Understanding Loan Equivalent Risk (LER): How Banks Manage Risk Beyond Currency Fluctuations Vinu: Hey Manu, I heard about this "Loan Equivalent Risk" (LER) today, but I’m confused about how it works. Could you explain it with a real example? Manu: Sure, Vinu! Let’s take an example. Imagine ABC Ltd....
Understanding Treasury Yields: A Beginner's Guide to Bond Returns and Market Signals Vinu: Hey Manu, can you explain what a treasury yield is? I've heard about it, but I'm not really sure what it means. Manu: Sure, Vinu! Treasury yield refers to the return an investor gets on a U.S. government bond ...
Understanding AUM in NBFCs: A Conversation Between Manu and Vinu Vinu: Hey Manu, I've been reading the annual report of an NBFC, and they keep mentioning AUM. What exactly is AUM, and how is it calculated for NBFCs? Manu: Good question, Vinu! AUM, or Assets Under Management, refers to the total valu...
Cash Credit against Book Debts - A Discussion Vinu: Hi Manu, can you help me understand how to assess the Cash Credit or Overdraft limit for a business entity against Book Debts as security? Manu: Sure, Vinu. Assessing the limit involves a thorough evaluation of the business’s financial health and t...
Partnership Reconstitution: Key Actions for Lending Bankers Vinu: Hey Manu, I've been reading up on the reconstitution of partnerships and the actions we need to take from a lending banker's perspective. Can we discuss this? Manu: Sure, Vinu. What specifically do you want to know about? Vinu: What a...