Month: October 2020

A negative bond yield is an unusual situation in which issuers of debt are paid to borrow. At the same time, depositors, or buyers of bonds, pay a cash flow instead of receiving interest income.

Currency is a medium of exchange for goods and services. In short, it’s money, in the form of paper or coins, usually issued by a government and generally accepted at its face value as a method of payment.

A receivership is a court-appointed tool that can assist creditors to recover funds in default and can help troubled companies to avoid bankruptcy. In the first instance, having a receivership in place makes it easier for a lender to recover funds due to them when a borrower defaults on a loan. In the second case, a receivership may occur as a step in a company’s restructuring process, with the goal of returning the company to profitability. A receivership could also arise during a shareholder dispute to complete a project, liquidate assets, or sell a business, for example. read more

Garage liability insurance is specialty insurance targeted to the automotive industry. Automobile dealerships, parking lots or parking garages operators, tow-truck operators, service stations, and customization and repair shops will add garage liability insurance to their business liability coverage. The policy protects property damage and bodily injury resulting from operations.

A jumbo pool is a pass-through Ginnie Mae II mortgage-backed security (MBS) which is collateralized by multiple-issuer pools. These pools combine mortgage loans with similar characteristics and are more massive than single-issuer pools. The mortgages contained in jumbo pools are more diverse on a geographical basis than are those in single-issuer pools.

The 25% rule is the idea that a local government’s long-term debt should not exceed 25% of its annual budget. Any debt beyond this threshold is considered excessive and poses a potential risk, as the municipality may have trouble servicing the debt.

An employee buyout (EBO) is when an employer offers select employees a voluntary severance package. The package usually includes benefits and pay for a specified period of time. An EBO is often used to reduce costs or avoid or delay layoffs.

A headhunter is a company or individual that provides employment recruiting services. Headhunters are hired by firms to find talent and to locate individuals who meet specific job requirements. The term headhunter may also be referred to as an executive recruiter, and the function they perform is often called executive search. Headhunters may have a pool of candidates for specific positions or may act aggressively to find talent by looking at competitors’ employees. Employers tend to enlist headhunters when they are unable to find the right person to fill a role on their own. read more

A protective put is a risk-management strategy using options contracts that investors employ to guard against the loss of owning a stock or asset. The hedging strategy involves an investor buying a put option for a fee, called a premium.

Going public is the process of selling shares that were formerly held privately and are now available to new investors for the first time. Otherwise known as an initial public offering (IPO).