Volumetric Production Payment (VPP)
What is Volumetric Production Payment (VPP)? A volumetric production payment (VPP) is a means of financing used predominantly in the oil and gas industry in which the owner of an oil or gas property sells a percentage of the total production of hydrocarbons for an upfront cash payment. The VPP deal includes an overriding royalty interest, i.e., a...
S&P 500 Dividend Aristocrats
What is the S&P 500 Dividend Aristocrats? The S&P 500 Dividend Aristocrats, also known as the Dividend Aristocrats, is an exclusive index within the Standard and Poor’s 500 that was launched in 2005. It contains companies that increased their dividend payouts for over 25 consecutive years. It is a high-performance index and consists of approximately...
Capital Flows
What are Capital Flows? Capital flows are transactions involving financial assets between international entities. Financial assets to be included can be bank deposits, loans, equity securities, debt securities, etc. Capital outflow generally results from economic uncertainty in a country, whereas large amounts of capital inflow indicate a growing economy. Two Major Types of Capital Flow...
Exchange Rate
What is an Exchange Rate? An exchange rate is the rate at which one currency can be exchanged for another between nations or economic zones. It is used to determine the value of various currencies in relation to each other and is important in determining trade and capital flow dynamics. Understanding Exchange Rates Exchange rates...
Asset and Liability Management (ALM)
What is Asset and Liability Management (ALM)? Asset and liability management (ALM) is a practice used by financial institutions to mitigate financial risks resulting from a mismatch of assets and liabilities. ALM strategies employ a combination of risk management and financial planning and are often used by organizations to manage long-term risks that can arise...
