haircut is determined by both the counterparty's credit quality and the market risk of the collateral. Also, the term haircut is used when borrowing countries restructure debt by trimming repayments. Countries... Read more
But unlike a sole proprietorship, the business and the owner are legally separate, and the owner isn’t responsible for the liabilities of the LLC. First, private companies don’t raise capital by issuing public equity and debt securities.... Read more
When applying alpha, it's important to compare funds within the same asset class. Comparing funds from one asset class (i.e., large-cap growth) against a fund from another asset class (i.e., emerging markets) is meaningless because you are essential... Read more
Call reports are due no later than 30 days after the end of each calendar quarter. Revisions may be made without prejudice up to 30 days after the initial filing period. Form FFIEC 031 is used for banks with both domestic (U.S.) and foreign (non-U.S... Read more
Wolters Kluwer is a global provider of professional information, software solutions, and services for clinicians, nurses, accountants, lawyers, and tax, finance, audit, risk, compliance, and regulatory sectors. Of course, the personality of the comp... Read more
Locate the value of the company's assets on the balance sheet as of the start of the year. Return on sales is a financial ratio used to evaluate a company's operational efficiency. Return on average assets is an indicator used to assess the profitab... Read more