Glossary entry (derived from question below)
Catalan term or phrase:
contracte d'apalancament
English translation:
leverage contract
Aug 9, 2001 11:24
22 yrs ago
Catalan term
jo
apalancament
Non-PRO
Catalan to English
Bus/Financial
Contracte de apalancament.
The title of a contract between a bank and client(s) for financial services/loan for investments.
The title of a contract between a bank and client(s) for financial services/loan for investments.
Proposed translations
(English)
| 0 | Leverage Contract |
Sean Lyle
|
Proposed translations
16 hrs
Selected
Leverage Contract
Is my interpretation right?:
Client wants to invest, does not have enough money, so borrows in order to invest, without offering any real guarantee in return. Therefore there is a double risk - on the loan and on the final investment.
Investing money you don't have is leverage, which is how a lot of companies were bought in the 80 in the era of the junk bonds.
If there is a real guarantee apalancament is misused and should read "afiançament", or "pignoració".
I just checked with the local managers in a couple of banks and a couple of Caixas here in Catalonia and none of the four do this type of high-risk operation - it sounds more like an investment house than a bank.
I hope this helps.
Client wants to invest, does not have enough money, so borrows in order to invest, without offering any real guarantee in return. Therefore there is a double risk - on the loan and on the final investment.
Investing money you don't have is leverage, which is how a lot of companies were bought in the 80 in the era of the junk bonds.
If there is a real guarantee apalancament is misused and should read "afiançament", or "pignoració".
I just checked with the local managers in a couple of banks and a couple of Caixas here in Catalonia and none of the four do this type of high-risk operation - it sounds more like an investment house than a bank.
I hope this helps.
4 KudoZ points awarded for this answer.
Comment: "Moltes gracias, Sean!"
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