What Is Structured Finance? Structured finance is a heavily involved financial instrument presented to large financial institutions or companies with complicated financing needs who are unsatisfied with conventional financial products. Since the mid-1980s, structured finance has become popular in the finance industry. Collateralized debt obligations (CDOs), synthetic financial instruments, collateralized bond obligations (CBOs), and syndicated…
What Is a Maturity Date? The maturity date is the date on which the principal amount of a note, draft, acceptance bond or other debt instrument becomes due. On this date, which is generally printed on the certificate of the instrument in question, the principal investment is repaid to the investor, while the interest payments…
Although aerospace and defense stocks came back to earth as fast as a failed missile launch last week, the sector remains underpinned by favorable fundamentals. President Donald Trump, a proponent of a strong U.S. military, allocated generously to the 2020 defense budget, ramping up the Pentagon’s spending power to $738 billion – an increase of $21…
What Is Business-to-Business (B2B)? Business-to-business (B2B), also called B-to-B, is a form of transaction between businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business-to-business refers to business that is conducted between companies, rather than between a company and individual consumer. Business-to-business stands in contrast to business-to-consumer (B2C) and business-to-government…
What Is a Fidelity Bond? A fidelity bond is a form of business insurance that offers an employer protection against losses that are caused by its employees’ fraudulent or dishonest actions. Also known as an “honesty bond,” this form of insurance can protect against monetary or physical losses. In Australia, a fidelity bond is called…
What Is Investment Style? Investment style is the method and philosophy followed by an investor or money manager in selecting investments for a portfolio. Investment style is based on several factors and typically tends to be based on parameters such as risk preference, growth vs. value orientation, and/or market cap. The investment style of a…
What Is a Fairness Opinion? A fairness opinion is a report that evaluates the facts of a merger, acquisitioncarve-out, spin-off, buybackor another type of business purchase. It provides an opinion about whether or not the proposed stock price is fair to the selling or target company. Key Takeaways A fairness opinion is a report regarding the…
Long- and short-end bond prices have soared to all-time highs in reaction to the coronavirus outbreak and Tuesday’s surprise 50-basis-point rate cut by the Federal Reserve. Bond yields have dropped to new lows at the same time, lowering the cost of mortgages and other debt instruments. Many analysts now predict that interest rates will eventually…
IATA predicts 2020 global revenue losses up to $113 billion Airlines struggle to fill seats, cancel flights to save money Millennials may have killed many industries, but airlines have only the coronavirus outbreak to blame for their suffering. Let’s face it, no one wants to get on a plane and touch those trays these days….