SAST 3701 Lecture 2: Lecture 2 Notes
27 Sep 2016
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Principal of the loan + interest on the loan = fixed. Anything left over is for shareholders or equity holders: theoretically credit = safer. Creditor has a rst claim on the 18726$ (cash ow which is coming out: contractional agreement which outlines the terms of those cash ows. Certain contractional provisions which can be enforced in a court of law: credit = governed by the law pretty safe i. e. debtor can be taken to court if debtor doesn"t pay back loan. You want to be a creditor in a country which has a rule of law: i. e. - united states = good = great judicial system. China = bad = no rule of law: if you"re the creditor in china, very little judicial laws to get your money back. What books would you recommend to someone who would like to understand the current and future global nancial climate.
