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8/3/2019 types of fs 2
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Similar to consortium financing
The process of involving several differentlenders in providing various portions of a
loan.
5/4/20121
Loan syndication
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mainly used in extremely large loan situations.
syndication allows any one lender to provide a large loan
while maintaining a more prudent and manageable credit
exposure .
Under loan syndication , several banks (or financial
institutions) finance a single borrower with common
appraisal, common documentation, joint supervision and
follow-up exercises, these banks have a common agreement
between them, the process is some what similar to loansyndication.
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Loan arranged by a banker
Called lead manager
Borrower large customer or government.
Other banks who are willing to lend will join They form a syndicate
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Custodial services
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A brokerage or other financial institution that holds
and manages a client's securities or other assets on
his/her behalf.
This reduces the riskof the client losing his/her assets
or having them stolen.
They are also available to the brokerage to sell at the
client's demand.
Like a bank, a custodian provides an investor a placeto store assets with little risk.
Brokerages normally require a fee for custodial
services. See also: Safekeeping.
http://financial-dictionary.thefreedictionary.com/Brokeragehttp://financial-dictionary.thefreedictionary.com/Financial+Institutionhttp://financial-dictionary.thefreedictionary.com/Securitieshttp://financial-dictionary.thefreedictionary.com/Assetshttp://financial-dictionary.thefreedictionary.com/Riskhttp://financial-dictionary.thefreedictionary.com/Sellhttp://financial-dictionary.thefreedictionary.com/Bankhttp://financial-dictionary.thefreedictionary.com/Investorhttp://financial-dictionary.thefreedictionary.com/Riskhttp://financial-dictionary.thefreedictionary.com/Feehttp://financial-dictionary.thefreedictionary.com/Safekeepinghttp://financial-dictionary.thefreedictionary.com/Safekeepinghttp://financial-dictionary.thefreedictionary.com/Feehttp://financial-dictionary.thefreedictionary.com/Riskhttp://financial-dictionary.thefreedictionary.com/Investorhttp://financial-dictionary.thefreedictionary.com/Bankhttp://financial-dictionary.thefreedictionary.com/Sellhttp://financial-dictionary.thefreedictionary.com/Riskhttp://financial-dictionary.thefreedictionary.com/Assetshttp://financial-dictionary.thefreedictionary.com/Securitieshttp://financial-dictionary.thefreedictionary.com/Financial+Institutionhttp://financial-dictionary.thefreedictionary.com/Brokerage8/3/2019 types of fs 2
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Corporate advisory services
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A range of consultancy services provided by CertifiedPublic Accountants (CPA) and other financial advisors
to businesses and high net worth individuals who
require specialized advice on capital formation, cash
flow and wealthmanagement. Advisoryclientspayfeesbased on services provided or as a percent ofassets
under management.
http://www.businessdictionary.com/definition/certified-public-accountant-CPA.htmlhttp://www.businessdictionary.com/definition/certified-public-accountant-CPA.htmlhttp://www.businessdictionary.com/definition/financial.htmlhttp://www.businessdictionary.com/definition/high-net-worth-individual-HNWI.htmlhttp://www.businessdictionary.com/definition/advice.htmlhttp://www.businessdictionary.com/definition/capital-formation.htmlhttp://www.businessdictionary.com/definition/cash-flow.htmlhttp://www.businessdictionary.com/definition/cash-flow.htmlhttp://www.businessdictionary.com/definition/wealth.htmlhttp://www.businessdictionary.com/definition/management.htmlhttp://www.businessdictionary.com/definition/advisory.htmlhttp://www.businessdictionary.com/definition/client.htmlhttp://www.businessdictionary.com/definition/pay.htmlhttp://www.businessdictionary.com/definition/fee.htmlhttp://www.businessdictionary.com/definition/percent.htmlhttp://www.businessdictionary.com/definition/assets-under-management.htmlhttp://www.businessdictionary.com/definition/assets-under-management.htmlhttp://www.businessdictionary.com/definition/assets-under-management.htmlhttp://www.businessdictionary.com/definition/assets-under-management.htmlhttp://www.businessdictionary.com/definition/percent.htmlhttp://www.businessdictionary.com/definition/fee.htmlhttp://www.businessdictionary.com/definition/pay.htmlhttp://www.businessdictionary.com/definition/client.htmlhttp://www.businessdictionary.com/definition/advisory.htmlhttp://www.businessdictionary.com/definition/management.htmlhttp://www.businessdictionary.com/definition/wealth.htmlhttp://www.businessdictionary.com/definition/cash-flow.htmlhttp://www.businessdictionary.com/definition/cash-flow.htmlhttp://www.businessdictionary.com/definition/capital-formation.htmlhttp://www.businessdictionary.com/definition/advice.htmlhttp://www.businessdictionary.com/definition/high-net-worth-individual-HNWI.htmlhttp://www.businessdictionary.com/definition/financial.htmlhttp://www.businessdictionary.com/definition/certified-public-accountant-CPA.htmlhttp://www.businessdictionary.com/definition/certified-public-accountant-CPA.html8/3/2019 types of fs 2
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Corporate advisory firms play a crucial role in businessoperations.
The literal meaning of corporate advisory services in
India is the activity of advising organizations, which
include corporations, institutions and Government
bodies about the transactions that can change the
ownership of a company or business such as mergers
and acquisitions.
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securitization
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Securitization broadly implies every such process,which converts a financial relation into a transaction.
Converts a ill liquid, non negotiable and high value
financial assets into securities of small value which are
tradable and transferable.
History of evolution of finance, and corporate law
indicate where relations are converted into
transactions.
This earliest instance of securitisation was
instrumental in the growth of the corporate form of
business and separation of ownership and
management of organizations is one of the greatestcommercial inventions o this 19th centur .
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Securitization is defined as the process whereby loans,receivables and other financial assets are pooled together,
with their cash flows or economic values redirected to
support payments on related securities.
These securities, some of which are referred to as asset-backed securities are issued and sold to investors
principally, institutions in the public and private markets by
or on behalf of issuers. The issuers use securitization to
finance their business activities. The financial assets thatsupport payments on asset-backed securities include
residential and commercial mortgage loans, as well as a
wide variety of non mortgage assets such as trade
receivables, credit card balances, consumer loans, lease
receivables, automobile loans, and other consumer and
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Reverse mortgage
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Definition: A special type of home equity loan forpersons 62 and older. Reverse mortgages allow owners
to convert some of the equity in their homes to cash.
The loan does not usually have to be repaid during the
homeowner's lifetime. Loan advances are not taxableand do not affect the homeowner's Social Security or
Medicare benefits.
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Meaning cont
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A type of mortgage in which a homeowner can borrow moneyagainst the value of his or her home.
No repayment of the mortgage (principal or interest) isrequired until the borrower dies or the home is sold.
After accounting for the initial mortgage amount, the rate at
which interest accrues, the length of the loan and rate of homeprice appreciation, the transaction is structured so that the loanamount will not exceed the value of the home over the life of theloan.Often, the lender will require that there can be no other liens
against the home. Any existing liens must be paid off with the proceeds of the
reverse mortgage.
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