EBITDA: The Good, The Bad and The Ugly (Back to School)

EBITDA is one of those terms that has received increased usage but usually for the wrong reason. This article will define it and discuss how it can be useful but also misleading.

EBITDA is fancy tax lingo for earnings before interest, taxes,depreciation, and amortization. It is calculated by taking operating income and adding back to it interest, depreciation and amortization expenses. EBITDA is used to analyze a company’s operating profitability before non-operating Continue reading “EBITDA: The Good, The Bad and The Ugly (Back to School)”

Extended Collateral Term Repo

On6 December 2011Bank of Englandposted on its website information about the new financial instrument, which main goal is to preserve liquidity during the shortage  as to save the financial stability of the country.

“In light of the continuing exceptional stresses in financial markets, the Bank of England is today announcing the introduction of a new contingency liquidity facility, the Extended Collateral Term Repo (ECTR) Facility. This Facility is designed to mitigate risks to financial stability arising from a market-wide shortage of short-term sterling liquidity. There is currently no shortage of short-term sterling liquidity in the market. But should that position change, Continue reading “Extended Collateral Term Repo”

Derivatives Credit : Credit Derivatives part II


As I left the space to define the various types of credit derivatives so here we go:

Credit default swap: Credit default swap can literally be defined as an option to swap a credit asset for cash, should it default. A credit default swap is essentially an option, and option bought by the protection buyer, and written by the protection seller. The strike price of the option is the par value of the reference asset. Continue reading “Derivatives Credit : Credit Derivatives part II”

Derivatives Credit : Credit Derivatives

People write to remember things, I write to forget. I am sure that definitely had many post on Credit derivatives.
Many of my friends and colleagues are still not so familiar with them and just wanted to define for them . For them the understanding of credit derivatives is that these monster was behind the subprime crisis in 2008, Lehman crisis, and later the Eurocrisis and now the Grexit.

Let me try to put some definitions quote and unquote: Continue reading “Derivatives Credit : Credit Derivatives”

Grexit and Brokers Terminologies

The Greek puzzle is getting cozy each day . The G8 imageleaders backed Greece in euro zone as reported by Reuters. Putting any new remarks it looks like to wait and watch the scenario and action by the regulators, politicians.

Today I thought of sharing some old brokers terminologies and bit personal experience. As I quoted on FB Continue reading “Grexit and Brokers Terminologies”