Credit Sweep – What Are Credit Sweeps in Corporate Finance? A credit sweep in corporate finance is an arrangement with a bank to utilize idle funds to automatically pay down a line of credit or loan. Credit sweeps are typically contracts between a bank and a client, usually a corporation. […]
Banking
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What Is an Interest Floor Rate? An interest floor rate for interest-bearing securities is an agreement between the issuer and the investor that the floating rate of return will not fall below a specified floor level over an agreed period of time. For an adjustable-rate mortgage, it is the minimum […]
What Is a Compensating Balance? A compensating balance is a form of collateral to be maintained with a lender that enables the borrower to secure a line of credit or installment loan. It is a minimum balance that effectively acts as collateral and thus compensates the lender for the risk […]
What Is the Posted Date? For credit and debit cards, the posted date is the specific day, month, and year on which a card issuer posts a transaction and adds it to the account balance of the cardholder. For a bank, it is the day on which money is taken […]
COV Loan – What are Covenant-Lite Loans? A COV loan or COV-Lite Loan is a covenant-light type of term loan. It is structured more like a bond with maximum flexibility and minimal constraints for the borrower. A covenant-lite loan is a type of flexible financing. It is a term loan […]
What Does Y2K Mean? Y2K is an acronym for the year 2000. In the late 1990s, there was serious concern that potential computer errors would occur related to the computer formatting of calendar dates. The fear of Y2K was in response to a prevalent computer programming shortcut. Many computer programs […]