LOC backed and Model: Difference between pages

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Letter of credit backed.  
A representation of a real situation using a selected set of simplifying assumptions and relationships.  


An issue, usually of commercial paper, backed by a bank letter of credit – effectively a bank guarantee.
 
In finance, financial models are widely used as tools for valuation and to support financial decisions.
 
An important benefit of well-structured financial models is to facilitate sensitivity analysis and stress testing.




== See also ==
== See also ==
* [[Commercial paper]]
* [[Agent based modelling]]
* [[Letter of credit]]
* [[Business model]]
* [[Decision tree]]
* [[Financial model]]
* [[Four-corner model]]
* [[Game]]
* [[IRB]]
* [[Model risk]]
* [[Modelling]]
* [[Mostly positive]]
* [[Scenario analysis]]
* [[Sensitivity analysis]]
* [[Shadow model]]
* [[Spreadsheet]]
* [[Stress test]]
* [[Three-corner model]]
 
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 15:45, 21 December 2020

A representation of a real situation using a selected set of simplifying assumptions and relationships.


In finance, financial models are widely used as tools for valuation and to support financial decisions.

An important benefit of well-structured financial models is to facilitate sensitivity analysis and stress testing.


See also