A <u>Collateralized debt obligation</u> pays out cash flows from a collection of assets in different tranches, with the highest.
A collateralized debt obligation (CDO) is a complex structured finance product that is subsidized through a pool of loans and different property and offered to institutional buyers. A CDO is a specific form of spinoff due to the fact, as its call implies, its value is derived from some other underlying asset.
For example, if the bank of the US loaned you $10,000 at 10% interest for 5 years, your mortgage can be bought by a person else. The patron of the loan will become entitled to the payments you're making on the loan. With numerous of that money owed in the CDO's portfolio, it is able to then use them as assets to underpin their debt issuance.
A Collateralized Debt obligation (CDO) is a synthetic investment product that represents special loans bundled together and sold with the aid of the lender in the market. The holder of the collateralized debt responsibility can, in principle, acquire the borrowed quantity from the authentic borrower at the end of the mortgage length.
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Answer:
The Bullwhip Effect
Explanation:
Bullwhip effect is a phenomenon that occurs in an organisation's channel of distribution due to swings or erratic demands for products by customers. This erratic nature of demands will usually lead to forecasting inefficiencies especially in meeting the demands through the supply chain.
A sudden increase in demand could lead to production planning problems because there might not be enough inventory of materials on ground to meet the demand. Also, a sudden decrease in demand can bring the challenge of excess inventory of materials which may not be needed for production for a while.
One of the measures taken to manage this erratic nature of demands is to ensure that whatever the forecasts for demands is, safety stock must be included to the forecast level of demand so as to ensure that production planning is adequate and the demands are met as well.
Answer:
What happens to the wealth effect of a change in the aggregate price level as a result of this allocation of assets?
- The consumers' wealth effect will rise since the slope of the aggregate demand curve increases as the prices of assets increases, i.e. the slope of the aggregate demand curve becomes steeper as customers become wealthier.
Will aggregate demand still be downward sloping? Why or why not?
- The aggregate demand curve sill still be downward sloping because as the price of a good or service increases, the quantity demanded will still decrease. An inverse relationship exists between price changes and quantity demanded.
Answer:
As we become more experienced, more senior, and lead bigger teams, the focus of leader development becomes more about enhancing the performance and building of characters. Moreover, leaders must remain competent, and team performance is the primary success of any leader. A leader must be a solution finder at any stage to leads the team towards success.
Explanation:
Answer:
A. $1,300 "for AGI.
Explanation:
The computation of the deductible amount is shown below:
= Air fare to repair investment rental property + 50% × (Meals + tickets to a football game with hospital administrators)
= $1,000 + 50% × ($500 + $100)
= $1,000 + $300
= $1,300
For meals and tickets, 50% deduction is applicable whereas for the air fair full deduction is applicable
And, for investment in seminar no deduction is allowed
