Examples of Structured Finance Products

Examples of Structured Finance Products

Structured finance products are a broad category of financial instruments that provide investors with exposure to underlying assets, typically by investing in a small amount. These products may offer high returns but also come with high risks and costs.

The products can be based on market indices, currencies, commodities, interest rates or a combination of these. They can also incorporate embedded derivatives such as options and futures.

Guaranteed Deposits

A deposit is a sum of money that a customer keeps in his or her bank account. A deposit guarantee scheme protects the deposits of all depositors, regardless of their citizenship or place of residence.

The European Union has harmonised deposit-guarantee schemes since 1994. This is in response to the financial crisis, which showed that bank failures did not stop at national borders.

Directive 94/19/EC requires all Member States to have a deposit guarantee scheme for at least 90% of the deposited amount, up to 20,000 euros per person. The new directive, Directive 2014/49/EU, maintains this level but increases the maximum compensation to EUR 100,000.

Depositors are informed when a bank becomes insolvent and the deposit guarantee scheme is triggered. This is done through public information, such as press releases and the bank’s website.

Credit Default Swaps (CDSs)

Credit Default Swaps (CDSs) are derivative contracts that allow buyers to shift the risk of default on debt securities. They’re often used to protect against the default of high-risk government bonds, corporate debt and sovereign debt.

CDSs can be bought and sold by banks, insurance companies and others in the financial industry. They can be purchased for hedging, arbitrage and speculation.

The CDS market was a major contributor to the global financial crisis of 2008-2010. The market’s opacity allowed some firms to hold more risk than they could handle and others to be …

Examples of Structured Finance Products Continue Reading >>>
Top 5 US Banking Stocks

Top 5 US Banking Stocks

Banking stocks are typically more volatile than other sectors, but they can also have a lot of upside potential. These are companies that offer a wide range of services for both consumers and investors.

Bank stocks are generally favored by value investors because they often pay high dividends and offer a lot of growth in earnings per share over time. They also usually have lower regulatory risks than other types of stocks.

Bank of America

Bank of America is a large and well-diversified financial institution serving consumers, businesses, governments and institutions worldwide. It provides a full range of banking, investment and asset management products and services.

It offers savings and current accounts, investments, lending facilities, credit cards, mortgages and other consumer and commercial financial services. It is a member of the S&P 500.

The company’s operations and management are divided into five divisions: Retail Banking, Commercial and Global Markets, Financial Institutions, Global Transaction Services and Wealth Management.

Consumer Banking is the largest of the divisions and accounts for 38% of the company’s total revenue. The company’s retail divisions offer consumer deposit accounts, a wide range of loans and credit cards, mortgage services, merchant services and brokerage services.

The company’s net income rose to $7.1 billion in Q4 2022, topping analysts’ expectations. The results were driven by higher interest rates and loan growth. Expense management also helped drive operating leverage for the sixth consecutive quarter, CEO Brian Moynihan said in a statement.

Citigroup

Citigroup, based in New York, is a diversified financial services holding company. It serves consumers, corporations, governments, investors, and institutions in more than 160 countries and jurisdictions.

The company has two segments: Global Consumer Banking and Institutional Clients Group. The former offers traditional banking products and services to retail customers through local branches, offices, and electronic delivery systems. …

Top 5 US Banking Stocks Continue Reading >>>
Pick The Best Canadian Receivables Factoring and Financing! Cost and Prices Of Invoice Finance

Pick The Best Canadian Receivables Factoring and Financing! Cost and Prices Of Invoice Finance

We encountered an awesome term the other day to business financing – the term was ‘ expansionary finance ‘. Is it just us or does this term look to completely cover off factoring and receivables financing?

Frequently even though three key troubles come up when Canadian organization owners and monetary managers consider this sort of financing. What are these 3 challenges? They may be the total expense of this type of financing, the prices related to this facility, and almost certainly most importantly what type of firm offers the top facility to match your company’s precise wants.

Let’s understand and cover off these troubles, that will let you get far more comfortable we think with this sort of Canadian company financing.

So, why should you even be considering receivables factoring? Because it has to turn into a prevalent way for Canadian enterprises to money flow their accounts receivable and produce operating capital according to your policy of extending credit terms for your prospects.

And, as most organization owners know, sales don’t equal cash flow, and when enterprise financing of the A/R is not available from your bank a logical place to turn to is usually to an independent financial firm that offers invoice financing.

But, what does this sort of financing expense, and who delivers it, and an even improved question… ‘How do you pick The most beneficial factoring companion?

In Canada, the financing and factoring of A/R vary extensively. As a general rule, we can say the cost is between 1-3% monthly based on the size of the facility, your general monetary situation, and most importantly, regardless of whether you might have sought out and picked the finance firm that best suits your desires.

Let’s clarify our comment on your general financial condition. Receivable financing places substantially less emphasis …

Pick The Best Canadian Receivables Factoring and Financing! Cost and Prices Of Invoice Finance Continue Reading >>>
The Best Free Online Personal Finance Tools

The Best Free Online Personal Finance Tools

Proper financial management – most coveted by millions and millions of clients all over the globe. Faced with this tough economy, it is harder than previously to address finances well. But the nice thing about it is always that establishing a solid financial plan for your future has become less costly and attainable. There are a lot of online personal finance tools that you can get to people free to assist them to manage their finances better. These are effective instruments for being financially stable while saving yourself from getting into debt trouble.

In today’s modern time, tracking each detail is very hard and much more difficult when money is the matter. Thus, getting aid from online personal finance tools sounds very beneficial. Also, this equipment comes free and very handy. Calculating your dollars inflow and outflow can be easily carried out in the comfort of your property facing laptop computer.

Personal finance is a method of following your finances inside a streamlined manner. Since listing down with a paper every piece of information about one’s expenditures won’t function better any longer, an individual finance device located online provides much bigger and assistance.

The following are some of the best online personal finance tools from budgeting to checking one’s credit history that you can get to individuals for free:

1.) For Money Budgeting

is probably the most favored and well-loved online for free personal finance tools with the people. With over 8,000 financial company connections worldwide, this online means comes with a wide array of understandable and straightforward to work with tools.

Once you have registered a free account, you get 100% access to the whole finances, for example, your charge cards, grocery bills, loans along with other personal expenses.

It supplies a very detailed tracking program about precisely what …

The Best Free Online Personal Finance Tools Continue Reading >>>

How to Find a Bad Credit Loan Online in 5 Easy Steps

Just about all projects or goals of any size or importance require several steps during a period of time for you to complete. To carry out any complex project or achieve most worthwhile goals will need concentration, dedication and several steps completed over a period of time. Aiming to find a loan if you have a bad credit history is no exception. To find a loan if you have a bad credit history is not a single step project either. But here’s how to achieve that in five simple steps.

Step 1. Always apply through a reputable broker. This is very important because if you apply directly to a lender, you may choose the wrong lender and have to keep re-applying which will register several credit checks on your credit file which could harm your chances. In the event you decide not do this step, by the time you have found a lender that may have been willing to help, by registering several credit checks on your credit record, they may now not want to help.

Step 2. Be totally honest when you complete any application forms online. This can be a very important step. It demands concentration and your full attention. It could be best if you could do it this way: Always compile as much information about any arrears CCJ’s or defaults registered against you before applying, this can be done by acquiring a copy of your credit record. Why this is very important is failing to do so may prejudice the lender against offering you the finance you require.

Step 3. Never apply to more than one place. The reason behind this is to make sure that you do not register too many credit checks too closely together that will raise a flag on your …

How to Find a Bad Credit Loan Online in 5 Easy Steps Continue Reading >>>