NextCard was a credit card issuer seeking to exploit the growing e-commerce market in the United States. It was founded in 1996, saw a successful initial public offering in 1999, and became an affiliate of Amazon.com, the largest online retailer. The year 2000 was a year of growth for NextCard, with the number of accounts more than trebling, to nearly three quarters of a million. However, on October 31, 2001, NextCard was placed under "new regulatory .....more

The vice-president of Export Development Corporation is considering an innovative derivative product, Protected Index Notes (PINS) to raise funds. This case introduces students to a major class of financial institutions, export development corporations, that facilitate international trade. As well, this case illustrates the use of SWAP technology to create sub-London Interbank Offered Rate funding with an equity derivative, a note with interest tied .....more