Musings on Markets

MAY 7, 2023

I also used the banking framework to argue that good banks have stickier deposits, with a higher precent of these deposits being non-interest bearing, that they invest in loans and investment securities on which they earn interest rates that cover and exceed the default risk in these investments. All Equity, All the time!

Banking 64

Banking Price to Book Dividends Book Value 64

Global Finance

JULY 23, 2024

The plan by the Big Three banks to unwind their cross-shareholdings points to a long-awaited turn to better corporate governance. As such, the big banks’ pledges suggest that Japanese business is taking the need for change seriously, Wu says. The announcements in June by Japan’s three megabanks that they will sell $5.4

Price to Book 111

Price to Book Banking Dividends Equity 111

Musings on Markets

JANUARY 27, 2022

While we have increasingly given central banks primacy in discussions of interest rates, it remains my view that markets set rates, and while central banks can nudge market expectations, they cannot alter them. Connecting this linkage to the discussion of US inflation in the prior sections, here are the takeaways.

Risk-free Rate 87

Risk-free Rate Treasury Price to Book Start-ups 87

Musings on Markets

JULY 17, 2023

That does not surprise me, since I have never bought into the “Fed did it” theme, and have written multiple posts about why it is inflation and economic growth that drive interest rates, not central banks. Financials, handicapped by the bank runs at SVB and First Republic, have been flat for the year, as has been real estate.

Marketability 96

Marketability Risk Premium Start-ups Treasury 96

Musings on Markets

DECEMBER 10, 2023

In businesses like banking, consulting or the law, rainmakers can represent a significant portion of value, and their departure can be not just damaging but catastrophic. The value added by a superstar trader will be greater if he or she works at a ten-person trading group than if they work at a large investment bank.

Key Person Discount 116

Key Person Discount Start-ups Price to Book Marketability 116

Musings on Markets

MARCH 19, 2022

Slicing the data based on sector yields the following: Against, there are no surprises, with energy being the only sector to post positive returns and with consumer discretionary and technology generating the most negative returns.

Start-ups 100

Start-ups Risk Premium Equity Market Capitalization 100

Musings on Markets

MARCH 25, 2021

The second and more powerful factor is that the reason that a central bank is able to signal to markets, only if it has credibility, since the signal is more about what the Fed sees, using data that only it might have, about inflation and real growth in the future.

Equity 52

Equity Risk-free Rate Treasury Start-ups 52