2024 CFA Level I Exam: CFA Study Preparation

Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.

The major objectives of a short-term borrowing strategy:

Ensuring that sufficient capacity exists to handle peak cash needs.
Maintaining sufficient sources of credit to be able to fund ongoing cash needs.
Ensuring that rates obtained are cost-effective and do not substantially exceed market averages.

Several addition factors to consider:

Size and creditworthiness. In general, the larger (the borrower or the lender), the better terms.
Legal and regulatory considerations. Regulated industries may impose borrowing restrictions, for example.
Sufficient access. It's always good to have alternatives (lenders, rates etc), when it comes to borrowing.
Flexibility of borrowing options. i.e. active maturity management.

There are active and passive borrowing strategies.

You need to log in first to add your comment.

I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.

No flashcard found. Add a private flashcard for the subject.