What Is Tier 3 Capital? Tier 3 capital is tertiary capital, which many banks hold to support their market risk, commodities risk, and foreign currency risk, derived from trading activities. Tier 3 capital includes a greater variety of debt than tier 1 and tier 2 capital but is of a much lower quality than either…
What Is Subprime? Subprime is a below-average credit classification of borrowers with a tarnished or limited credit history, and which are subject to higher than average interest rates. Lenders will use a credit scoring system to determine which loans a borrower may qualify for. Subprime loans carry more credit risk, and as such, will carry…
Hi Jade, hi Léo, hi Louise, hi all the people who have the same first name as the whole world (well, the whole of France). But basically, why are so many of us with this or that first name? We wanted to investigate this vast subject by offering you possible explanations. I say “possible” because…
Over the past quarter of a century, 401(k) plans have evolved into the dominant retirement plan scheme for most U.S. workers. While many improvements have been made to the structure and features of 401(k) plans since their creation, they’re not perfect. There are issues with the current 401(k) structure that make such vehicles less than…
A credit rating can be the deciding factor on whether a borrower does or does not receive a loan. Good credit ratings allow people, companies, and governments to easily borrow from financial institutions or public debt markets. At the consumer level, banks will usually base the terms of a loan as a function of a…
Financial accounting is the process by which an organization’s revenue, receivables and expenses are collected, measured, recorded and finally reported into a financial statement. This process is designed to accurately reflect business activity; help companies meet legal, fiscal and statutory requirements; present financial accounts to business owners; allow for in-depth financial analysis; and facilitate efficient…
Dow component The Home Depot, Inc. (HD) reports fourth quarter 2019 earnings in Tuesday’s pre-market session, with Wall Street analysts expecting earnings per share (EPS) of $2.11 on revenue of $25.8 billion. Market players will be watching results closely after the home improvement giant missed third quarter revenues and lowered fiscal year 2020 guidance in…
There is a variety of market indexes which function as statistical gauges of the market’s activities. Many investors look at the Dow Jones Industrial Average (DIJA) or the Nasdaq Composite Index as benchmarks or representatives of the stock market as a whole. On the downside, these indices are composed of only 30 and 100 stocks,…
First day of the World Cup without a match. You have lost your haunts, no more matches at 4:00 p.m., nothing to do in the evening for the 8:00 p.m. match… You had already suffered the blow with the end of the first round matches, but this is much worse. This interstellar void of green…