--%>

Trustworthy collateral from the lenders perspective

What is trustworthy collateral from the lender's perspective?  Explain whether accounts receivable and inventory are trustworthy collateral.

E

Expert

Verified

Assets that are readily marketable, of stable rate and not likely to disappear make for trustworthy collateral.  Accounts receivable and inventory could meet this test depending upon their particular characteristics.

   Related Questions in Financial Management

  • Q : What are the typical types of Efficient

    What are the typical types of Efficient Markets Hypothesis? Explain.

  • Q : Determine standard deviation and

    You have one hat containing normally distributed random numbers, with a mean of zero and a standard deviation of σ which is unknown. You draw N numbers φi from this hat. What is the ‘probability’ of drawing all of the numbers &ph

  • Q : Example to lay off the swap to an

    Suppose you are the swap bank in the Eli Lilly swap. Create an example of how you might lay off the swap to an opposing counterparty.The swap bank may attempt to lay off the swap on Japanese MNC which has issued yen denominated debt to finance

  • Q : Foremost causes for Japan current

    On the contrary to the U.S., Japan has felt continuous current account surpluses. What could be the foremost causes for these surpluses? Is it desirable to have continuous current account surpluses? Japan's continu

  • Q : Explain the denotation a utility

    Explain the denotation a utility function and how it can vary between investors?

  • Q : Which numerical method should use for

    You need to price a European, non-path-dependent contract upon a basket of equities. Which numerical method should you use?

  • Q : Describe a full definition of arbitrage

    Describe a full definition of arbitrage. Arbitrage can be described as the act of simultaneously buying & selling the similar or equivalent assets or commodities for the reason of making certain, guaranteed pro

  • Q : Explain the term CGARCH as of the

    Explain the term CGARCH as of the GARCH’s family.

  • Q : Investment opportunity schedule Explain

    Explain in brief: IOS (investment opportunity schedule). How can IOS (investment opportunity schedule) help financial managers in making business decisions?

  • Q : What is deterministic spot rate function

    What is deterministic spot rate function?