Tony Williams,  Loan Technologist

Determine overall yield on an asset without regard for risk after considering both income and expense items related to the asset.

 

• Weigh all factors that affect the ability to generate revenue. Categories can be at the portfolio, geographic region, industry, relationship, borrower, deal, facility, loan or othder levels

 

• Weign all factors that affect the expenses associated with the aquisition, maintenance and disposal of an asset. Some components that may be considered are capital requirements, funding costs, overhead and external costs.