- MBS are interest rate path dependent, thus you can't use backward induction - cheap securities have high OAS relative to the required OAS and low option costs (for a given Z-spread and effective duration) Tranches trading at a premium ...
In credit analysis, collateral assessments are most likely to be a significant concern if a company:A.Has stock that is trading below book valueB.Carries high-quality intangibles on its balance sheetC.Reports large capital expenditures relative to depreciation expense Has stock that is trading below...
Definition Fixed costs, in economics, are explained as business expenses which do not depend on the level of goods and services proffered by a business. These costs have a propensity to be time-related. Management...
3 of 3 factors that determine depreciation. Also called crap vale, salvage value, or trade-in value revenue expenditures Costs that benefit only the current period or costs incurred for normal maintenance and repairs of fixed assets. straight-line method (of depreciation) A method of ...
are purchased by an entity that then issues securities supported by the cash flow from these financial assets. So reduction of funding costs for firms selling the financial asset to securitizing entity and increase in liquidity of underlying financial assets.If a bank makes mortgage loans and ...