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What Is the Difference Between CMO and MBS?

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

Is a CMO a Pass-Through Security?

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

What Is LIBOR and Why Is It Used?

LIBOR (or Libor) refers to the London interbank offered rate, which is an interest rate quoted by the most creditworthy...

What Is Factoring?

Factoring is a financial transaction in which a firm sells its accounts receivable to a third party (the factor) for...

Why Use the Coupon Equivalent Rate?

The coupon equivalent rate is a measure of yield that is typically used to make discount instruments (ones that are...

What Is the Difference Between Term Bonds and Serial Bonds?

A term bond is a series of bonds that are issued by the same borrower and mature on the same...

What Is the Difference Between Eurobonds and Foreign Bonds?

A Eurobond is a bond that is issued by an international borrower and sold to investors in countries with currencies...

What Is the Difference Between Entry Price and Exit Price?

Entry price refers to the purchase price of an asset/ liability that is determined based on the amount required to...