scholarly journals Short-Term Debt as Bridge Financing: Evidence from the Commercial Paper Market

2015 ◽  
Vol 70 (1) ◽  
pp. 211-255 ◽  
Author(s):  
MATTHIAS KAHL ◽  
ANIL SHIVDASANI ◽  
YIHUI WANG
Keyword(s):  
Short Term ◽  
Commercial Paper

Short-Term Funding and Financing Alternatives

2019 ◽  
pp. 167-184
Author(s):  
Benjamin Aguilar ◽  
Ajit Jain ◽  
Kevin Neaves
Keyword(s):  
Capital Markets ◽  
Working Capital ◽  
Short Term ◽  
Expected Return ◽  
Accounts Receivable ◽  
Purchase Order ◽  
Commercial Paper ◽  
Potential Risks ◽  
Repurchase Agreements ◽  
Revolving Credit

This chapter discusses the different types of short-term funding and financing alternatives that are available in the commercial money and capital markets. First, it covers commercial paper market activity, issue maturity, and quality. Second, the chapter addresses common uses and terms for commercial and standby letters of credit as well as common issuing requirements and covenants, and discusses the parties, processes, and risks involved. Third, it covers bilateral and trilateral repurchase agreements. Fourth, the chapter discusses asset-based loans, including accounts receivable factoring and purchase order financing. Finally, it covers revolving credit facilities and their associated costs. In sum, short-term funding is important for borrowers seeking additional liquidity to finance working capital or other short-term investments. For each type of short-term funding alternative, the chapter discusses the expected return and potential risks that the borrower and lender should evaluate before entering the financial transaction.

Debt Market Liquidity and Corporate Default Prediction

2014 ◽  
Vol 04 (04) ◽  
pp. 1550003
Author(s):  
Deming Wu ◽  
Suning Zhang
Keyword(s):  
Market Liquidity ◽  
Subprime Crisis ◽  
Short Term ◽  
Time Dynamic ◽  
Corporate Default ◽  
Rollover Risk ◽  
Default Prediction ◽  
Commercial Paper ◽  
Debt Market ◽  
Nonfinancial Firms

Recent research on the subprime crisis and rollover risk suggests that debt market liquidity is a major factor affecting the risk of default. This implies that firms that rely heavily on short-term debt, such as commercial paper (CP), are at greater risk of default. Debt market illiquidity could reduce the value of the firm and thus impact the firm's leverage, which is a major factor in predicting default. We estimate the effect of debt market conditions on the probability of default with a discrete-time dynamic hazard model that takes into account measurement error in firm leverage. Our results indicate that rollover risk is a significant factor in causing default, but the risk was higher for nonfinancial firms around 2000–2001 and considerably less entering the subprime crisis.

scholarly journals When Safe Proved Risky: Commercial Paper during the Financial Crisis of 2007–2009

2010 ◽  
Vol 24 (1) ◽  
pp. 29-50 ◽  
Author(s):  
Marcin Kacperczyk ◽  
Philipp Schnabl
Keyword(s):  
Financial Crisis ◽  
Adverse Selection ◽  
Federal Reserve ◽  
Supply And Demand ◽  
Institutional Constraints ◽  
Safe Haven ◽  
Short Term ◽  
Money Market Funds ◽  
Commercial Paper ◽  
Alternative Sources

Commercial paper is a short-term debt instrument issued by large corporations. The commercial paper market has long been viewed as a bastion of high liquidity and low risk. But twice during the financial crisis of 2007–2009, the commercial paper market nearly dried up and ceased being perceived as a safe haven. Major interventions by the Federal Reserve, including large outright purchases of commercial paper, were eventually used to support both issuers of and investors in commercial paper. We will offer an analysis of the commercial paper market during the financial crisis. First, we describe the institutional background of the commercial paper market. Second, we analyze the supply and demand sides of the market. Third, we examine the most important developments during the crisis of 2007–2009. Last, we discuss three explanations of the decline in the commercial paper market: substitution to alternative sources of financing by commercial paper issuers, adverse selection, and institutional constraints among money market funds.

Securitization in the Capital Markets Union

2018 ◽  
Author(s):  
Gerard Kastelein
Keyword(s):  
Capital Markets ◽  
Negotiation Process ◽  
Short Term ◽  
Market Participants ◽  
Capital Markets Union ◽  
Negative Effect ◽  
Commercial Paper ◽  
Application Date ◽  
Primary Focus

On 30 May 2017, the European Parliament, Council, and Commission reached a political agreement on the package of regulatory reforms of the European securitisation market. The package is aimed at facilitating the development of a securitisation market in Europe. The package represents the latest development of a negotiation process that started back in September 2015. The application date is expected to be 1 January 2019. Meanwhile, market participants have expressed uncertainties as to its effectiveness. This chapter considers the risk that the package will have a negative effect on the European securitisation market, resulting in further contraction. The primary focus of the chapter is on the rules on long-term securitisations as opposed to the short-term securitisations (asset-backed commercial paper).

scholarly journals الأوراق التجارية (قصيرة الأجل) أهميتها، وبيان جذرها الشرعي والمقاصدي (Commercial paper (short-term) importance and the statement of its root and legitimate Makassed)

2020 ◽  
Vol 17 (2) ◽  
pp. 90-107
Author(s):  
عبد المجيد عبيد حسن صالح ◽  
حبيب الله زكريا ◽  
أول آدم سعد
Keyword(s):  
Descriptive Analysis ◽  
Private Law ◽  
Analysis Method ◽  
Legal Origin ◽  
Short Term ◽  
Commercial Paper ◽  
The Law

يناقش البحث صيغا جديدة من الصيغ المعاصرة في التبادلات المالية (الأوراق المالية قصيرة الأجل). وبعد التعريف بها وبيان أصلها الشرعي، تناولت الدراسة البعد المقاصدي لهذه الأوراق المالية، وإذا كان قصد مشرعي القانون الخاص من هذه الأوراق السرعة، والائتمان، والتوثيق، فهذه المقاصد تتفق مع قصد الشارع من استيفاء الحقوق، وحفظ الأموال، ومبدأ التوثيق العام، كما تنطلق من روح  الاقتصاد الإسلامي، من حرية السوق والتنافس، والتيسير في المعاملات التجارية، وكسر الحواجز بين الطبقات، وسرعة تبادل المال وتنقله، وتحريم الإكتناز، والوضوح والشفافية التي تعتبر معيار لصحة العقد وبركته، فالمعاملات المتكررة لها خصوصية في التشريع الفقهي الذي يتوافق مع متطلبات السوق، وحركته في العامة. وقد استخدم الباحث المنهج الوصفي التحليلي، بمناقشة المنتج المالي وبيان مفهومه، ثم جذره المقاصدي، وتحليل نصوص الشارع في ذلك، وبيان قصد الشارع من هذه الأوراق المالية. الكلمات المفتاحيّة: الأوراق التجارية (الكمبيالة، سندات لأمر، الشيك)، العرف التجاري، الائتمان، التوثيق، التبادل. Abstract The research discusses new forms of contemporary formulas in financial exchanges (short-term securities). After the definition and stating their legal origin, the study examined the intent dimensions of these securities. If the intention of the private law legislators of these securities is to quickness, credit, and documentation, thus, these purposes are in line with the legislator's intends to fulfill the rights, preserve the funds, and the principle of public documentation. It is also in line with the spirit of the Islamic economy, of market freedom, and competition, to facilitate trade transactions, to break down barriers between classes, the speed of exchange and transfer of money, the prohibition of hoarding, clarity, and transparency that are a criterion for the validity of the contract And his blessing. The repeated transactions have specificity in the jurisprudential legislation that corresponds to the requirements of the market, and its movement in public. The researcher used the descriptive-analysis method by discussing the financial product and explaining its concept. Its intent root, and analyzing the legislator texts in that, and explaining the intent of the law-giver from these securities. Keywords: Business papers, bills to order, check, trade usage, credit, documentation, exchange.

3. Securitized banking

2016 ◽  
pp. 43-53
Author(s):  
John Goddard ◽  
John O. S. Wilson
Keyword(s):  
Financial Crisis ◽  
Business Model ◽  
Global Financial Crisis ◽  
Short Term ◽  
Commercial Paper ◽  
Set Up ◽  
The Global Financial Crisis

Preceding the global financial crisis of 2007–09, an alternative business model of banking evolved. An important element in the development of the securitized banking model was a growing tendency for banks to rely less heavily on deposits as a source of short-term finance, and more heavily on other sources such as the repo market, commercial paper, and derivatives. ‘Securitized banking’ explains that having raised short-term funding through these means, the bank can deploy the funds to support loans to borrowers such as house purchasers. Often a bank will bundle a large number of loans together and sell the package to a Structured Investment Vehicle set up by the bank to administer the loans.

Conceptual short-term memory (CSTM) supports core claims of Christiansen and Chater

2016 ◽  
Vol 39 ◽  
Author(s):  
Mary C. Potter
Keyword(s):  
Working Memory ◽  
Rapid Serial Visual Presentation ◽  
Language Comprehension ◽  
Short Term Memory ◽  
Visual Presentation ◽  
Long Term Memory ◽  
Short Term ◽  
Term Memory ◽  
Use Of Knowledge

AbstractRapid serial visual presentation (RSVP) of words or pictured scenes provides evidence for a large-capacity conceptual short-term memory (CSTM) that momentarily provides rich associated material from long-term memory, permitting rapid chunking (Potter 1993; 2009; 2012). In perception of scenes as well as language comprehension, we make use of knowledge that briefly exceeds the supposed limits of working memory.

Ultrastructural Changes of Canine Kidneys During 24-Hour Perfusion on a LI-400 Preservation System

1971 ◽  
Vol 29 ◽  
pp. 316-317
Author(s):  
M. O. Magnusson ◽  
D. G. Osborne ◽  
T. Shimoji ◽  
W. S. Kiser ◽  
W. A. Hawk
Keyword(s):  
Electron Microscopy ◽  
Electrolyte Solution ◽  
Ultrastructural Changes ◽  
Midline Incision ◽  
Short Term ◽  
Pentobarbital Anesthesia ◽  
Pulsatile Perfusion

Short term experimental and clinical preservation of kidneys is presently best accomplished by hypothermic continuous pulsatile perfusion with cryoprecipitated and millipore filtered plasma. This study was undertaken to observe ultrastructural changes occurring during 24-hour preservation using the above mentioned method.A kidney was removed through a midline incision from healthy mongrel dogs under pentobarbital anesthesia. The kidneys were flushed immediately after removal with chilled electrolyte solution and placed on a LI-400 preservation system and perfused at 8-10°C. Serial kidney biopsies were obtained at 0-½-1-2-4-8-16 and 24 hours of preservation. All biopsies were prepared for electron microscopy. At the end of the preservation period the kidneys were autografted.

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