What does TTLM mean in UNCLASSIFIED
TTLM is an abbreviation for "Tranche Thickness Loss Multiple". It is a measure used to determine the depth of a tranche, or layer, in a capital structure. A larger TTLM value indicates that more equity has been retained by the issuer, resulting in a more senior position within the capital structure.
TTLM meaning in Unclassified in Miscellaneous
TTLM mostly used in an acronym Unclassified in Category Miscellaneous that means Tranche Thickness Loss Multiple
Shorthand: TTLM,
Full Form: Tranche Thickness Loss Multiple
For more information of "Tranche Thickness Loss Multiple", see the section below.
Essential Questions and Answers on Tranche Thickness Loss Multiple in "MISCELLANEOUS»UNFILED"
What is TTLM?
TTLM stands for "Tranche Thickness Loss Multiple". It is a measure used to determine the depth of a tranche, or layer, in a capital structure.
Why is TTLM important?
TTLM is important because it helps to identify the seniority of different layers within the capital structure. A large TTLM value indicates that more equity has been retained by the issuer, resulting in a more senior position within its capital structure.
Who uses TTLM?
Banks and financial institutions use TTLM to assess the risk associated with different layers in a capital structure. By understanding this measure, they are able to gauge their exposure level as well as create products that generate returns while limiting risk.
How can I calculate TTLM?
To calculate TLSM, you will need to take into account both the size of the tranche itself and its corresponding coupon rate (the return investors receive for holding it). Divide the size of the tranche by its coupon rate and multiply this result by 100; this will be your tranche thickness loss multiple (TTLM).
What does it mean if I have a high TTLM value?
If you have a high TTLM value, it indicates that there was more equity retained by your issuer when issuing debt securities, resulting in your securities having seniority over other tranches and layers in your capital structure.
Final Words:
In conclusion, Tranche Thickness Loss Multiple (TTLM) is an important tool used to assess risk associated with different layers in an organization's capital structure. By understanding this measure, banks and financial institutions are better equipped to create products that generate returns while limiting risk exposure levels.
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