What is Bank Credit Analysis Training? The bank credit analysis training equips students with the necessary skills to perform quantitative analysis of financial data to determine the creditworthiness of a borrower. The role of a bank credit analyst is crucial to the success of financial institutions. They help banks minimize debt risk by determining the…
What is Finance? Finance is defined as the providing of funding and management of money for individuals, businesses, and governments. The financial system includes the circulation of money, managing of investments, and lending of funds. In businesses, the finance team is responsible for ensuring the company has enough capital, that the appropriate investments are made,…
What are Money and Time-Weighted Returns? Money and time-weighted returns are rates of return typically used to assess the performance of a managed investment portfolio. Today, the time-weighted rate of return is the industry standard since it provides a fairer assessment of an investment manager’s performance. Money-Weighted Return When it comes to monitoring investment performance, money-weighted…
What is Continuously Compounded Interest? Continuously compounded interest is interest that is computed on the initial principal, as well as all interest other interest earned. The idea is that the principal will receive interest at all points in time, rather than in a discrete way at certain points in time. The continuous payment of interest…
What is the M&M Theorem? The M&M Theorem, or the Modigliani-Miller Theorem, is one of the most important theorems in corporate finance. The theorem was developed by economists Franco Modigliani and Merton Miller in 1958. The main idea of the M&M theory is that the capital structure of a company does not affect its overall…
How Can We Calculate Yield on Debt? Debt yield refers to the rate of return an investor can expect to earn if he/she holds a debt instrument until maturity. Such instruments include government-backed T-bills, corporate bonds, private debt agreements, and other fixed income securities. In this article, we will explore the four different types of…
What is Islamic Finance? Islamic finance is a type of financing activity that must comply with Sharia (Islamic Law). The concept can also refer to investments permitted under Sharia. The common practices of Islamic finance and banking emerged alongside the foundation of Islam. However, formal Islamic finance did not emerge until the 20th century. Nowadays,…
What is Ratio Analysis? Ratio analysis is a popular technique of financial analysis. It is used to visualize and extract information from financial statements. It focuses on ratios that reflect profitability, efficiency, financing leverage, and other vital information about a business. The ratios can be used for both horizontal analysis and vertical analysis. While they…
