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What Are the Functions of Securitization?

Securitization is a type of structured finance that involves the pooling of assets (or specific types of assets such as...

Why Use a Tranche Thickness Loss Multiple?

In relation to a tranche and tranche thickness, a TTLM (tranche thickness loss multiple) is the loss coverage multiple defined...

Why Is TTLM Used?

In relation to a tranche and tranche thickness, a TTLM (tranche thickness loss multiple) is the loss coverage multiple defined...

Why Are CMOs Important?

A CMO (collateralized mortgage obligation) is a structured product that is backed and collateralized by a pool of mortgage loans...

Why Is a CMO Known as a Customized Security?

A CMO (collateralized mortgage obligation) is a structured product that is backed and collateralized by a pool of mortgage loans...

What Is Bond Yield?

Bond yield is the rate of return that accrues on a bond, which is determined by interest payments and any...

What Is The Difference Between Reserve and Provision?

A reserve is an account that appears on liability and owners’ equity side of the statement of financial position (balance...

What is the Difference Between Ijara Muntahia Bittamleek and Ijara Thumma Bay’?

In ijara muntahia bittamleek (ijara that ends with ownership), the lease agreement is associated with the option (khiyar) to own...

Why Does Negative Goodwill Arise?

Negative goodwill (NGW) arises when an entity acquires another for less than the book value of its assets and liabilities....

What Is the Difference Between a Pass Through and a CMO?

A CMO (collateralized mortgage obligation) is a structured product that is backed and collateralized by a pool of mortgage loans...