CHICAGO Marriott Corp. Spinoff (A) by Professors Robert Gertner and Steven Kaplan On October 5, 1992, the Marriott Corporation announced plans to spin off its profitable hotel management business leaving its real estate assets as part of the successor corporation. At first glance the deal did not seem very different from many other corporate restructurings. However, because much of Marriott's existing debt was to become an obligation of the real estate assets only, the default risk on that debt
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STUDENT DECLARATION This is to certify that I have completed the Project titled “A STUDY ON HOME LOANS” under the guidance of “Mr. Amit Kumar Gupta” in the partial fulfillment of the requirement for the award of the degree of “Masters in Business Administration” from “Rukmini Devi Institute Of Advanced Studies, New Delhi.” This is an original work and I have not submitted it earlier elsewhere. RAJNI
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CHAPTER 16 Securitizations Introduction In October 1990, one year after the Resolution Trust Corporation (RTC) was created, a securitization program was established to facilitate the sale of mortgage loans. This chapter focuses on the creation, development, and performance of this program. Overview Mortgage loans were the largest single category of assets in the RTC’s inventory. In August 1990, the total volume of those loans held in RTC-controlled institutions was estimated to be more than
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Introduction The current state of the world economy is quite uncertain. Economic statistics that governments and other financial institutions use to project the economy imply that the world economy is shrinking. Since 2008, the state of the American economy has not been attractive. For instance, the United States economy has not registered any significant growth for the last three years. The 2011 second quarter results indicated that gross domestic product improved by 1%. At the same time, there
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Published by The University of North Carolina’s TECHNOLOG DEVELOPMENT OGY SMALL BUSINESS AND TECHNOLOGY DEVELOPMENT CENTER Star t-Up Resource Guide Starting a business in North Carolina Get your free download of this publication at www.sbtdc.org/pdf/startup.pdf Publication Data © 2009 by the University of North Carolina’s Small Business and Technology Development Center 5 West Hargett Street, Suite 600 Raleigh, North Carolina 27601-1348 Phone 919/715-7272 or 800/258-0862
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debenture? Why do you think that this is the most common form of corporate bond in the United States? Is it is much less commonly used elsewhere? A13-7. Corporations issue bonds to raise money to expand their businesses, cover operating costs, or finance corporate takeovers or reorganizations. Corporate bonds are debt obligations issued by corporations. Corporate bonds may be either secured or unsecured. Debentures are unsecured bonds, which means that bondholders have nothing but the corporation's promise
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first nine days of October 2008. Major stock markets in other countries had plunged alongside the Dow. Credit markets were nearing paralysis. Companies began to lay off workers in droves and were forced to put off capital investments. Individual consumers were being denied loans for mortgages and college tuitions. After the nine day U.S. stock market plunge, the head of the International Monetary Fund had some sobering words: “Intensifying solvency concerns about a number of the largest U.S.-based and
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expected cash flows, discount rate and the timing of these cash flows. 8) explain the difference between each of the follow a. The money market is a financial market of short-term instruments having a maturity of one year or less. The capital markets contain debt and equity instruments with more than one year to maturity; b. The primary market deals with newly issued financial claims, whereas the secondary market deals with the trading of season issues (ones previously issued in
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state taxes if the holder is a resident of the issuing state. Munis bonds carry interest rates that are considerably lower than those on corporate bonds with the same default risk Foreign bond – are issued by foreign governments or foreign corporations. Foreign corporate bonds are of course exposed to default risk, and so are some foreign government bonds. An additional risk exists if the bonds are denominated in a currency other than that of the investor’s home currency b) Par value
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The Evolution of Banking Banks are just one part of the world of financial institutions, standing alongside investment banks, insurance companies, finance companies, investment managers and other companies that profit from the creation and flow of money. As financial intermediaries, banks stand between depositors who supply capital and borrowers who demand capital. Given how much commerce and individual wealth rests on healthy banks, banks are also among the most heavily regulated businesses
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