Securitization is defined as a method of hedging financial bets by bundling assets and selling bonds backed by current and future revenue from these assets. Corporations that securitize assets derive several benefits: 1. The asset is removed from the balance sheet. 2. The use of securitization reduces reliance on unsecured debt, specifically commercial paper. 3. It increases liquidity. As the securitization market has grown, accounting standards have developed. In late 2000, FASB issued a new accounting standard to govern securitization, SFAS 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. SFAS 140 follows the current system of rules-based accounting standards. There is no easy way to account for securitization. Because it is such a po...
...'s unaudited condensed consolidated balance sheets are as follows:. December 31, 2010 . Decemb...Less reliance on wholesale funding, initiated by our culture of ...
... stream, which could result in further reliance on general airport revenues or use of the authoritty's balance sheet. Current estimates indicate debt per enplane...
... stream, which could result in further reliance on general airport revenues or use of the authoritty's balance sheet. Current estimates indicate debt per enplane...
... asset portfolios lies in their recent reliance upon increasingly complex securities packages that... troubled mortgage-backed assets on their balance sheets. That could mean that the troubled regional...
...; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not ...
This Essay discusses two historical parallels between the current financial crisis and the financial crisis of the late 1920s and 1930s. First, financial innovation was at the core of both crises. In particular, the machinations of Ivar Kreuger illuminate how financial innovation tends to outstrip the ability, and perhaps the willingness, of investors and intermediaries to process information. Second, reliance on credit ratings began as a response to the 1929 crash and became a primary cause of the recent crisis. During the 1930s, regulators developed rules based on credit ratings; those rules are the ancestors of today's widespread regulatory reliance on ratings. Without financial innovation and overreliance on credit ratings, the recent crisis likely would not have occurred, and certa...
..., in many ways, both the inventor of off-balance-sheet financing techniques and the original Bernar...
...; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not ...
... of the company, including the degree of reliance on short-term funding; . The extent and type of offf-balance sheet exposure of the company; . The extent and ty...
... stream, which could result in further reliance on general airport revenues or use of the authoritty's balance sheet. Current estimates indicate debt per enplane...
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