Best Buisness & Loans

Leant how to sift through credit quotes

admin — Mon, 24 May 2010 08:34:50 +0000

Compassion is the ability to understand and communicate that we recognize each other as fallible human beings. It means that we understand that people make mistakes, sometimes fail, and do not always live up to their potential or to our expectations. Dealing with our strengths and weaknesses as people and doing so with dignity and respect for others are all part of compassion. When we do not judge others and are sensitive to their situations, we build trust with them, opening the door for them to be honest and straightforward with us.

While candor refers to the accuracy of communication, credibility refers to the intent of the person offering it. A person’s motive for sharing information with you speaks to his credibility.Are his motives self-serving? Is he giving you information to make others look bad? Partners that are not credible limit trust because people must sift through the message to understand the intent. Once partners weaken their credibility, their effectiveness and that of the partnership are severely damaged.

Whenever you move from “I” to “we” in a partnership, trust issues emerge. Unless partners can reach a consensus, they’ll find that power plays, egos, conflicting agendas, and other disruptive dynamics can take over even well-intentioned partnerships and spin them into chaos and dysfunction. Trust is absolutely essential for working through these complex human dynamics.

Credit approval is about sharing information

admin — Sun, 25 Apr 2010 22:43:34 +0000

Communication is about sharing information. Some of that information is related to the task.What are we doing, why and how? It’s information our partners need to feel included in the process and to accomplish their tasks. But we must also share information about the relationship: how we are resolving our conflicts, building trust, making decisions, and so forth.Without this type of communication, our relationship may not evolve and develop as we move through the Stages of Relationship Development.

Listening is another important communication skill needed to build trust.When we actively listen to our partners,we share complete and accurate information between us. This ensures that no partner feels left out of the communication loop—one of the biggest obstacles to building trust.When we listen to our partners,we gain insights into their needs and what is motivating them to work collaboratively with us. This information enables us to help our partners get their needs met. This is important if we want our partners to feel we are working for them.

One final note on communication is that technology has created many platforms for us to communicate with each other. Some of us prefer e-mail while others would rather pick up the phone or have a face-to-face conversation. Be sure to check with your partners and determine their preferred method of communication and try to meet that need as often as you can reasonably do so.

Those elusive payday loan details

admin — Tue, 23 Mar 2010 18:07:02 +0000

Truth is a rather elusive and subjective topic.What is true from one’s perspective may not be true from another’s perspective. I do not hold truth as absolute, but I do know when someone is not being straightforward with me. I would rather have people tell me the hard truth than undermine my trust by making indirect or misleading halftruths.

Having an accurate assessment of a person’s knowledge of a situation is a stepping-stone toward building trust. Partnerships work when people have the confidence that what the other is saying is direct, truthful, and above board. While the truth may be subjective, a person’s sincerity in what they believe to be true is not. Jack, for example, runs a very large service company.His building management services are in demand.However, his customers cannot trust him because he avoids direct conversation about issues or problems. In short, he has a problem with candidness. He evades, stumbles, and misrepresents issues, and while he may not out-andout lie, many people doubt his honesty, destroying trust in the relationship.

How payday loan collaboration works

admin — Wed, 24 Feb 2010 14:18:58 +0000

Collaboration is the ability to create an environment of inclusion through sharing information and working together to achieve a goal with a mutual sense of duty.When we collaborate with each other, we share a responsibility to watch out for each other.When I talk about collaboration, I use a much broader definition than just getting work done, though that is an important component. Collaboration includes the ability to make joint decisions, effective two-way communication, listening, and helping each other get their needs met. It also means helping each other achieve relationship goals such as working on building trust or reaching a win-win outcome.When one party tries to collaborate and another party does not, frustration and mistrust often occur.

Being committed to the partnership is an important relationship element of trust. If I feel committed to helping us achieve our goals and objectives and feel that you are not, then I will not trust your motives or objectives. If I see that you have a high commitment to the partnership, I will have a sense that you are working to achieve our mutual objectives and a high sense of trust in you. When I feel you are committed to the partnership, I trust that you are going to work as hard as I am to ensure that the alliance will succeed. This builds trust in our commitment to the partnership.

What information about a credit you should gather

admin — Sat, 02 Jan 2010 09:46:27 +0000

The majority of price movements that is caused by a rating action is explained by new information which is revealed at the time of the rating action. Typically companies reserve the right to hold back certain information from investors, clients, business partners and competitors. This can be long-term projections, business plans or internal analyses. Usually rating agencies have access to internal documents during their rating process. Therefore, the rating of a company reflects more information than available to the public and to institutional investors such as mutual funds or insurance companies. A rating change itself is therefore an information about a change of a company’s credit quality because it incorporates nonpublic information.

What factors affect your credit value

admin — Sat, 19 Dec 2009 17:02:10 +0000

Significant price changes are not only observed after changes of the rating, but also after changes of the rating outlook. In many cases technical factors represent a major reason for bond price changes after a negative rating action. In particular, large price movements can be observed when investment restrictions of institutional investors are triggered by a rating action.

A good example is the downgrade of Fiat in June 2002. The downgrade from Baa2 to Baa3 induced a large sell-off because investors anticipated
a further downgrade to high yield. But Figure 9.1 also shows that bond prices already fell significantly when Moody’s put Fiat on review for downgrade.

Empirical studies by Weinstein (1977), Hand et al. (1992) and Kliger and Sarig (2000) highlight the following relationships between rating changes
and a corporate issuer’s bond and stock prices:

Bond prices adjust to a new rating.
Equity prices also react on rating changes, usually opposite to the bond price movements.
Surprise upgrades tend to result in a reduced implied equity volatility.

There is no indication that new rating information has an impact on firm value. According to the Asset Substitution Theory equity and bond prices react in opposite directions to rating changes, which ultimately leads to changes in the ratio of the market value of equity to debt.

Changes in credit quality and their perception

admin — Sat, 05 Dec 2009 11:45:17 +0000

Rating outlooks and watchlists tend to have a built-in lag, too. Moody’s has an 18-month horizon for its outlooks and 90 days for its watchlist, whereas S&P targets 90 days for its credit watch listings, and a longer but unspecified time-horizon for outlooks. Hence, credit ratings appear to be serially correlated. This in turn creates the impression that rating actions tend to lag changes in credit quality and their perception by market participants, reflected in spreads, substantially. Current research focuses on the rating outlook and its impact on corporate bond prices. Since the mid-1990s, European corporate bond investors on average have become much more professional. Consequently, changes in an issuer’s credit quality are anticipated earlier than they were some years ago. In conjunction with the increased liquidity of the European corporate bond market this has led to the observation that bond prices adjust rapidly to the fundamental assessment of market participants and their expectations regarding a possible rating change. Therefore, changes of the rating outlook that lead actual rating changes are monitored closely by corporate bond investors.

Credit worthiness is a stable concept

admin — Sat, 21 Nov 2009 19:21:09 +0000

In order to arrive at a rating, one crucial assumption is made: credit worthiness is a stable concept. This means that historical data may be used to transform the information obtained from a company into estimates for default probability and loss severity. Since fundamentals change gradually over time, multinotch rating changes are unlikely. Rating agencies therefore use Outlooks and Watch Lists as leading indicators for potential rating changes. They signal in which direction the next rating step will probably occur. If, for example, a negative outlook is assigned, the rating agency usually defines certain criteria that have to be met by the issuer over a certain period of time, otherwise a rating downgrade can be expected. An example would be that a company must achieve positive free cash flows within a predetermined time-horizon. The failure to do so will result in the loss of the current rating.

Confront your credit problems

admin — Wed, 28 Oct 2009 22:07:49 +0000

Thought needs to be given to how one avoids head-on confrontation with the market leader, the brand with the most to lose. The market leader can be expected to react strongly against newcomers with the aim of crushing them before they have a chance to get established. The brand that is attacking the market leader therefore needs a valuable, attention-grabbing benefit or distinguishing feature, and the ability to convey its message convincingly. Once a position has been taken, the decisions that follow should ensure that it is consistently defended. Consistency is essential: positioning means striving for leadership in one particular area. Another important decision is therefore the choice of a powerful and simple message. For example, Volkswagen launched the Beetle in the United States with the slogan “Small is Beautiful” and for many years Mars bars purported to help you “Work, Rest and Play” (particularly if eaten every day). But you must know how the message will be received. Often the best way to establish a position is to associate with something that may already be in people’s minds. An example is customers’ desire for value, highlighted by low-cost airlines, such as easyJet, Ryanair and South-West Airlines, which emphasise their no-frills service and low prices.

Deciding where to position a credit

admin — Sun, 25 Oct 2009 19:56:11 +0000

Positioning depends first on finding a niche or part of the market where there is space to establish a profitable position. To discover whether one exists requires an understanding of the trends and factors influencing the market.

How best to focus on the customer is another important decision. How will potential customers react to the message or offer? Or, to put it another way, what message will have the greatest impact on the customer? With positioning decisions, timing is important. First movers have a head start and can get to know the market in detail and build a strong customer-base, ideally establishing a rapport with customers. Brands that are not the first mover should endeavour to launch when the market leader is weak or quiet, or both.