Recent global financial trends have been analyzed from the perspective of the chairman of the US Federal Reserve. According to their statements, the consecutive and significant interest rate increases at the end of April and beginning of May (which I have not seen in my nearly 30 years in the financial industry) have caused two…
Photo by Stephen Dawson on Unsplash As financial managers of small and medium enterprises, we must consider different financial tools to meet the company’s growth and expansion needs. This article will analyze and compare several various financial instruments, including commercial paper, loans (including syndicated loans, project loans, and other commercial loans), corporate bonds, leasing companies,…
Global Financial Observer Dr. Robert Peng Dear friends, I have received many inquiries recently about CoCo bonds, also known as contingent convertible bonds, issued by Credit Suisse. One of the concerns many people have is whether investing in such instruments means buying an asset without any protection, as the Swiss government can cancel them at…
Photo by krakenimages on Unsplash What is AFGI? AFGI, which stands for Association of Financial Guaranty Insurers, is an association of financial guaranty insurers in the United States. It was founded in 1971 by companies such as Ambac and MBIA, starting with the guarantee of local government bonds in the United States, and has since…
Photo by Jamie Street on Unsplash Regarding the 2008 financial crisis, most people only saw on the surface that the Wall Street elites in the United States caused the collapse of century-old institutions such as Lehman Brothers, Fannie Mae, Freddie Mac, Bear Stearns, Ambac, MBIA, and others due to improper manipulation of derivative financial products.…
Dr. Robert Peng, a global financial observer, pointed out that the recent default of Credit Suisse in Switzerland was a result of hostile acquisition by its own mother country, which unilaterally and actively canceled the outstanding Additional Tier 1 (AT1) capital bonds issued by Credit Suisse in the past (with a total value of approximately…
Photo by Towfiqu barbhuiya on Unsplash Source: https://www.reinsurancene.ws/leonid-rousniak-joins-newre-as-senior-structurer/ NewRe, the reinsurance arm of Swiss insurance company Munich Re, has announced that Leonid Rousniak has joined the company as Senior Structurer. Rousniak will be responsible for supporting NewRe’s structured reinsurance business and will report to the Head of Structured Reinsurance. With extensive experience in reinsurance and…
Photo by Adeolu Eletu on Unsplash As a publicly traded company, including over-the-counter and listed companies, issuing corporate bonds is an essential means of raising funds and a financial tool for financial executives. When issuing corporate bonds, the CFO must carefully consider qualifications restrictions, differences between secured and unsecured corporate bonds, and the potential buyers…
Photo by Giammarco Boscaro on Unsplash United Kingdom The origins of the guarantee insurance system can be traced back to the mid-18th century when there were numerous disputes in courts in England, which caused the public to lose confidence in personal guarantees. In 1840, Professor De Morgan from the University of London proposed the theoretical…
Photo by Austin Distel on Unsplash When a company decides to issue corporate bonds, selecting the right financial advisory firm can have a significant impact on the success of the issuance and the trust of investors. An excellent financial advisory firm should have extensive experience, professional knowledge and skills, extensive networks, and a good reputation.…
Photo by Clay Banks on Unsplash Corporate bonds are a type of debt security issued by companies to raise capital for business operations, expansion, or other funding needs. When investors buy corporate bonds, they are essentially lending money to the company and receiving a fixed interest payment in return. The company must pay bondholders both…
Photo by Austin Distel on Unsplash SPV (Special Purpose Vehicle) is an independent entity that invests in asset portfolios. The asset classes typically invested in CDOs (Collateralized Debt Obligations) include corporate debt (such as loans or bonds) but are not limited to this. To raise funds for investing in the asset portfolio, the SPV borrows…
