World Of Finance

          World Of Finance by Vijaya Sai.M Credit enhancement is a key part of the securitisation transaction in structured finance, and is important for credit rating agencies when rating a securitisation. The credit crisis of 2007-2008 has discredited the process of credit enhancement of structured securities as a financial practice as the risk was not assessed correctly and defaults began to rise. If the credit rating was properly assessed and higher interest rates assigned to structured securities, then the crisis may have been averted. Types of Credit Enhancement   There are two primary types of Credit Enhancement: 1.Internal 2.External. Internal Credit Enhancement Excess spread The excess spread is the difference between the interest rate received on the underlying collateral and the coupon on the issued security. It is typically one of the first defenses against loss. Even if some of the underlying loan payments are late or default, the coupon payment can s

        World of Finance by M.Vijaya Sai In this Article we are introducing you a new concept Called “Debt Doctors”. Debt Doctors are very common in foreign countries like UK & US. But it is not common in India we expect this will be a reality in India very soon. Debt Doctors help individuals to solve their debt related problems such as home loans, car loans , bankruptcy, etc. In India every year thousands of people are committing suicides because of debt related issues. Proper planning and expert advice from a qualified person or institute will help to save these lives. What is Debt? Debt is the money borrowed from an outside source with a promise to repay the principal (borrowed amount) with an agreed rate of interest. There are times during that people will get into huge debt. In though time people can get into debt from personal or secured loans, mortgages etc. Many people are unable to repay monthly payments on credit cards and other types of loans. All th

        World of Finance by M.Vijaya Sai Reserve Bank of India (RBI) is the central bank of the country. It was established in April 1935 with a share capital of Rs. 5 crores on the basis of the recommendations of the Hilton Young Commission. The share capital was divided into shares of Rs. 100 each fully paid which was entirely owned by private shareholders in the beginning. The Government held shares of nominal value of Rs. 2, 20,000. RBI was nationalized in the year 1949. The general superintendence and direction of the Bank is entrusted to Central Board of Directors comprising of 20 members, the Governor and four Deputy Governors, one Government official from the Ministry of Finance , ten nominated Directors by the Government to give representation to important factors in the economic life of the country, and four nominated Directors by the Central Government to represent the four local Boards with the headquarters at Mumbai, Kolkata, Chennai and

        World of Finance by M.Vijaya Sai Building a house is a very important event in any person's life. The decision to build a house comes after a long analysis of the sources of funds to facilitate the process. The most accepted method of financing a home purchase is with a housing loan. This is a loan that is protected against the home. There are a number of different housing loan suppliers and you will have to shop around in order to get the best one.   Housing loan rates can vary from bank to bank and a small change in rate can make a huge difference to the amount your repayments will amount to. Even a small difference in rates could save you thousands of rupees or allow you to have your loan paid off years faster. There are a number of home loan providers in India to choose from. People sometimes have difficulty in distinguishing between the different home loans that are available. It is a difficult thing to decide which home loan is right