You are the Chief Finance Officer of a major shipping company, Abacus Shipping, which is quoted on the New York Stock Exchange. Shipping is known for being a very cyclical industry, moving from a depression, through to recovery, then up to a peak, and then back down into recession. During recession, asset values are very low and undervalued; in contrast at the peak, asset values are overpriced and inflated. The company's Chief Executive Officer has asked you to prepare a report in which you discuss the types of loan which Abacus should request from its bank in the following scenarios

1）Abacus is trading its vessels during a period of gradual market recovery. Revenues are presently low but are expected to increase considerably during the short term as the market recovers.