What are off balance sheets?
What are off balance sheets? Off-balance sheet transactions are assets or liabilities that are not booked on the balance sheet, but deferred or contingent. They allow a party to have the benefit of an asset while transferring its liabilities to another party. What is meant by off balance sheet activity? Off-balance sheet (OBS), or incognito leverage, usually means an asset or debt or financing activity not on the company's balance sheet. Total return swaps are an example of an off-balance sheet item. Some companies may have significant amounts of off-balance sheet assets and liabilities. What is the difference between on...