Collateralized debt obligation

In the book Debt, by David Graeber, Graeber provides an alternative to the narratives economist want society to believe. One being the idea that money, a unit for measure, was established after the barter system is a view that Graeber characterizes as a perfectly simple and straightforward answer, which is terribly incorrect. (21) The idea that individual traded item for item runs into a few conflicts which explains the creation of money. For instance, say one neighbor has cows, and the other…

Credit risks is a major risk associated with any lending institution. A lending institution relies on customers applying for loans and then making the monthly payments that consist of both principal and interest. However, when these debtors do not pay their monthly payments or when they make late payments, then that is a risk and it will affect the lending operations. An individual that would be in charge of trying to reduce these credit risks is a credit analyst. A credit analyst is responsible…

On the other hand, bond also act as a source of finance. The bond is one of the debt securities (debt instruments) which issued by issuer and sell it to the investors. The bond will act as a loan whereas the issuer is the borrower and the investor is the lender, the coupon is the interest. (Certified Financial Planner, 2015) Every bond will have a maturity date and also the par value. Maturity date (due date) is the date that the loan will be paid off and the par value is the nominal value of a…

into default after nine months of missed payments. At this point, the government can take money from your paycheck or tax return to recover your debt. Nine, you can consolidate your loans into one single payment. And last but not the least, federal loans will be…

In 2003, Opes Prime Stockbroking was founded in a growing margin lending market, where investors borrow money to invest in forms of shares or managed funds, with the security of their existing cash, shares or managed funds. The amount that they are able to borrow depends on their securities on their portfolio, and the Loan to Value Ratio (LVR) and the credit limit depend on the investors’ financial position. Opes Prime Stockbroking lent with a high LVR up to 95%, meaning that a client could…

their education. One thing about student loans that people try to put in the back of their minds is that they all need to be repaid eventually. According to the article, “A Look at the Shocking Student Loan Debt Statistics for 2016,” it mentions that there is $1.26 trillion in U.S student loan debt and the average monthly payment for the student loan can be around $351 for the average 20-30 year old. This money adds up and can be very hard to pay back once you are out of college and looking for…

From time to time in our lives we have all been clients of one service or another. We might be clients of a solicitor, or of an insurance agent. We might be clients of an advice service, for example, because we are in debt or because of relationship difficulties. Most of us have had the experience of being clients of a doctor, although we are then called patients. A service user might feel shy, nervous, hurt, angry, worthless, or insulted. As a service user, we would like to have felt:…

A common negative effect of smoking is the financial toll. A smoker can be put in debt because of purchasing cigarettes. Cigarettes are often expensive. According to The New York Times, “The average pack of cigarettes costs about seven dollars and twenty-five cents” (Maheshwari 2). Most smokers will spend thousands of dollars a year on cigarettes. The average smoker smokes a pack of cigarettes a day. They smoke this much because of the tobacco and nicotine contents. Big tobacco companies put it…

As I was watching James Bond Series, I realized, do I know anything about the bonds? And then I admitted to myself that I do…technically yes!!! Bond: Bond is investing in an entity/asset for a fixed period of time and obtaining additional income through it, like interest. They are one of the perfect ways to increase time value of money. Time Value of Money: As and when the cost/ market value of a product increases the value of money decreases. But through investing money in the investment…

Marriott hotels have been faced with a lot of tradeoffs dealing with their customers for the last few years. The demand of the hotel rooms is usually high and the booking rates are usually high. The problem with the situation comes when the people who have booked the hotels fail to show up or cancel their reservations before their actual arrivals. This usually means a reduction in the revenues collected by the hotel facility. In order to minimize the effects of revenue reduction in the…