Business

Pranabbhandari published in Business

Explain What Is Leveraged Finance

The usage of debt and debt markets has been increasing especially with the rising cost of raising equity as well as the easy availability of debt as well as leveraged financing in the market. One popular method of raising debt is through leveraged finance investment banking. Leveraged Finance or Leveraged lending is a commercial loan usually by a syndicate of banks to a particular company or a group of companies who may already be under a huge amount of debt. The risk in leveraged finance is high due to the high debt of the borrower company and that is why the transactions are generally arranged by an investment banking company that is known as the arrangers.

How large is the leveraged finance market?

Leveraged Finance and lending arose and gained prominence in the 1980s and the markets have expanded ever since then. The Leveraged finance investment banking market though is more prominent in the United States as compared to Europe. The total value of leveraged finance in the United States was at $497 Billion in 2010 which has more than doubled to $1.2 trillion as of 2019. As compared to the same, the markets in Europe had an outstanding leveraged loan worth $180 billion which was less than the yearly transactions conducted in the United States.

Why are Leveraged Loans undertaken?

Leveraged loans are often risky transactions for both the parties involved i.e., both the borrower as well as the lender. The borrower might already have high levels of debt on their books and taking on additional debt may push them to bankruptcy which could harm both the borrower and the lender. Despite the inherent riskiness of the transaction, there has been a huge demand for a leveraged finance investment bank in the United States. The transactions are particularly favoured to undertake Leveraged Buyouts especially in the case of LBOs by the management of the organization. Since the management won’t have the necessary finance to fund the buyout, leveraged loans are resorted to. In MBOs and LBOs, management often places their faith in overturning the fortunes of the company and repaying the loans from the cash flow of the company.

Apart from LBOs and MBO’s, leveraged finance is also used for strategic acquisitions that may lead to value unlocking or synergy creations as well as refinancing a firm. Refinancing generally is to change the capital mix of the organization and usage of debt allows them to reduce the overall cost of capital of the company.

How are Leveraged Loans structured?

Leveraged Loans are often structured in multiple tranches for providing protection to the senior and secured lenders whereas the losses up to an extent are borne by the junior or subordinated tranches of the lenders. The securitization form of transactions is also used in leveraged finance wherein the loan is transferred to a special purpose entity and such loan is securitized and sold off to various investors. Such securitization may also be as per various tranches for offering protection to the senior investors.

The structure of a leveraged loan or leveraged finance is often complex due to the various tranches as well as types of loans that are fitted in a single transaction. To manage as well as reduce such complexity, investment banking companies are hired to assist with the management of the transaction.

Role of Investment Banks in Leveraged Finance:

Investment Banks play a large role in leveraged finance as they are often the main part of the entire transaction. Investment Banks play the role of the intermediary between the financial institutions and the borrowers and allow either of the parties to feel at ease. Many companies even offer the services of underwriting the leveraged loans to the financial institutions reducing their risks and increasing the faith of the institutions in raising the loans to the borrower.

Investment Banks also generally monitor the transactions in order to ensure the borrowing firm does not face bankruptcy. Firms like Acuity Knowledge Partners, often assist financial institutions as well as Investment banks in monitoring the financial condition as well as the credit quality of the borrower to ensure they’re in no deterioration. In case of worsening conditions, the firm can act as an advanced monitoring system to ensure that the lenders or the investment bank step in and assist in course correction.

Conclusion:

Leveraged Finance Investment Banking in simple terms can be understood as a high-risk loan to a below-investment-grade company. The yield on such loans is higher than the normal rate in order to compensate for the additional risk being taken upon by the lenders. Leveraged Finance finds a market in economic upturns while taking a backseat in the downturns, however, the popularity of the means of finance, especially in the United States ensures that the transaction type is here to stay.

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Corine published in Business

How to Make a Good CV in 2021?

At a time when recruiters do not spend much time on each job application, making a simple, clear and concise curriculum vitae has become the guarantee to attract their attention and arouse their interest. Recruiters are receiving more and more applications and have less and less time to allocate to each of them (between 6 and 40 seconds per CV depending on the studies). Creating the perfect CV then became a sine qua non for landing a job.

Determine What to Include in the CV

The first step is to take stock of the information that will appear in the document. If this is your first time writing a CV, this step is even more important. The point is to identify the relevant elements of your professional career that echo the job description (experience, skills, profile sought in the advertisement, training, etc.) in order to write an application that is both suitable for the post and personalized.

This step requires your full attention since it is this work that will give relevance to your CV. Indeed, a good CV is an optimized CV in which only judicious elements appear according to the advertisement. For example, if you are applying for a sales position, no need to mention your training in butchery or your 6 months as a handler. Limit yourself to experiences that demonstrate knowledge of sales or customer relations (summer job, internships, fixed-term contracts, etc.).

Choose a Simple CV Template

Once you know exactly what information to put on your CV, it is time to choose the right cv template that will showcase them. You can take inspiration from existing examples on the Internet and create your CV using word processing software such as Word or use a tool that makes your job easier and offers templates to fill out. We recommend choosing an online CV creator. Thus, you just have to let yourself be guided to fill in the different sections and the site takes care of the layout and design. Free and without registration, this generator allows you to create a simple, efficient and clear curriculum vitae.

Include your professional social media profiles

Social networks must be highlighted on your CV. As a matter of fact, showing your networking strength on your resume is very advantageous. You can insert a QR Code pointing to your LinkedIn profile or your personal blog for instance. This will show that you are connected, follow the trends and give yourself good visibility. It will also allow recruiters to easily access your profile on LinkedIn. You can also include Twitter and Facebook on your resume. Apart from that, you can show them that you can learn new things, and you won’t be afraid of stepping outside your comfort zone.

In 2021, a professional CV is a simple, elegant and airy CV. But don’t confuse this simplicity with banality. You need a little originality if you want to grab the recruiter’s attention. To make your job easier, always consider using a reliable CV generator. You will save time and improve your chances to land a job interview.

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mark billy published in Business

Six Benefits of Cleaning Your Carpets Professionally

Carpets are one of the most common and wanted choices for flooring in homes worldwide. It is because of the plethora of colors and designs they come in that can pretty much go well with any setting. The maintenance of carpets, however, is something that all homeowners should consider seriously. Here are a few reasons to hire a professional Carpet Cleaning Company Oxon Hill MD.

Better Indoor Air Quality

The reason why you should seriously consider the professional cleaning of your carpets is that it poses certain health threats to you and your family. We all know carpets to be fairly good at retaining particles of dirt and dust even after vacuum cleaning, which is where all the health risks originate.

Carpets are major contributors to the indoor air of your house, and if it has a layer of dirt and dust built up with time, it is certainly going to contaminate the air with it as well. Having them thoroughly cleaned by professionals with detergent decontaminants is the best thing you could do to retain that stylish carpet or rug in your room without causing any health risks!

Fights Against Infestations

Carpets usually have a greasy base because of the lack of ventilation at the bottom causing high humidity levels. Other than dirt and dust, the carpets are known to house dust mites which can be a serious cause for concern. Also, mold flourishes in the ideal conditions of humidity at the base with lots of material to breed on.

Having a regular and scheduled cleaning of your carpets and rugs will cleanse them of all the built-up particles. All in all, regular cleaning will most definitely prevent any future infestations from happening as well since the cleanliness and decontamination is taken care of.

Odor-Free Home

If you have kids in your house or pets, keeping the carpets and rugs clean and odor-free can be a tiring thing to do. Pouring vinegar or baking soda over the areas where pet feces or urine was, or where the kids spilled something is never going to help you in the long run.

Carpets tend to take in all the moisture from anything that is spilled on them, and when that remains there unventilated for a while, it causes irritating and unbearable odors. A professional carpet cleaning service Hollywood CA will rid your carpet of all the stains and odors that had been built up, giving you a carpet smelling as good as new to put back into the living room!

Looks Better

You lay carpets on the floor because you think they might be a more fitting and stylish addition to your current set-up. What good is going to be when all the color has been faded because of a layer of dirt, dust or grease?

Having your carpets professionally cleaned at least twice a year will ensure striking appearance and good looks of them all year round. You wouldn’t have a thing to worry about what time you get guests over or whether letting your kids and pets play as much as they want!

Saves Time

If you chose a professional carpet cleaning company to clean the carpets at your house, you are taking a lot of precious time for yourself which you would have otherwise spent scrubbing and washing all the pieces, and to no perfect result as well. A carpet cleaning company has a sufficient pair of hands to get onto multiple cleaning tasks right away and also properly equipped to make no delays in between.

If you only need a carpet cleaner just once a year, it’s probably better to rent a machine or hire a professional service, rather than purchasing a carpet cleaner outright.

Worth The Investment

When you clean your carpets yourself, they will no doubt look clean on the surface and broom and vacuuming gets the entire residue from the surface letting them bright. But there are still going a lot of bacteria and allergens that are not visible to the eye but trapped in the fabrics. You need to hire a professional carpet cleaning company to ensure that your carpet is perfectly healthy for you to put back and use.

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