Commercial Lending Review articles from September 2006

Commercial Lending Review archives from September 2006

Deconstructing DACA: an analysis of the model deposit account control agreement: creditors that choose to accept DACA may take steps to reduce their exposure under the model control agreement.
September 1, 2006... The law and practice concerning the perfection of security interests in commercial deposit accounts has undergone a number of material changes over the past several years and will continue to do so with the introduction of the model Deposit...

Rethinking the commercial loan process: what's wrong with the structure of most commercial loan operations?
September 1, 2006... It has been said, "Commercial lending is the least automated aspect of banking." Many reasons have been given for this, ranging from how complex commercial deals are to the number of exceptions that seem to permeate them. This article looks at...

Loan-only credit default swaps: the march to liquidity: settlement and pricing, standard-form documentation and information asymmetries must be addressed for the use of loan-only credit default swaps to increase.
September 1, 2006... Since their inception over a decade ago, derivative instruments have played an integral part in the emergence of innovative methods of credit risk transference, hedging and investment strategies for a wide range of market participants....

Profitability information to manage commercial relationships: pricing, incentive compensation and marketing can be improved with more refined relationship profitability information.
September 1, 2006... The topic of commercial profitability connotes different things to different audiences. Even within the banking community, there are a wide variety of definitions. This article will provide an overview of the topic, its evolution, its...

Understanding the basics of financial statement analysis: terms vary, but financial statement analysis attempts to answer four broad questions.
September 1, 2006... Financial statements are prepared to help investors and creditors understand the financial history of a company and use that knowledge to predict the amount, timing and uncertainty of both future cash flows (interest, principal payments and...

Credit agreement pricing grids: dealing with borrower computation errors: lenders may want to change the standard language in credit agreements in response to the Adelphia case.(LOAN PRICING)
September 1, 2006... There are few provisions in a credit agreement more fundamental to borrowers and lenders alike than those specifying the interest rate on the loans. A recent bankruptcy court decision sounds an alert to lenders to revisit the actual text of...

Industrialist and idealist: Milton S. Hershey, the chocolate king: business acumen and idealistic values defined the life of Milton Hershey.(Biography)
September 1, 2006... The character of American business leaders--both in popular imagination and in historical context--has been shaped, in large part, by conflicting interpretations concerning the personalities and ethics and accomplishments of only a handful of...