The position of buying loans in the secondary market
Course:- Business Economics
Reference No.:- EM131101686

Assignment Help
Assignment Help >> Business Economics

Imagine that you are in the position of buying loans in the secondary market (that is, buying the right to collect the payments on loans made by banks) for a bank or other financial services company. Explain why you would be willing to pay more or less for a given loan if: a. the borrower has been late on a number of loan payments b. interest rates in the economy as a whole have risen since the loan was made c. the borrower is a firm that has just declared a high level of profits d. interest rates in the economy as a whole have fallen since the loan was made.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Consider a model economy with just two individuals, Fred and Wilma. They both like to eat bread and cake. They each bake 10 hours a week. If Wilma spends all her time baking b
Compare and contrast the major trade policies of the United States with those of another country. Please include sources. What are the major trade policies for each country? W
Wilson has been producing tennis racquets for many decades and continues to implement strategies that make it a leader in the tennis racquet industry. Suppose that when wilson
Horsehead, Massachusetts lies on a bay inhabited by lobsters. The town council issues permits for trapping lobsters and is trying to determine how many permits to issue. Graph
Find the cost functions for the following firms: A firm with production function f(x1,x2) = min{ 2xl,3x2} A firm with production function f(xl,x2) = 2x1 +3x2 A firm with pro
What are the external effects ( externalities ) and why they can lead to inefficiencies and government intervention in the markets . Why are some government policies to manage
Explain the basis of one of the Leading Economic Indicators. What local indicators of improved economic conditions might one see in his or her local community, town or city?
Examine the major benefits for an organization to use SSDs. Analyze the major disadvantages and possible hazards that an organization should consider before adopting SSDs.