The automotive industry consists of many companies that span the globe, with a total value of $2.7 trillion. The industry includes not only the major auto manufacturers but a variety of firms whose principal business is related to the manufacturing, design, or marketing of automotive parts or vehicles. Since these companies make similar products and…
What Is the Average Daily Rate (ADR)? The average daily rate (ADR) is a metric widely used in the hospitality industry to indicate the average revenue earned for an occupied room on a given day. The average daily rate is one of the key performance indicators (KPI) of the industry. Another KPI metric is the…
What Is a Senior Note? A senior note is a type of bond that takes precedence over other debts in the event that the company declares bankruptcy and is forced into liquidation. Because they carry a lower degree of risk, senior notes pay lower rates of interest than junior bonds. Key Takeaways Senior notes are…
What Is a Semivariance? Semivariance is a measurement of data that can be used to estimate the potential downside risk of an investment portfolio. Semivariance is calculated by measuring the dispersion of all observations that fall below the mean or target value of a set of data. Semivariance is an average of the squared deviations…
What Are Foreign Exchange Reserves? Foreign exchange reserves are assets held on reserve by a central bank in foreign currencies. These reserves are used to back liabilities and influence monetary policy. It includes any foreign money held by a central bank, such as the U.S. Federal Reserve Bank. Key Takeaways Foreign exchange reserves are assets…
What Is Lender of Last Resort? A lender of last resort (LoR) is an institution, usually a country’s central bankthat offers loans to banks or other eligible institutions that are experiencing financial difficulty or are considered highly risky or near collapse. In the United States, the Federal Reserve acts as the lender of last resort…
What Is a Dirty Float? A dirty float is a floating exchange rate where a country’s central bank occasionally intervenes to change the direction or the pace of change of a country’s currency value. In most instances, the central bank in a dirty float system acts as a buffer against an external economic shock before its effects…
Tesla, Inc. (TSLA) shares rose more than 4% during Tuesday’s session as analysts debate the impact of lower oil prices and COVID-19 on future revenue and profitability. Wedbush’s Daniel Ives noted that some customers may stay away from electric vehicles (EVs) given cheaper gas prices, but the larger environmental movement and next-generation technology offset many…
What Is Midstream? Midstream is a term used to describe one of the three major stages of oil and gas industry operations. Midstream activities include the processing, storing, transporting and marketing of oil, natural gas, and natural gas liquids. The two other major stages are upstream, which refers to raw crude oil and natural gas…