Uncommitted Facility- An uncommitted facility is a loan with loosely specified terms and conditions but with an understanding that the funds will be made available by the lender when the borrower demands.

 

Underlying Assets- An underlying asset is the asset on which the price of a derivative depends.

 

Underwriting- Underwriting assesses the borrower's eligibility to receive a credit, a loan or a bond, by analyzing financial and other information furnished by the potential borrower or obtained elsewhere.

 

Unexpected Loss- An unexpected loss describes the loss in excess of the expected loss and is expressed with a certain confidence level.provides capital through short or medium-term debt; includes seasonal and cyclical loans.

 

Unlevered Beta- This is the beta for the sector, unlevered by the market value debt to equity ratio for the sector:

Unlevered Beta = Beta / (1 + (1- tax rate) (Debt/Equity Ratio))

See description of debt/equity ratio for more detail.

 

Unlevered Beta Adjusted for Cash- The unlevered beta that you compute for a firm reflects both its operatiing assets and the cash holdings of the firm. Since the latter should have a beta close to zero, we estimate the beta of just the operating assets by using two numbers - the unlevered beta and the cash as a percent of overall firm value (in market terms).

Unlevered Beta adjusted for cash = Unlevered Beta/ (1 - Cash/ Firm Value)

Thus if the unlevered beta for the entire firm is 1.20 and the firm has a cash balance of 20%, the unlevered beta corrected for cash would be 1.5 = 1.2/(1-.20).

ר רועי פולניצר, MBA ,CRM , FRM הינו הבעלים של שווי פנימי - ייעוץ והדרכהשווי פנימי, רועי פולניצר, ניהול סיכונים, הערכות שווי, Intrinsic Value, Roi Polanitzer, Risk Management, Valuation, VaR, FRM. PRM, CRM. GARP, PRMIA, IARM