Investors are sometimes asked to provide financing for is “Build, Lease, Transfer” arrangements – “BLT” for short. In this type of arrangement, a developer designs and builds the complete facility. Sometimes these facilities are large scale industrial projects such as power plants, airport, ports, etc – and sometimes they are smaller facilities. Upon completion, according … More The BLT – Not Just Your Lunch Order!
In the prior two posts we defined and discussed those “flations” that are most commonly known to those in and out of the financial world. The third and least known ‘flation’, Stagflation, is the combination of high inflation and high unemployment accompanied with slow economic growth – an economic situation that is generally avoided. The … More Knowing Your Flations – Part III: Staglation
In a previous blog post we have discussed the economical situation known as inflation where prices for consumers are increasing. Here, the topic will switch to the opposite of inflation, which is deflation. Deflation is the reverse of inflation in that generally consumer prices are on a downward trend that is the effect by the … More Knowing Your Flations – Part II: Deflation
The “Flations” consist of two very common terms: Inflation and Deflation. But within this three-part series, Stagflation will also be discussed. An understanding of each of these terms is important to not only the financial markets but to all individuals as well. When the word Inflation is used, one’s first reaction is that prices are … More Knowing Your Flations – Part I: Inflation
Further to the recent financial crisis, it is agreed that investment vehicles that are highly leveraged with little security may be gone forever in organized covered markets. Of course, whenever something is taken away it is replaced by something new. That new tool here is the covered bond. The long-term debt securities of covered bonds … More The Name’s Bond – Covered Bond.
There are projects that exist where the project’s owner/promoter has acquired an “exclusive” license to commercialize a product and/or service. Although the costs incurred by this person could be seen as an equity contribution to the project, the license itself, or value thereof, most of the time will not be. An example would be that … More What’s an “Exclusive License” and How Does it Work?
Though both Merchant Banking Institutions and Investment Banks contain the word “bank,” neither is actually a bank in the traditional terms where one would normally perform such activities as checking and savings accounts. In fact, at their core, they are quite different types of financial institutions that perform otherwise different services. Investment banks, on the … More Investment Banking vs Merchant Banking
Being able to realize one’s idea, expand a small business, or grow the capital assets of a company are three distinct challenges in their own right and can be difficult to accomplish. Early stage equity funding can help a small business with this particular obstacle. The need for early stage equity funding is meant to … More Defining Early Stage Equity Finance
As-Is-Where-Is value in business means exactly that. It is also a crucial clarification that must be made at the onset of every deal to be undertaken. When defining the statement “As-is Where-is,” it is simply the state in which the company or project currently stands without the inclusion of additional assets or liabilities as of … More The Value of As-Is-Where-Is
The term “Economical Viability” is not a phrase heard on a daily basis, outside of a few certain financial circles. That said, they are heard quite often, though separately. Therefore, to define this term let’s first view them individually. “Economical” (or economic) is generally associated with being careful, efficient, and prudent; thereby operating with little … More Defining “Economic Viability”
Capital Corp Merchant Banking 