Generally, a financing technique in which – an amount of cash or of – first-class – paper is deposited, – from which the creditor can withdraw the interest from the loan granted (the borrower deposits a portfolio of assets to a creditor. The portfolio of assets is designed to meet interest payments and repay the principal of the debt. By this, the assets are risk-free assets or low risk). – Corresponding contracts can also be concluded between a bank and a special purpose entity set up by it. – In the course of the subprime crisis, this form of financing fell into disrepute. This is because many of the securities deposited, which had been classified as first-class by rating agencies, suddenly turned out to be worthless. But even the loans granted could not now be reclaimed because the borrowers – mainly special purpose vehicles and funds – had spent the money to buy securities that likewise sank to zero value: the money had in fact largely flowed into luxury consumption on the way to decapitalization. – See credit enhancement, loan-versus-paper business, Diamond thesis, first-loss tranche, credit derivative, originate-to-distribute strategy, originator, pool, reintermediation, repackaging, rebound effect, true-sale securitization, submarine effect, securitization, securitization, traditional.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/
Passende Formel
Annuitätentilgung
Konstante Annuität, Zinsanteil, Tilgungsanteil und Restschuld berechnen.
Formel vollständig öffnen