Fixed rate versus floating rate asset backed securities, Financial Management

There are fixed as well as floating rate asset-backed securities. A floating rate asset-backed security is one whose underlying pool consists of loans or receivables carrying a floating rate. Examples of this kind are, securities backed by credit card receivables, student loans, trade receivables, home equity loans, etc. On the other hand, a fixed rate asset-backed security is structured in such a way that the underlying pool consists of fixed-rate loans but the security is divided into one or more floating rate tranches. For example, equity loans carrying fixed rate can be pooled to create a structure with floating-rate tranches.

Posted Date: 9/8/2012 9:06:33 AM | Location : United States







Related Discussions:- Fixed rate versus floating rate asset backed securities, Assignment Help, Ask Question on Fixed rate versus floating rate asset backed securities, Get Answer, Expert's Help, Fixed rate versus floating rate asset backed securities Discussions

Write discussion on Fixed rate versus floating rate asset backed securities
Your posts are moderated
Related Questions
Financial Management: Financial management is, in its most basic interpretation, the management of costs against revenue. Other management initiatives, such as marketing, are d

Determine in brief about Venture capitalists Venture capitalists are organisations which take on risky business ventures. They provide finance for and generally require a high

there are 3 compaies i have to find out the price of equity share by using walters and gordons model.

How can a price ceiling make consumers better off?  Under what conditions might it make them worse off? If the supply curve is completely inelastic a price ceiling will raise c

Goodshape Company has currently, an ordinary share capital of Rs. 2.5 million, consisting of 25,000 shares of Rs. 100 each. The management is planning to raise another Rs. 2 milli

Offshore Financial Center It is a location with banking facilities to accept deposits and make loans in currencies various from the currency's country of origin. Banks located

Borrowing Funds to Purchase Bonds There are several sources available to borrow funds. When securities are purchased with borrowed funds then the mo

Chrysler decides to avoid the problems associated with exporting autos to Japan by building a plant in Japan. The cost is expected to be $1 billion with $500 million to be spent no

1.      Consider the following two investment alternatives   Net cash flow   End of year Machine A Machine

Determine about the Systems based audit Systems based audit is useful as it would help identify risks within the processes in an organisation and review how adequate the contr