spread, loan, credit,

Discussion in 'Financial Terms' started by RAUL AGUILAR, Jul 21, 2006.

  1. RAUL AGUILAR New Member

    México-Español
    Hi.

    This is Raúl, I would like to know diferent ways where this words are used.

    Regards from Mexico
     
  2. Fernando Senior Member

    Madrid
    Spain, Spanish
    Raúl, there are (literally) dozens of ways in which these words are used. If you do not specify, it is difficult to say you nothing.

    Please, check the dictionary and then post your doubts.
     
  3. RAUL AGUILAR New Member

    México-Español
    Thanks Fernando for your opinion.

    In fact, those words are established in finantial terms, in specific legal contracts.

    Regards.

    Note: if you note some mistakes please let me know
     
  4. jcmunoz21 New Member

    US: English
    Raul: I was actually trying to learn how to use the word "spread" in spanish. If anybody knows, please respond. I'm a banker in the US and I make loans and give credit to businesses/corporations. Pequeña y mediana empresas. I think you call them PYMEs. Businesses need credit as a means to obtain capital for investment in corporate assets and fund operations. I make loans and then sell them to other larger banking institutions. I charge specific rates on my loans. You use an index such as Wall Street Journal Prime Rate and then charge a "spread" on top of that. Today, WSJP is 8.25%. If I charge a 2 point spread, the borrower's rate is 10.25%. Then I sell the entire loan to another bank who pays me a premium for what they consider a performing asset. The borrower will pay them and I act as a broker/middleman. Hope this talk helped.
     
  5. Fernando Senior Member

    Madrid
    Spain, Spanish
    The most usual way is "diferencial", at least in Spain. You can also use "margen".

    If you are offering to small companies loans with a spread of 2 percentage points over WSJP you can say:

    Ofrezco préstamos a PYMES a un tipo / tasa de WSPJ+2%

    or

    Ofrezco préstamos a PYMES al WSPJ+2%

    Ofrezco préstamos a PYMES al WSPJ más un diferencial/margen del 2%.
     

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