What is a total return swap? What advantages does it offer the swap beneficiary institution?
Answer to relevant QuestionsOf what use are credit-linked notes? What are the risks of using loan sales as a significant source of funding for banks and other financial institutions?GoodLife National Bank placed a group of 10,000 consumer loans bearing an average expected gross annual yield of 6 percent in a package to be securitized. The investment bank advising GoodLife estimates that the securities ...What types of investment securities do banks seem to prefer the most? Can you explain why?What is the net after-tax return on a qualified municipal security whose nominal gross return is 6 percent, the cost of borrowed funds is 5 percent, and the financial firm holding the bond is in the 35 percent tax bracket? ...
Post your question