Debt

In bankruptcy situations, determining the type of a debt can be a source of contention. The following definitions apply in general: Anything that isn’t considered consumer debt is classified as business debt. Non-consumer debt is a term used to describe this type of debt. A consumer debt is a loan taken out by a person […]

The company’s total debt is used to determine net debt in part. Long-term liabilities, such as mortgages and other long-term loans, are included in total debt, as are short-term commitments, such as loan payments, credit card balances, and accounts payable amounts. What is not included in total debt? The total-debt-to-total-assets ratio examines a company’s balance

An investor that makes a debt investment lends money to a company or project sponsor with the assumption that the borrower will repay the loan with interest. What is an example of a debt investment? Bonds are one of the most well-known and well-known types of debt investments. Bonds are a type of financing that

Standard & Poor’s assigns a credit rating of BBB- or higher to debt (such as a bond or a loan). Moody’s assigns a credit rating of Baa3 or higher to debt (such as a bond or a loan). Fitch assigns a rating of BBB- or better. What are investment grade bonds examples? Different agencies classify

“Aren’t all mutual funds the same?” you might wonder. After all, isn’t it a Mutual Fund?” Gokul enquired. Harish, a Mutual Fund distributor, smiled at him. Many people had made such a statement before, and he was all too familiar with it. A lot of individuals believe that all mutual funds are the same. There

The European debt crisis is a long-running financial crisis that has made it difficult or impossible for several euro-area nations to repay or refinance their government debt without the help of third parties. The European sovereign debt crisis arose from the eurozone’s structural problem and a complex set of factors, including globalisation of finance; easy

A floating rate fund invests in financial securities that pay a variable or floating rate of interest. A floating rate fund, which can be a mutual fund or an exchange-traded fund (ETF), invests in bonds and financial instruments whose interest payments fluctuate with the level of the underlying interest rate. A fixed-rate investment will typically

A government, corporation, or private household can borrow money from the government or private lenders of another country. Foreign debt also includes liabilities to international institutions like the World Bank, Asian Development Bank (ADB), and International Monetary Fund (IMF) (IMF). Total foreign debt can be made up of both short- and long-term obligations. In recent

Good debt has the ability to significantly boost your net worth or improve your life. Borrowing money to buy quickly depreciating assets or for the sole purpose of consuming is considered bad debt. Determining whether a debt is good or bad is sometimes based on a person’s financial status, such as how much money they

What Is The DSCR (Debt Service Coverage Ratio)? The debt-service coverage ratio determines how much of your income is consumed by specific obligations. For example, mortgage lenders want to know how much of your salary would go toward paying off your mortgage. Lenders consider a variety of charges to constitute housing costs. What is a