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Should it be necessary to arrange for factoring of the receivables, interest expense would increase.
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It then packages those receivables into bonds and sells them to investors, who receive interest derived from the insurance payments.
It then packaged those receivables into collateral for bonds and sold the bonds to investors, who received interest derived from the insurance payments.
In another obvious move to squeeze working capital, he cracked down on receivables by assessing interest on late payers.
In another obvious move to squeeze working capital, he cracked down on receivables by assessing interest for late payments.
Alternatively, interest may be receivable only upon maturity or redemption of the bond, as in the case of savings bonds.
The deal also includes Synchrony's acquisition of $1 billion in participation interests in PayPal receivables held by certain investors and a chartered financial institution, the company said.
In a win for activist investor William Ackman, Target announced Monday that it had struck a deal to sell a 47percentt interest in credit card receivables to JPMorgan Chase for an initial investment of $3.6 billion.
The research house praised the fact that Circuit City will sell its receivables at par, turn its retained interest into cash, and eliminate risk while continuing to generate similar levels of profit.
The asset-backed securities in question, which were sold in 1998, were interests in pools of receivables — in this case, simple financial contracts that customers of Heilig-Meyers signed when they bought furnishings and agreed to pay for them over time.
At closing, Target would sell an undivided interest in its credit card receivables to JPMorgan Chase for cash proceeds of about $3.6 billion.
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