Hurdle Amountfor any period during a calendar year means that amount that results in a 5% annualized internal rate of return on the Net Asset Value of the Partnership Units outstanding at the beginning of the then-current calendar year and all Partnership Units issued since the beginning of the...
The household sector does no borrowing in this stripped down setup so its net worth, \(J^h\), consists of its holdings of money and bonds. It is easy to show using the balance sheet identities that the money multiplier in a world of Jimmy Stewart banking expresses a ratio between the ...
The stake of entrepreneurs is relevant to determine the EFP on two grounds: (a) the ratio of entrepreneurial net wealth to collateral value influences the total managerial cost; and (b) entrepreneurs' net worth (fraction of total collateral) helps mitigate the EFP from extracting rebate from ...
Marketing collateral is a collection of media used to educate prospects and customers about how their challenges can be solved.
Define Counterparty Collateral Account Cash Balance. means at any time the aggregate of all cash denominated in euro standing to the credit of the Counterparty Collateral Account (including interest accrued thereon and credited to that account, if any),
It follows that agents are not able to perfectly smooth consumption in reaction to shocks, and business cycle fluctuations are likely to be amplified. This financial accelerator effect, whereby shocks to the net worth of agents have procyclical effects on their borrowing capacity, thus amplifying ...
Financially constrained firms, i.e., firms with low net worth, lease capital because they value the higher debt capacity; indeed, severely constrained firms lease all their tangible capital. Over time, as firms accumulate net worth, they grow in size and start to buy capital. Thus, the ...
It currently has over 165,000 users, has funded over 3,200 loans and originated loans worth over $15 million. The company is also fully regulated and it received its BaFin Licence in 2016. The platform works like any other peer-to-peer lender. Here’s how: ...
housing market since 2000 and corresponding oscillations in home equity values profoundly affected the net worth and borrowing capacities of individual households. I develop a quantitative model where changes in house prices influence households' borrowing capacities, which in turn influence the entry-exit...
In a HVE (relative to the LVE) the volume of buy-to-let investment, the price-to-rent ratio and the housing price are higher while the interest rate is lower. Due to binding borrowing constraints, in a HVE further reductions in the interest rate only bear a positive networth effect ...