MORTGAGE BACKED BOND (MBB) WHAT IS IT MBBs are the third asset securitization vehicles. They differ from pass-thru and CMOs in 2 key dimensions: 1. Pass thru’ and CMOs remove mortgages from bank’s balance sheets as forms of offbalance sheet securitization. 1. MBBs normally remain on the balance sheet 2. Pass thru’ and CMOs have a direct link between the cash flows on the underlying mortgages and the cash flows on the bond vehicles 2. For MBBs‚ there is no direct link between the cash flow on
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Existing lease accounting standards require lessees to classify their lease contracts as either finance or operating leases. If a lease is classified as a finance lease‚ assets (and liabilities) are recognized in its statement of financial position. For an operating lease‚ the lessee simply recognizes lease payments as an expense over the lease term. This split into finance and operating leases has given rise to a number of problems. The International Accounting Standards Board (IASB) and the
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sum(Balance) by left(Account‚ 2) COMPUTE sum(Balance); Kudler Fine Foods Balance Sheet November 08‚ 2010 Assets Current Assets: Cash Accounts Receivable Less: Reserve for Bad Debts Merchandise Inventory Prepaid Expenses Notes Receivable $86‚000 $0 $1‚430‚000 $86‚000 $429‚000 $26‚000 $0 Total Current Assets $1‚971‚000 Fixed Assets: Vehicles Less: Accumulated Depreciation Furniture and Fixtures Less: Accumulated
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Landlords - Pawn Brokers too‚ Now what is known to be financial systems‚ They are business organisations serving as a link between savers and investors and help in credit allocation process. They provide three transformational services - Liability‚ asset and size transformation - Maturity transformation. - Risk transformation.. Fianncial Markets what is that - It is a mechanism for trading of financial product under a policy framework. Main participant are borrowers‚ lenders and financial
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While examining the financial statements‚ more specifically the debit/asset ratio‚ I have also observed that in 2008 Wal-Mart had liability of 98‚906 million‚ and asset of 163‚514 million‚ which resulted in a debit asset ratio of .6‚ while in the year 2009 the liability declared was 98‚144 million‚ and asset of 163‚429 million which also resulted in a debit asset ratio of .6. Once again this proves stability in the debit/asset ratio in these 2 years by maintaining a steady rate of .6. In
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Financial Analysis of Macy’s Inc. and Nordstrom Macy’s Inc. has established itself as a strong player in the retail industry‚ with over 850 Macy’s and Bloomingdale’s stores in 45 states. Macy’s competes against retail giants like Nordstrom‚ Kohl’s‚ JC penny and Saks Fifth Avenue for market share in the increasingly competitive department store industry. This financial report will choose Nordstrom as the major competitor‚ and serves as the comparison company. The annual report and 10-K filings
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following ratios is not generally considered to be helpful in assessing short-term liquidity? A. Acid-test ratio B. Current ratio C. Days’ to collect receivables D. Total asset turnover 2. Which of the following statements is incorrect? A. Current assets are expected to be converted into cash sooner than noncurrent assets. B. Equity investors have unlimited downside exposure if the company declares bankruptcy. C. Paid-in capital of company is not affected by the payment of dividends. D.
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1.09 6.07*100/9.08 DFL (2009) =3.72*100/5.36 = 69.4/81.1 =0.8 5.09*100/6.27 DFL (2008) = 1.43*100/3.93= 36.3/41.92 =0.86 1.85*100/4.413 FINANCIAL RATIOS OF APPLE (2011) PROFIT MARGIN= NET INCOME/SALES =25.92*100/108.6 =23.8% TOTAL ASSET TURNOVER= SALES/TOTAL ASSETS= 108.6/116.37=0.93 FINANCIAL RATIOS (2010)
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Questions: Chapter Seven Chapter 7 1‚ 2‚ 3‚ 7‚ 11‚ 13‚ 19‚ 22‚ 29‚ 32‚ 33‚ problem similar to HW 1. What is the process of asset transformation performed by a financial institution? Why does this process often lead to the creation of interest rate risk? What is interest rate risk? Asset transformation by an FI involves purchasing primary assets and issuing secondary assets as a source of funds. The primary securities purchased by the FI often have maturity and liquidity characteristics that are
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Section 1 – Sources of Finance There are 4 main types of business ownership: • Sole trader • Partnership • Private limited company (Ltd) • Public limited company (Plc) Each of these types of business needs to raise finance for capital investment Sole Trader This is a business that is owned by one person. Sole Traders are responsible for raising all the finance to set up and run the business. Usually a sole trader would be for a small business/ (businesses with a flat
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