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Banking

Liquidity Transformation

A type of transformation that involves the use of short-term debts like deposits to finance long-term investments like loans. In other words, it is an intermediation process...

Maturity Transformation

A type of transformation whereby a bank or any similar institutions takes advantage of the upward slope of the yield...

Self-Liquidating Loan

A short-term loan that is extended by a bank to a customer or business so that it is used to...

Crossover Refunding Bond

A bond that is issued for the sake of refinancing an existing bond issue before maturity. The proceeds from the...

Crossover Credit

A credit (in the form of loans, bonds, etc) that fills in the cusp between an investment-grade credit and a...

Ability To Pay

In general, it is the capacity of an individual or entity to meet future obligations from earnings or income. In...