Business Finance

Cost of funds refers to the total expense incurred by a financial institution or a company to raise and maintain capital. It represents the interest expense and other costs associated with obtaining and managing funds from various sources. Calculation of Cost of Funds Sources of Funds Cost of funds can arise from various sources, including: […]

Counterparty risk is the risk that the other party in a financial transaction will not fulfill their obligations. This risk arises in various financial transactions, including loans, investments, and derivative contracts. If one party defaults or fails to honor the agreement, the other party could suffer financial losses. Key Features of Counterparty Risk Default Risk

Counter trading is a form of international trade where goods or services are exchanged directly for other goods or services, without using money as a medium of exchange. This type of trade is also known as barter trade. It is often used when there are currency restrictions, a lack of foreign exchange, or when parties

Countervailing Credit is a term used to describe a financial measure or credit issued by a government or a financial institution to offset or counteract the negative impact of another financial transaction or policy. This type of credit aims to balance out economic activities to ensure fairness and stability in the market. Key Features of

Country Risk refers to the potential for financial losses due to changes or instability in a country’s political, economic, and social environment. Investors, businesses, and financial institutions assess country risk to understand the likelihood that changes in a country’s environment could negatively affect their investments or operations there. Components of Country Risk Political Risk Political

Coupon Security is a type of bond that makes periodic interest payments, called coupons, to its holders. These payments are typically made annually or semi-annually and are based on the bond’s face value (par value). At maturity, the bondholder also receives the principal amount of the bond. How Does Coupon Security Work? The Basics When

Coupon Yield is a term used to describe the annual interest rate paid by a bond’s issuer to its bondholders. It is expressed as a percentage of the bond’s face value, also known as its par value. The coupon yield is essentially the bond’s interest payment relative to its face value. How Does Coupon Yield

A crawling peg is a type of exchange rate regime where a country’s currency is tied to another currency or a basket of currencies, but with a slight periodic adjustment to account for inflation differentials or other economic factors. This mechanism allows the exchange rate to adjust gradually over time, aiming to maintain stability in

In finance, credit refers to the ability of an individual or entity to borrow money with the promise of repayment under agreed terms. It is a crucial aspect of financial systems worldwide, enabling transactions, investments, and economic growth. Importance of Credit Credit plays a pivotal role in financial markets and personal finance management. It allows

In the financial world, credit brokerage plays a crucial role in facilitating transactions between borrowers and lenders. This article explores what credit brokerage entails, its functions, and how it operates within financial markets. What is Credit Brokerage? Definition Credit brokerage refers to the intermediary service provided by financial institutions or individuals that connects borrowers seeking