Banking & Finance

What is the ticket size of retail equipment leasing?

Micro-ticket equipment is a classification used by the ELFA of equipment costing up to $25,000, involving the leasing of such high-volume relatively low-price assets as office equi...


What is the syndication process?

As soon as a bank is awarded the lead arranger mandate, it prepares for the syndication of the financing.  The syndication process usually involves the following steps: Agreement a...


What is the syndicate fee structure?

Borrowers pay various fees to participant lenders according to the syndicate fee structure, including upfront fee, commitment fee, facility fee and letter of credit fee, depending...


What is the statement of changes in equity?

The statement of changes in equity is a financial statement that reports all changes to a company’s owners’ equity over an accounting period, including total comprehensive income,...


What is the statement of cash flows?

The statement of cash flows is a financial statement that reports the flow of cash into and out of a company in a given year resulting from the entity’s operating, financing and in...


What is the residual value of a lease? What is the salvage value of a lease?

The commercial value of a leased asset under a finance lease at lease termination as set at lease inception equal to the estimated net proceeds from the asset’s sale, its remarketi...


What is the reciprocity effect in loan syndication?

Lead arrangers commonly choose participants with similar lending specialization and borrower monitoring capability.  While the participant lenders “free-ride” on the due diligence...


What is the present value of a lease?

US GAAP and IFRS accounting for leases and lease pricing are based on the fair value of the leased assets and the expected cash flows.  The current value of one or a series of disc...


What is the moral hazard in loan syndication?

Mandated lead arrangers are commonly the borrower’s main relationship lender.  Such relationship lending has a significant impact on loan terms and moral hazard towards syndicate p...


What is the moral hazard in loan syndication?

Mandated lead arrangers are commonly the borrower’s main relationship lender.  Such relationship lending has a significant impact on loan terms and moral hazard towards syndicate p...


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