What Is a Credit Sleeve? A credit sleeve is a form of credit agreement backed by physical assets, where the sleeve providing party, known as the “sleeve provider,” will offer working capital and collateral on behalf of another company, known as the “sleeve recipient.” The sleeve provider will essentially co-guarantee certain outstanding credit arrangements that the sleeve
What Is a Credit Spread? A credit spread, also known as a yield spread, is the difference in yield between two debt securities of the same maturity but different credit quality. Credit spreads are measured in basis points, with a 1% difference in yield equal to a spread of 100 basis points. As an example, a
What Is a Credit Spread Option? In the financial world, a credit spread option (also known as a “credit spread”) is an options contract that includes the purchase of one option and the sale of a second similar option with a different strike price. Effectively, by exchanging two options of the same class and expiration
What Is a Credit Sweep? A credit sweep is also known as an automated credit sweep. This term refers to an arrangement between a bank and a customer (usually a corporation) whereby all idle or excess funds in a deposit account are used to pay down short-term debt under a line of credit. The client
What Is a Credit Union? A credit union is a type of financial cooperative that provides traditional banking services. Ranging in size from small, volunteer-only operations to large entities with thousands of participants spanning the country, credit unions can be formed by large corporations, organizations, and other entities for their employees and members. Credit unions are
What Is Creditworthiness? Creditworthiness is how a lender determines that you will default on your debt obligations, or how worthy you are to receive new credit. Your creditworthiness is what creditors look at before they approve any new credit to you. Creditworthiness is determined by several factors including your repayment history and credit score. Some
What Is a Credo? Credo is a Latin word, which the Oxford English Dictionary defines as “a statement of the beliefs or aims which guide someone’s actions.” In the corporate world, a credo is similar to a company’s mission statement, its beliefs, principles, or purpose. A company’s website likely will contain a prominently displayed mission
What Was the Crime of 1873? The “Crime of 1873” was the notable omission of the standard silver dollar from the coinage law passed by Congress on February 12, 1873, and signed into law by President Ulysses S. Grant. This omission subsequently paved the way for the United States’ adoption of the gold standard, which
What Is Crisis Management Coverage? Crisis management coverage is insurance coverage designed to help a business limit the negative impact of events on the business’ reputation. It is an insurance agreement usually made as part of technology errors and omissions (E&O) and Internet/online property and liability insurance policies. Larger corporations are the most frequent buyers of
What Is Critical Mass? Critical mass is the point at which a growing company becomes self-sustaining and no longer needs additional investment to remain economically viable. It is a crucial stage in the development of a growing company. It is the point at which the business becomes profitable enough to continue growing by itself and no
