capital representing stockholders' equitycapital in the form of stockholders' equity which is repaid only after the secured loans forming the senior capital have been paid if the firm goes into liquidation
capital structure, and capital-intensity of the business. Understanding each of the components of credit quality provides a clear picture of the determinants of a company’s cost of debt financing. Borrowing costs also include the expenses incurred to issue debt securities.
This is a simple illustration of the effect of the Basel III changes to the definition of capital on shariah banks’ and conventional banks’ cost of capital. Under Basel III the majority of junior subordinated bonds (so called Tier 1 and Upper Tier 2 bonds) will cease to qualify as bank capital By Brandon Davies
In broad terms, securitization can be viewed as pooling receivables and selling claims to these receivables in capital markets. For example, a mortgage lender may pool together thousands of mortgages and sell claims on mortgage receivables to investors. Historically, the first securitizations By Tarun Sabarwal