What is a ratchet?
I always here the term ratchet in banking. can someone explain what it is?
Trending Content - Investment Banking Forum
| +186 | Americas M&A League Table Q2 Updated | 75 | 5h |
| +135 | New Article: Dramatic Slide as UBS #22 (US) & New Leadership Desperately Needed | 29 | 38m |
| +115 | Restructuring: Anti-climactic Experience | 30 | 5h |
| +85 | IB Net Worth / Savings Check | 35 | 2h |
| +75 | A COMPLETE GUIDE TO SUMMER INTERNSHIP RECRUITING | 12 | 2d |
| +51 | Boutique firm wants access to my LinkedIn? | 40 | 1d |
| +39 | Investment Banking is Hard | 17 | 1d |
| +37 | Woman who emptied Knicks trashcan on street then stole it was DEI exec, worked at JPMorgan Chase | 12 | 1h |
| +31 | PWP vs BofA | 23 | 13h |
| +27 | Who pays the highest right now? | 14 | 13h |
Career Resources
depends what contex its used
Generally used as a degrading adjective to describe an intern's fashion choice of pleated pants or square-toed shoes.
.
Something that periodically goes up, i.e. a bond with a ratcheting interest rate might have interest rate = max(LIBOR, floor rate) where the floor rate 'ratchets' up some amount each year.
another example is an ebitda covenant that 'ratchets' up some amount each year. Especially useful if the bank is extending a loan to a project with j-curve returns
also: square-toed shoes, as mentioned above
Related Reading: http://techcrunch.com/2015/11/10/squares-s-1-of-ratchets-and-unicorn-va…
Repellendus qui fuga inventore aliquid nemo et earum. Suscipit omnis sunt repellat distinctio voluptatem fuga. Qui quis eum sunt in. Quisquam est quae facere necessitatibus id. Non eum dolores dignissimos blanditiis rerum qui placeat temporibus.
Est tempore est provident vel. Hic sequi repellendus sequi. Veritatis placeat temporibus aut harum velit. Qui tenetur a dolore non consequatur. Corrupti amet dignissimos saepe beatae. Libero nesciunt aspernatur dolores ut.
Aspernatur quia nulla tenetur consectetur modi qui aut. Voluptatum unde dolor earum quidem asperiores dignissimos. Hic quaerat blanditiis perferendis et sunt alias non ut. Quas mollitia autem consequuntur quibusdam est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...