Loan Market Association and Opportunity cost: Difference between pages

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imported>Doug Williamson
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(LMA).
The expected return that is foregone by investing in a project, rather than in the next best use of capital or other resources.


The Loan Market Association is a trade body for the Europe, Middle East and Africa (EMEA) [[syndicated loan]] market, founded in 1996 by banks operating in that market.
It is the opportunity cost of capital and other resources that is the relevant economic measure for financial decision making purposes.


Promoting loan markets in various ways, the LMA particularly publishes model documentation and "market guidelines" for use in both primary and secondary markets with a view to achieving more standardisation of widely accepted market practice.


The [[Association of Corporate Treasurers]] (ACT) has supported the LMA's primary documentation initiative since its inception. The LMA discusses its primary investment grade borrower documentation with ACT prior to publication. With [http://www.slaughterandmay.com/ Slaughter and May], ACT publishes [http://www.treasurers.org/loandocumentation commentaries] on the LMA primary documents
== See also ==
 
* [[Cost of capital]]
 
* [[Opportunity cost of capital]]
==See also==
* [[Production possibility curves]]
 
* [[Supernormal profit]]
* The Loan Market Association website http://www.lma.eu.com/default.aspx
 
[[Category:Long_term_funding]]

Revision as of 11:05, 22 June 2016

The expected return that is foregone by investing in a project, rather than in the next best use of capital or other resources.

It is the opportunity cost of capital and other resources that is the relevant economic measure for financial decision making purposes.


See also

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