Posts Tagged: collateral

Debt backed by Frequent Flyer Programs

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to CNBC, American Airlines is planning to issue $5 billion in bonds and seek a $2.5 billion loan backed by its frequent flyer program to pay back some of its debt used to help survive during the COVID crisis. Questions: How do airlines make money from their frequent flyer programs? What is the loan… Read more »

Collateral from a future job

Posted by & filed under Accounting Information Systems, Accounting Principles, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Intermediate Accounting, International Accounting, Managerial Accounting.

Some undergraduates will have a new option to help finance their degrees: pledging to pay a percentage of their future incomes in return for funds today. Questions: 1. How does the income-sharing program work? 2. What school is piloting this idea? 3. What are some aspects of the legal gray zone associated with these human… Read more »

Pop Goes the Bubble!

Posted by & filed under Accounting Principles, All Articles, Auditing, Financial Accounting, Intermediate Accounting, International Accounting, Managerial Accounting.

According to the New York Times, the drop in oil prices are dimminishing one of the few big bright spots that banks have enjoyed since the financial crisis. The reason is that banks have been experiencing a lending boom to companies in the nation’s energy industry. Questions: 1. Which banking group has the greatest investment… Read more »