Author : EconomyWatch Content

    Distressed debt or securities are issues of companies that are on the verge of a financial breakdown or have already filed for bankruptcy protection. For issuers, distressed...

The credit derivative market serves as a bridge between commercial banks and other financial institution, such as mutual funds operators or insurance companies. From being a $40 billion market...

    When a company is undertaking a large transaction, it can break down the payment on the deal into small portions or tranches. Tranching enables investors to participate...

A tranche is one of the several securities offered as part of a financial transaction. Tranches are often used in large transactions such as collateralized mortgage obligations (CMO). They...

The historical performance and the rate of return on Student Loan Asset Backed Securities (SLABS) have been quite impressive due to the high proportion of government sponsored loans backing...

    Investor interest in US residential mortgage backed security (RMBS) has waned after the 2007 housing crisis. An RMBS represents claims on cash flows from residential property mortgage...

    A Mortgage Backed Security (MBS) represents claims on cash flows from mortgage loans generally related to residential property and is usually issued by a government backed agency....

    Leverage is the use of debt to supplement investment. Also known as gearing or levering, leveraging is used to maximize thepotential return on an investment. Leverage can...

Credit card receivables ABS is a primary source of funding unsecured revolving consumer credit. The certificates or bonds issued in this case are backed by credit card receivables of...

 Commercial paper is an unsecured promissory note, which is issued by banks and large financial institutions to arrange money to meet their short terms needs. Commercial paper is issued...