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Financial Terms | |
Asset for asset swap |
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Definition of Asset for asset swapAsset for asset swapCreditors exchange the debt of one defaulting borrower for the debt of another
Related Terms:Asset swapAn interest rate swap used to alter the cash flow characteristics of an institution's assets so as to Acquisition of assetsA merger or consolidation in which an acquirer purchases the selling firm's assets. Amortizing interest rate swapswap in which the principal or national amount rises (falls) as interest rates AssetAny possession that has value in an exchange. AssetA resource, recorded through a transaction, that is expected to yield a benefit to a AssetSomething that is owned; a financial claim or a piece of property that is a store of value. AssetProbable future economic benefit that is obtained or controlled by an entity as a result of ![]() assetAnything owned by, or owed to, an individual or business which has commercial or exchange value (e.g., cash, property, etc.). AssetAll things of value owned by an individual or organization. Asset activity ratiosRatios that measure how effectively the firm is managing its assets. Asset allocation decisionThe decision regarding how an institution's funds should be distributed among the Asset-Backed SecuritiesBond or note secured by assets of company. Asset-backed securityA security that is collateralized by loans, leases, receivables, or installment contracts Asset-based financingMethods of financing in which lenders and equity investors look principally to the Asset-Based FinancingLoans granted usually by a financial institution where the asset being financed constitutes the sole security given to the lender. Asset classesCategories of assets, such as stocks, bonds, real estate and foreign securities. ![]() Asset CoverageExtent to which a company's net assets cover a particular debt obligation, class of preferred stock, or equity position. Asset-coverage testA bond indenture restriction that permits additional borrowing on if the ratio of assets to Asset/equity ratioThe ratio of total assets to stockholder equity. Asset/liability managementAlso called surplus management, the task of managing funds of a financial asset mixThe weighting of assets in an investment portfolio among different asset classes (e.g. shares, bonds, property, cash, overseas investments. Asset pricing modelA model for determining the required rate of return on an asset. Asset pricing modelA model, such as the Capital asset Pricing Model (CAPM), that determines the required Asset-specific RiskThe amount of total risk that can be eliminated by diversification by Asset substitutionA firm's investing in assets that are riskier than those that the debtholders expected. Asset substitution problemArises when the stockholders substitute riskier assets for the firm's existing Asset turnoverThe ratio of net sales to total assets. ![]() asset turnovera ratio measuring asset productivity and showing the number of sales dollars generated by each dollar of assets asset turnover ratioA broad-gauge ratio computed by dividing annual AssetsA firm's productive resources. ASSETSAnything of value that a company owns. AssetsThings that the business owns. AssetsItems owned by the company or expenses that have been paid for but have not been used up. Assets requirementsA common element of a financial plan that describes projected capital spending and the Call swaptionA swaption in which the buyer has the right to enter into a swap as a fixed-rate payer. The capital assetan asset used to generate revenues or cost savings Capital assetA fixed asset, something that is expected to have long-term usage within Capital asset pricing model (CAPM)An economic theory that describes the relationship between risk and Capital Asset Pricing Model (CAPM)A model for estimating equilibrium rates of return and values of capital asset pricing model (CAPM)Theory of the relationship between risk and return which states that the expected risk Capitalized Cost An expenditure or accrual that is reported as an asset to be amortized againstfuture-period revenue. Circus swapA fixed rate currency swap against floating U.S. dollar LIBOR payments. Contra-asset accountAn offset to an asset account that reduces the balance of the asset account. Currency swapAn agreement to swap a series of specified payment obligations denominated in one currency Current assetTypically the cash, accounts receivable, and inventory accounts on the Current assetsValue of cash, accounts receivable, inventories, marketable securities and other assets that Current assetsCash, things that will be converted into cash within a year (such as accounts receivable), and inventory. Current assetsAmounts receivable by the business within a period of 12 months, including bank, debtors, inventory and prepayments. current assetsCurrent refers to cash and those assets that will be turned Current AssetsCash and other company assets that can be readily turned into cash within one year. Debt swapA set of transactions (also called a debt-equity swap) in which a firm buys a country's dollar bank Deferred Tax AssetFuture tax benefit that results from (1) the origination of a temporary difference Differential swapswap between two LIBO rates of interest, e.g. yen LIBOR for dollar LIBOR. Payments are Dynamic asset allocationAn asset allocation strategy in which the asset mix is mechanistically shifted in Equity swapA swap in which the cash flows that are exchanged are based on the total return on some stock Exchange of assetsAcquisition of another company by purchase of its assets in exchange for cash or stock. Extension swapExtending maturity through a swap, e.g. selling a 2-year note and buying one with a slightly Financial assetsClaims on real assets. financial assetsClaims to the income generated by real assets. Also called securities. Fixed assetLong-lived property owned by a firm that is used by a firm in the production of its income. Fixed assetAn item with a longevity greater than one year, and which exceeds a company’s Fixed asset turnover ratioThe ratio of sales to fixed assets. Fixed assetsThings that the business owns and are part of the business infrastructure – fixed assets may be fixed assetsAn informal term that refers to the variety of long-term operating Fixed AssetsLand, buildings, plant, equipment, and other assets acquired for carrying on the business of a company with a life exceeding one year. Normally expressed in financial accounts at cost, less accumulated depreciation. Fixed Assets Turnover RatioA measure of the utilization of a company's fixed assets to Foreign exchange swapAn agreement to exchange stipulated amounts of one currency for another currency Intangible assetA legal claim to some future benefit, typically a claim to future cash. Goodwill, intellectual Intangible assetA nonphysical asset with a life greater than one year. Examples are Intangible assetsassets owned by the company that do not possess physical substance; they usually take the form of rights and privileges such as patents, copyrights, and franchises. Intangible fixed assetsNon-physical assets, e.g. customer goodwill or intellectual property (patents and trademarks). Interest rate swapA binding agreement between counterparties to exchange periodic interest payments on Intermarket spread swapsAn exchange of one bond for another based on the manager's projection of a Liability swapAn interest rate swap used to alter the cash flow characteristics of an institution's liabilities so Limitation on asset dispositionsA bond covenant that restricts in some way a firm's ability to sell major assets. Liquid assetasset that is easily and cheaply turned into cash - notably cash itself and short-term securities. Long-term assetsValue of property, equipment and other capital assets minus the depreciation. This is an Longer-Term Fixed Assetsassets having a useful life greater than one year but the duration of the 'long term' will vary with the context in which the term is applied. net asset valueThe value of all the holdings of a mutual fund, less the fund's liabilities. Net asset value (NAV)The value of a fund's investments. For a mutual fund, the net asset value per share Net assetsThe difference between total assets on the one hand and current liabilities and noncapitalized longterm Non-reproducible assetsA tangible asset with unique physical properties, like a parcel of land, a mine, or a Other assetsA cluster of accounts that are listed after fixed assets on the balance sheet, Other current assetsValue of non-cash assets, including prepaid expenses and accounts receivable, due Personal Assetsassets, the title of which are held personally rather than in the name of some other legal entity. Policy asset allocationA long-term asset allocation method, in which the investor seeks to assess an Preferred Stock Stock that has a claim on assets and dividends of a corporation that are priorto that of common stock. Preferred stock typically does not carry the right to vote. Publicly traded assetsassets that can be traded in a public market, such as the stock market. Pure yield pickup swapMoving to higher yield bonds. Put swaptionA financial tool in which the buyer has the right, or option, to enter into a swap as a floatingrate Quanto swapSee: differential swap. Quick assetAny asset that can be converted into cash on short notice. This is a subset Quick assetsCurrent assets minus inventories. Rate anticipation swapsAn exchange of bonds in a portfolio for new bonds that will achieve the target RATE OF RETURN ON TOTAL ASSETSThe percentage return or profit that management made on each dollar of assets. The formula is: Real assetsIdentifiable assets, such as buildings, equipment, patents, and trademarks, as distinguished from a real assetsassets used to produce goods and services. Realizable Revenue A revenue transaction where assets received in exchange for goods andservices are readily convertible into known amounts of cash or claims to cash. Reproducible assetsA tangible asset with physical properties that can be reproduced, such as a building or Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |