LBO stands for Leveraged Buyout and refers to the purchase of a company while using mainly debt to finance the transaction. Leveraged Buyouts are usually done by private equity firms and ros...
Leverage is the use of borrowed money to enhance the returns of any investment. Using leverage, an investor is able to achieve the returns of a very large investment whilst only providing the capital ...
A letter of intent is any written communication between two parties agreeing on the trade of a good or service, or any corporate action (merger, acquisition etc.). This letter usually outlines the spe...
A lender of last resort is, as the name implies, a lender that will offer credit to institutions when they cannot find it anywhere else. The most common lender of last resort is the Central Bank, the ...
A large-cap (large capitalization) firm is one with a market capitalization of over $10 billion. This figure is an approximation and may change over time or be defined differently among different indu...
A key performance indicator or KPI is a quantifiable metric used by a business to assess performance. Target levels for these KPI's are frequently set and the company aims to either meet or exceed the...
A junk bond is a high-risk bond that is rated BB or lower by one of the main rating agencies. There is a reasonably high risk that the issuer of the bond will default on the payments, hence ...
A junior tranche is the lowest tranche of a security, i.e. the one deemed most risky. Any losses on the value of the security are absorbed by the junior tranche before any other tranche, but for accep...
A Joint Venture (JV) is when a group of business collaborate on a business project, each taking a share of the profits, losses and control. A joint venture simply requires working together, no merger ...
Investment Banking Division is a sector of an investment bank that is responsible for corporate finance and advisory. It is broadly split into two sectors, products and industries....