Tag: house

Global Recovery Rate definition explanation

What is Global Recovery Rate?
A global measurement in the proportion of businesses that managed to recover more than 60% of their financial losses arising from corporate fraud. Acquiring economic crime insurance and earlier detection of fraudulent activities from controls is two of the best methods in increasing the likelihood of recovering stolen assets. Read more for examples and further explanation including related video clips and also comments
Continue reading “Global Recovery Rate definition explanation”

Illiquid definition explanation

What is Illiquid?
The state of a security or other asset that cannot easily be sold or exchanged for cash without a substantial loss in value. Illiquid assets also cannot be sold quickly because of a lack of ready and willing investors or speculators to purchase the asset. The lack of ready buyers also leads to larger discrepancies between the asking price (from the seller) and the bidding price (from a buyer) than would be found in an orderly market with daily trading activity. Read more for examples and further explanation including related video clips and also comments
Continue reading “Illiquid definition explanation”

Microeconomics definition explanation

What is Microeconomics?
The branch of economics that analyzes the market behavior of individual consumers and firms in an attempt to understand the decision-making process of firms and households. It is concerned with the interaction between individual buyers and sellers and the factors that influence the choices made by buyers and sellers. In particular, microeconomics focuses on patterns of supply and demand and the determination of price and output in individual markets (e.g. coffee industry). Read more for examples and further explanation including related video clips and also comments
Continue reading “Microeconomics definition explanation”

Structured Investment Vehicle – SIV definition explanation

What is Structured Investment Vehicle – SIV?
A pool of investment assets that attempts to profit from credit spreads between short-term debt and long-term structured finance products such as asset-backed securities (ABS). Funding for SIVs comes from the issuance of commercial paper that is continuously renewed or rolled over; the proceeds are then invested in longer maturity assets that have less liquidity but pay higher yields. The SIV earns profits on the spread between incoming cash flows (principal and interest payments on ABS) and the high-rated commercial paper that it issues. SIVs often employ great amounts of leverage to generate returns.

Also known as “”conduits””. Read more for examples and further explanation including related video clips and also comments
Continue reading “Structured Investment Vehicle – SIV definition explanation”

Account Aggregation definition explanation

What is Account Aggregation?
A process by which accounts are linked for the purpose of combining fees or to ease access for account holders. One form of account aggregation is householding, whereby all the savings, checking and brokerage accounts of a household are linked. In householded accounts, statements and online summaries display all accounts within the household. Read more for examples and further explanation including related video clips and also comments
Continue reading “Account Aggregation definition explanation”