Waiting for the good credit news
The good news is that people can move from independence to interdependence. The first step is making a realistic assessment of the management style practiced in the organization today. At work, do you frequently hear, “I don’t care what you think. I’m the boss—so just do it!”? This type of statement, and the thinking and [...]
An important skill in resolving debt problems
An important skill in helping organizations move from independence to interdependence is the ability to achieve consensus. It’s important because consensus drives collaboration between partners. The purpose of using a consensus style of decision making is to create winwin scenarios. Consensus decision making means that all parties feel confident about group decisions and are able [...]
Look for local payday loan market
According to Stack, Springfield’s success is based on attributes that are the exact opposite of those listed by the telecommunications company employees. While the telecommunications company is still in business, it’s a regulated monopoly. And, not surprisingly, it is clinging to its monopolistic practices by introducing lawsuits to prevent competition from entering its local service [...]
Achieving a good loan resolution
Parties will achieve resolution through their joint efforts to discover the best solution. Communication skills are critical. We helped people become better listeners by focusing on a few steps: Pay close attention to what others are saying. Don’t allow yourself to be distracted by outside influences. Look at your partners when they are talking. Be [...]
A reliable estimate of credit risk
Credit rating agencies try to provide investors with a reliable estimate of credit risk. While S&P’s assessment of credit quality is based on the probability of default, Moody’s uses the product of the probability of default and loss given default, or in other words loss severity, to arrive at a rating. The default probability tracks [...]
Prevent potentially credit-detrimental activities
Clearly corporate borrowers have more detailed information about their businesses and credit profiles than do lenders, in particular when they access capital markets to finance their business. Commercial banks usually have a close contact with their clients, thus lending decisions are based on a profound understanding of the borrowers. Because relations between companies and banks [...]
Independent assessments of the credit quality
Agency ratings are a standard metric of credit quality. Yet the blowup of large corporations like WorldCom, Enron and Parmalat has raised questions about the timeliness of rating changes. Nevertheless, agency ratings are a convenient, widely used indicator for a borrower’s ability to service its liabilities. In their mission statement Moody’s, one of the world’s [...]
Comparison of credit portfolio products
As of December 2003, the iBoxx Euro Liquid Corporates Index offered a spread over duration-matched government bonds of 60 bp. Assuming stable spreads, an investor, who measures his performance against government bonds, would have expected to earn an excess return of 60 bp. Yet, this calculation ignores the risk of credit events. If one name [...]
The credit card did not result from a market need
The role of senior managers in developing innovation is often more significant and direct, and it relies on the support and use of information and knowledge. The commercial development of the credit card is an example. In 1958, researchers in the Customer Services Research Department at the Bank of America, with the remit to develop [...]
Knowledge and innovation: the development of the credit card
The word innovation conjures up the image of a process that is spontaneous and unpredictable, even unmanageable. Innovation literature abounds with stories of serendipitous discoveries and independent-minded champions doggedly pursuing an idea until they hit the jackpot. Often, as the stories don’t fail to stress, the inventors had to persist in secret in their labs [...]