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Pandemic-Related Deal Litigation Highlights Buyer Leverage in Transactions Requiring Debt Financing

Cooley M&A

The decisions from the court on those preliminary matters, as well as the arguments raised by legal counsel, offer some valuable lessons for sellers considering sale transactions that require debt financing, and may motivate sellers to re-evaluate certain provisions and remedies that have become customary in those transactions.

Debt 40
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Hard Landing

Wall Street Mojo

Hard Landing Meaning Hard landing refers to a significant economic downturn or slowdown following a period of fast or rapid growth. Nations must prevent it to avoid a significant drop in economic growth. Moreover, it may lead to prolonged economic stagnation and even recession.

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What Is the Solow Growth Model (Definition and Key Assumptions)?

Peak Frameworks

The Solow Growth Model is an economic framework that attempts to explain long-term economic growth. The model, named after Nobel laureate Robert Solow, is indispensable for understanding investment decisions and the dynamics of economic growth. Take, for instance, the aftermath of the 2008 financial crisis.

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5 Cs of Credit: How Lenders Evaluate Borrowers

Peak Frameworks

5 Cs in Detail , Character Character pertains to an individual's or a company's historical record when it comes to managing debt and fulfilling obligations. Debt-to-income ratio: One common metric used to determine capacity. It is the proportion of a borrower's monthly debt payments to their monthly gross income.

Debt 52
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Treasury Bills: Definition, How it Works, Benefits

Peak Frameworks

A classic example of T-Bills in action occurred during the European Sovereign Debt Crisis. Investors, wary of the uncertainties in European debt markets, turned to U.S. Debt Ceiling Crisis , T-Bills experienced an unusual yield spike as investors momentarily questioned U.S. Represented by the full faith and credit of the U.S.

IT 52
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The Bretton Woods Agreement: History and Impact

Peak Frameworks

During this time, world leaders recognized the need for a new monetary order to ensure stability and prevent future economic crises. This trust is what makes modern crises like the fall of Lehman Brothers in 2008 so globally impactful, as they threatened the stability of a currency now integral to global trade.

Finance 52
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What is Commercial Paper? Definition and Key Characteristics

Peak Frameworks

Commercial paper is a form of unsecured short-term debt. Because of its short duration, commercial paper allows issuers to manage immediate liquidity needs without locking into long-term debt. Absence of Covenants Unlike some longer-term debt instruments, commercial papers usually don’t come with restrictive covenants.

Finance 52