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A Follow up on Inflation: The Disparate Effects on Company Values!

Musings on Markets

In general, higher and more volatile inflation has negative effects on all financial assets, from stocks to corporate bonds to treasury bonds, and neutral to positive effects on gold, collectibles and real assets. I then examine how equities have performed in the less than five months of 2022, where inflation has returned to the front pages.

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Sales & Trading Exit Opportunities: The Top 10 Ways to Make Your Escape

Brian DeChesare

People usually start this discussion by comparing S&T exits to investment banking exit opportunities and saying that S&T exit options are “worse.”. Of all the hedge fund strategies , global macro is the best fit for most traders because: It matches up directly with popular desks like rates trading , FX, and commodities.

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Country Risk: A 2022 Mid-year Update!

Musings on Markets

It has been my practice for the last two decades to take a detailed look at how risk varies across countries, once at the start of the year and once mid-year. Country Risk: Currency and Cost of Capital As a final part to this post, to see the shifts in country risk that we have seen in 2022, let’s start with an assessment of risk free rates.

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Data Update 1 for 2025: The Draw (and Danger) of Data

Musings on Markets

It is the end of the first full week in 2025, and my data update for the year is now up and running, and I plan to use this post to describe my data sample, my processes for computing industry statistics and the links to finding them. Beta & Risk 1. Return on Equity 1. Debt Ratios & Fundamentals 1. Debt Details 1. Buybacks 2.

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Data Update 6 for 2025: From Macro to Micro - The Hurdle Rate Question!

Musings on Markets

In business financing decisions , the cost of capital becomes an optimizing tool , where businesses look for a mix of debt and equity that reduces the cost of capital , and where matching up the debt (in terms of currency and maturity) to the assets r educes default risk and the cost of capital. Corporate Default Risk , i.e,