A risk premium is the minimum difference a person requires to be willing to take an uncertain bet, between the expected value of the bet and the certain value that he is indifferent to.The equity risk premium is commonly viwed as the extra retun needed to induce investors to risk their money in the stock market rather than opting for the safe haven of government bonds.It is a … [Read more...]
What is a Bow Tie Loan?
Bow tie loans are basically are short-term variable rate loan that defers any unpaid interest charges above a pre-determined interest rate. A bow-tie loan rolls any interest due into the loan principal in a long-term loan from a bank lender or investor.In short, it is a variable-rate loan in which unpaid interest charges above a predetermined interest rate are deferred. A … [Read more...]
FAFSA 2009: Student Financial Aid Changes
If you filled out an online FAFSA before 2009, you probably noticed the process took about an hour. You were inundated with questions that didn't apply to you. This is because the online application didn't interact with your responses to the questions - at all. The old FAFSA was basically the full paper form online. You had to scroll through the full application to find the … [Read more...]
Senior Stretch Loan
Senior Stretch Loan, or overadvance loan, is a hybrid debt instrument consisting of both asset-based loan and cash flow loan. It is a loan to a business enterprise that has elements of both asset-based and cash-flow lending. In a typical stretch loan the lender offers funding beyond the lendable value of current and fixed assets if the company demonstrates it can generate … [Read more...]
Why FHA Loans Are A Popular Choice ?
Sometimes, when you look to purchase a new home or you need to improve the condition of your already existing home. Let me inform you that whether this home is new or used, whether it is a house, condo, manufactured, or mobile home, FHA loans are easy to obtain and are very affordable and accommodating to your needs. There are several reasons why you would opt for an FHA loan. … [Read more...]