Back-to-Back Commitment – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is a Back-to-Back Commitment?How Does a Back-to-Back Commitment Work?Benefits of a Back-to-Back Commitment What is a Back-to-Back Commitment?A back-to-back commitment is an allegiance or dedication made by a bank or financial institution...

Back-to-Back Loan – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is a Back-to-Back Loan?How Does a Back-to-Back Loan Work?Back-to-Back Loan ExampleBack-to-Back Loan Risks What is a Back-to-Back Loan?A back-to-back loan is a loan agreement between two companies domiciled in different countries in which...

Accordion Feature – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is an Accordion Feature?What is an Accordion Feature?Advantages of an Accordion Feature What is an Accordion Feature?An accordion feature is a type of corporate option or a clause in a loan (or a syndicated facility) agreement that allows...

Bail In (Finance) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is a Bail-In?How Does a Bail-In Work?Examples of Bail Ins What is a Bail-In?A bail-in is a relief or rescue strategy offered to a financial institution that is on the verge of collapse. This relief entails that creditors, depositors or...

Buydown (Mortgage) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is a Buydown of a Mortgage?How Does a Buydown Work?Buydown Structuring3-2-1 Buydown2-1 Buydown What is a Buydown of a Mortgage?A buydown refers to a technique used for mortgage financing in which the buyer tries to receive a lesser...

Obligation Bond – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is an Obligation Bond?How Obligation Bonds are Used?Making Investment in Municipal BondsAcademic Research on Obligation Bonds What is an Obligation Bond?An obligation bond refers to a form of municipal bond that secures a mortgage on...