Posted by admin on Jan 22, 2011 in
Finance Organizations, both profit and non-profit. often need finance for many reasons; expansion, growth, consolidation, payment of dividends and many more reasons. At times, these funds may not be sitting idle in some bank vault on their behalf, but have to be borrowed. While there are sources of funds, both short and long term, firms are always on the market for cheaper sources of funds. Apart from the low interest a cheaper fund attracts, firms can also use it for a significantly long time, without feeling the pinch. For firms in the market for foreign currency for investment purposes abroad or any other reason, a currency swap is usually a good source of cheaper funds.
Currency swap, which is one of the basic financial derivatives instruments, involves private negotiations between 2 parties to swap a specified payment obligations denominated in one currency for a payment obligation denominated in another currency. For instance, swapping USD (US Dollars) for Euros.
Currency swap came about because of foreign exchange restrictions introduced by countries on the amount and cost of obtaining foreign currency. Currency swap is a very good method of bypassing these restrictions. Its main advantage is the provision of a cheaper source of funds for the companies concerned. For instance it would be easier for a US-based corporation to raise USD than for a European-based corporation; likewise, it would be easier for a European-based corporation to get hold of Euros than a US-based one. It also bypasses restrictions imposed by governments on foreign currency.
Currency swaps can be plain vanilla currency swap or interest rate swap. Plain vanilla currency swap involves the exchange of principal and interest in one currency for principal and interest in another currency. The principal sums exchanged in the two currencies are equal to each other. Read more...
Tags: Corporate, Currency, Finance, Source, Swap
Posted by admin on Aug 5, 2010 in
Finance Corporate Financing
Corporate financing is a type of financing which is acquired by corporations. Typically corporate financing is obtained to finance projects designed to grow a corporation or by new companies which need capital in order to build the company up. Many corporations attempting to acquire corporate financing will obtain the services of a business loan broker in order to expedite the entire financing process and to obtain a better interest rate.
Corporate financing is considered one of the most difficult forms of financing to obtain. In many cases lending money to businesses can be one of the most lucrative types of loans a lender can make it is also one of the riskiest. This is related to the fact that only around 1 in 10 businesses succeed. This makes it a fairly high risk loan for business lenders. Typically any business that is looking to get corporate financing will need to have a fairly strong credit rating which proves to the lenders that they have a history of paying their loans off on time and in full. It is also considered beneficial for a company looking for corporate financing to have a revenue history which shows a consistent profit margin or a profit margin which has been steadily increasing over several years.
 Corporate financing is considered one of the most difficult forms of financing to obtain. In many cases lending money to businesses can be one of the most lucrative types of loans a lender can make it is also one of the riskiest. This is related to the fact that only around 1 in 10 businesses succeed. This makes it a fairly high risk loan for business lenders. Typically any business that is looking to get corporate financing will need to have a fairly strong credit rating which proves to the lenders that they have a history of paying their loans off on time and in full. It is also considered beneficial for a company looking for corporate financing to have a revenue history which shows a consistent profit margin or a profit margin which has been steadily increasing over several years. Read more...
Tags: Corporate, Financing
Posted by admin on Apr 21, 2010 in
Finance 
Product Description
Principles of Corporate Finance is the worldwide leading text that describes the theory and practice of corporate finance. Throughout the book the authors show how managers use financial theory to solve practical problems and as a way of learning how to respond to change by showing not just how but why companies and management act as they do. The text is comprehensive, authoritative, and modern and yet the material is presented at a common sense level. The discus… More >>
Principles of Corporate Finance + Student CD + Ethics in Finance PowerWeb + Standard and Poor’s
Tags: Corporate, Ethics, Finance, Poor's, PowerWeb, Principles, Standard, Student
Posted by admin on Apr 19, 2010 in
Finance 
Product Description
A streetwise MBA that offers you a degree in success Whether you’re a novice or an experienced professional, The Wall Street MBA explains the underpinnings of financial valuation, financial analysis, and corporate accounting and describes how each drives corporate America and Wall Street. Peppered with true stories and amusing anecdotes, this concise, easy-to-read, interactive resource teaches MBA concepts by applying theory to real-life example… More >>
The Wall Street MBA: Your Personal Crash Course in Corporate Finance
Tags: Corporate, Course, Crash, Finance, Personal, Street, Wall
Posted by admin on Mar 28, 2010 in
Finance 
Product Description
Corporate Finance: Core Principles and Applications, 2nd edition, by Ross, Westerfield, Jaffe and Jordan was written to convey the most important corporate finance concepts and applications at a level that is approachable to the widest possible audience. The concise format, managerial context and design, and student-friendly writing style are key attributes to this text. RWJJ Core Principles strikes a balance by introducing and covering the essentials, wh… More >>
Corporate Finance: Core Applications and Principles w/S&P bind-in card
Tags: Applications, bindin, Card, Core, Corporate, Finance, Principles, w/S&P
