Musings on Markets

AUGUST 5, 2023

If you have been reading my posts, you know that I have an obsession with equity risk premiums, which I believe lie at the center of almost every substantive debate in markets and investing. The risk premium that you demand has different names in different markets.

Risk Premium 98

Risk Premium Equity Start-ups Treasury 98

Musings on Markets

JANUARY 8, 2022

To start the year, I returned to a ritual that I have practiced for thirty years, and that is to take a look at not just market changes over the last year, but also to get measures of the financial standing and practices of companies around the world. Happy New Year, and I hope that 2022 brings you good tidings!

Risk Premium 99

Risk Premium Start-ups Market Capitalization Corporate Finance 99

Musings on Markets

DECEMBER 15, 2021

During my teaching lifetime, I have taught a wide swath of classes, ranging from banking to equity instruments, but in the last twenty years, my focus has been on three classes, c orporate finance, valuation and investment philosophies , with the last one taught only online. The place to start is with accounting. am - 11.50

Corporate Finance 83

Corporate Finance Finance Start-ups Technology 83

Reynolds Holding

JUNE 16, 2024

equity market. Indeed, decisions made by investors, institutions, and the corporations that they invest in can accelerate the growth of certain institutions relative to others. Institutions may exhibit differential growth in ownership due to the difference in return on the assets under management relative to the market return.

Dividends 45

Dividends Covariance Equity Finance 45

Reynolds Holding

DECEMBER 10, 2023

As a capital allocation decision, share buybacks intersect all three of the main corporate finance activities of investing, financing, and dividends [1]. For many mid and large cap companies in the UK and EU, share buybacks are implemented using Open Market Repurchases (OMRs) [9].

Dividends 45

Dividends Total Shareholder Return Corporate Finance Finance 45

Musings on Markets

JANUARY 12, 2021

Corporate Finance : Corporate finance is the development of the first financial principles that govern how to run a business. It is that mission that makes corporate finance the ultimate big picture class, one that everyone (entrepreneurs, investors, analysts, business observers) should take.

Corporate Finance 52

Corporate Finance Start-ups Finance Marketability 52

Global Finance

SEPTEMBER 9, 2024

Corporates are hoarding cash, and that has meant a return to dividends and distributions but also more conservative cash management. HSF partner Gabrielle Wong echoes Lang’s view on the need for greater collaboration, noting a growing willingness by treasurers to invest time and money to access the market.

Treasury 105

Treasury Banking Finance Dividends 105

Musings on Markets

JANUARY 6, 2023

Counter made-up numbers : It remains true that people (analysts, market experts, politicians) often make assertions based upon either incomplete or flawed data, or no data at all. Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Musings on Markets

FEBRUARY 8, 2022

In the first few weeks of 2022, we have had repeated reminders from the market that risk never goes away for good, even in the most buoyant markets, and that when it returns, investors still seem to be surprised that it is there.

Risk Premium 95

Risk Premium Beta Start-ups Equity 95

Musings on Markets

NOVEMBER 4, 2022

Investors, used to a decade of better-than-expected earnings and rising stock prices at these companies, have been blindsided by unexpected bad news in earnings reports, and have knocked down the market capitalization of these companies by hundreds of billions of dollars in the last few weeks.

Start-ups 106

Start-ups Market Capitalization Marketability Dividends 106

Musings on Markets

JANUARY 31, 2024

Your answer to that question will determine not just how you approach running the business, but also the details of how you pick investments, choose a financing mix and decide how much to return to shareholders, as dividend or buybacks.

Equity 81

Equity Book Value Start-ups Corporate Finance 81

Brian DeChesare

AUGUST 10, 2022

Oil & Gas Investment Banking Definition: In oil & gas investment banking, professionals advise companies that search for, produce, store, transport, refine, and market energy on raising debt and equity and completing mergers and acquisitions. Also, there are few “independent” Downstream companies in major markets like the U.S.,

Banking 98

Banking EBITDA Dividends Equity 98

Reynolds Holding

OCTOBER 10, 2022

trillion to buy back their shares, which is significantly more than these firms spent on dividend payments to their shareholders (Lazonick, Sakinç, and Hopkins, 2020). Bendig, Willmann, Strese, and Brettel (2018) show that stock repurchases are associated with cuts in marketing costs and more product recalls. REFERENCES. Willmann, D.,

Finance 56

Finance Marketability Dividends Corporate Finance 56

Musings on Markets

FEBRUARY 27, 2022

That said, about 31% of the net profits of all publicly traded firms listed globally in 2021 were generated by financial service firms; that percent is lower in the US and higher in emerging markets. IFRS and GAAP now treat as leases as debt, but that is still not the case in many other markets that are not covered by either standard).

Start-ups 99

Start-ups Equity Book Value Marketability 99

Brian DeChesare

AUGUST 31, 2022

Convertible Arbitrage Definition: Convertible arbitrage is a relative value strategy in which a hedge fund profits based on the pricing discrepancy between a company’s convertible bonds and its underlying stock; the fund exploits changes in volatility, credit quality, and interest rates to make money while minimizing overall market risk.

Banking 89

Banking Risk-free Rate Equity Start-ups 89

Reynolds Holding

NOVEMBER 30, 2023

On November 21, 2023, the staff of the Securities and Exchange Commission’s (SEC’s) Division of Corporation Finance issued eight new Compliance & Disclosure Interpretations (C&DIs), and revised two previously issued C&DIs, relating to the final pay-versus-performance (PVP) disclosure rules adopted last year. Answer: Yes.

Compliance 40

Compliance Total Shareholder Return Dividends Market Capitalization 40

Brian DeChesare

JUNE 1, 2022

Traditionally, the sector was viewed as a defensive play for investors who wanted stable dividends and no drama. But over time, trends like market liberalization, deregulation, the shift to renewables, and the ESG religion “movement” have shaken up a sleepy sector. Is the Power & Utilities Investment Banking Group Right for You?

Banking 98

Banking Equity Book Value Capital Structure 98

Valutico

APRIL 17, 2023

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. This model takes into account a variety of factors, such as risk-free rate, beta, and expected market returns. A beta of 1.0 A beta of 1.0

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 17, 2023

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. This model takes into account a variety of factors, such as risk-free rate, beta, and expected market returns. A beta of 1.0 A beta of 1.0

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 12, 2023

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. This model takes into account a variety of factors, such as risk-free rate, beta, and expected market returns. A beta of 1.0 A beta of 1.0

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Musings on Markets

JANUARY 9, 2021

I spent the first week of 2021 in the same way that I have spent the first week of every year since 1995, collecting data on publicly traded companies and analyzing how they navigated the cross currents of the prior year, both in operating and market value terms.

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 52

Brian DeChesare

SEPTEMBER 11, 2024

Finally, many renewable energy debt deals take place within Project Finance teams at banks – but Project Finance and corporate finance are very different ! Since equity deals are highly dependent on market conditions, deal flow tends to be much more uneven than in asset-level M&A.

Banking 59

Banking Finance Start-ups Equity 59

Brian DeChesare

APRIL 24, 2024

Energy Consulting to Asset Management: Consulting is closer to finance than engineering, but a pre-MBA internship would still be useful because AM firms recruit relatively few MBAs and normally want people with finance experience. below the normal “ middle-market private equity ” cut-off).

Start-ups 59

Start-ups Banking Finance Equity 59

Reynolds Holding

MARCH 5, 2023

The staff of the Securities and Exchange Commission’s (SEC’s) Division of Corporate Finance recently issued guidance to address open questions related to the final pay-versus-performance (PVP) disclosure rules adopted in 2022. However, it is not clear whether or how this informal guidance from 2014 applies to the PVP rules.

Equity 45

Equity Dividends Total Shareholder Return Corporate Finance 45

Harvard Corporate Governance

AUGUST 5, 2022

Share Repurchases on Trial: Large-Sample Evidence on Market Outcomes, Executive Compensation, and Corporate Finances. Tags: Capital allocation , Dividends , Executive Compensation , Firm performance , Incentives , Repurchases , Shareholder value. Posted by Nicholas Guest (Cornell University), S.P.

Capital Structure 214

Capital Structure Dividends Corporate Finance Technology 214

Musings on Markets

JANUARY 28, 2024

In my last data updates for this year, I looked first at how equity markets rebounded in 2023 , driven by a stronger-than-expected economy and inflation coming down, and then at how interest rates mirrored this rebound.

Risk Premium 122

Risk Premium Beta Start-ups Equity 122

Musings on Markets

MAY 11, 2021

The Taxation of Investment Income In much of the world, income from investments (interest, dividends) is treated differently than earned income (salary, wages), by the tax code, and the reasons for the divergence are both practical and political: 1.

Dividends 52

Dividends Start-ups Risk Premium Treasury 52

Global Finance

MARCH 7, 2025

The oil giant cut its dividend to balance shareholder payouts with rising capital investments amid lower crude prices and evolving market conditions. Saudi Arabian Oil, better known as Aramco, is recalibrating its dividend strategy as it navigates weaker oil prices and rising capital investment demands. billion from $121.3

Dividends 95

Dividends Finance Marketability Corporate Finance 95

Musings on Markets

JANUARY 10, 2025

In corporate finance and investing, which are areas that I work in, I find myself doing double takes as I listen to politicians, market experts and economists making statements about company and market behavior that are fairy tales, and data is often my weapon for discerning the truth.

Risk Premium 120

Risk Premium Dividends Start-ups Corporate Finance 120

Musings on Markets

MARCH 5, 2025

I also look at a clear and discernible shift away from dividends to stock buybacks, especially in the US, and examine both good and bad reasons for this shift. Some of that cash will be held back in the company as a cash balance, but the balance can be returned either as dividends or in buybacks.

Dividends 52

Dividends Start-ups Equity Corporate Finance 52

Musings on Markets

FEBRUARY 8, 2025

In the first five posts, I have looked at the macro numbers that drive global markets, from interest rates to risk premiums, but it is not my preferred habitat. A few years ago, I wrote a paper for practitioners on the cost of capital , where I described the cost of capital as the Swiss Army knife of finance, because of its many uses.

Risk Premium 73

Risk Premium Beta Start-ups Equity 73

Global Finance

APRIL 5, 2025

The global mergers and acquistions (M&A) market might not have fulfilled every dealmakers fantasy of a roaring comeback in 2024. The listed bond market is one place where RMB dominates, having arranged $1.9 The majority were in sustainable finance, where the bank has committed to facilitate $10.9 billion (about $4.7

Banking 52

Banking Finance Dividends Equity 52

Reynolds Holding

DECEMBER 22, 2024

Moreover, the success of the Google IPO in 2004 provided market validation for the entrepreneurs use of dual class common stock as a way of retaining control while retaining considerably less than 50 percent of the cash flow rights of the public company. The dividend payout did not maximize Sinvens value as a public company.

Dividends 45

Dividends Compliance Marketability Firm-specific Risk 45