Musings on Markets

JANUARY 17, 2024

Heading into 2023, US equities looked like they were heading into a sea of troubles, with inflation out of control and a recession on the horizon. Breaking equities down by sub-region, and looking across the globe, I computed the change in aggregate market capitalization, by region: While US stocks accounted for about $9.5

Risk Premium 79

Risk Premium Start-ups Equity Treasury 79

Musings on Markets

MAY 20, 2022

In my last post , I discussed how inflation's return has changed the calculus for investors, looking at how inflation affects returns on different asset classes, and tracing out the consequences for equity values, in the aggregate.

Price to Book 102

Price to Book Dividends Beta Equity 102

Musings on Markets

JULY 17, 2023

In my second data update post from the start of this year , I looked at US equities in 2022, with the S&P 500 down almost 20% during the year and the NASDAQ, overweighted in technology, feeling even more pain, down about a third, during the year. trillion below their values from the start of 2022.

Marketability 98

Marketability Risk Premium Start-ups Treasury 98

Reynolds Holding

JANUARY 4, 2023

On December 27, 2022, Treasury released Notices 2023-7 and 2023-2 (the “Notices”). The Notices are intended to provide interim guidance until proposed Treasury Regulations are promulgated. The Treasury and IRS have requested further comments on this issue. 1] The CAMT and the Buyback Tax both are effective January 1, 2023.

Treasury 45

Treasury Dividends Marketability Finance 45

Brian DeChesare

JANUARY 3, 2024

and far too little in equities. When the markets rallied after the initial COVID sell-off in March 2020, I put more cash into equities and real estate. Treasuries. And I reallocated these proceeds into crypto and equities and put in some excess cash. But my real estate investment funds were down ~10% , which hurt.

Marketability 59

Marketability Start-ups Equity Dividends 59

Reynolds Holding

SEPTEMBER 29, 2024

The Treasury Department and the IRS have released long-awaited proposed regulations (the “Proposed Regulations”) on the 15% corporate minimum tax on the book income of certain large corporations (the “CAMT”), more than two years after the CAMT was created as part of the Inflation Reduction Act. [1]

Treasury 45

Treasury Dividends Start-ups Fair Market Value 45

Musings on Markets

JANUARY 20, 2021

With equities, the metric that has been in use the longest is the PE ratio, modified in recent years to the CAPE, where earnings are normalized (by averaging over time) and sometimes adjusted for inflation. Estimation Approaches Why is it so difficult to estimate an equity risk premium?

Risk Premium 52

Risk Premium Risk-free Rate Equity Dividends 52

ThomsonReuters

JULY 13, 2021

The Tax Equity and Fiscal Responsibility Act of 1982 and Interest and Dividend Compliance Act of 1983 requires payers to backup withhold tax from certain reportable payments. This 24% is taken from any future payments to make sure the IRS receives the tax due on this income and is known as backup withholding (BWH).

Treasury 98

Treasury Dividends Compliance Equity 98

Andrew Stolz

NOVEMBER 21, 2021

The repurchase has helped to keep return on equity above its target of 10%. The item “Other” contains the treasury stock. It is deducted from equity when the company buys back its own shares. The company pays out dividends on a consistent basis. Dividend payout ratio is almost constant around 30%. Ratios – Toyota.

Dividends 52

Dividends EBIT Treasury Equity 52

Musings on Markets

JANUARY 8, 2022

Most of the variables that I report are micro variables, relating to company choices on investing, financing and dividend policies, or to data that may be needed to value these companies. I extend my equity risk premium approach to cover other countries, using sovereign default spreads as my starting point, at this link.

Risk Premium 99

Risk Premium Start-ups Market Capitalization Corporate Finance 99

Cooley M&A

JANUARY 19, 2023

1] On December 27, 2022, the Department of the Treasury (“Treasury”) and the IRS issued Notice 2023-2 (the “Notice”), providing interim guidance on the Excise Tax. SPAC stock issued in a private investment in public equity financing or in a deSPAC transaction) would reduce the Excise Tax under the “netting rule.”

Fair Market Value 52

Fair Market Value Marketability Treasury Dividends 52

Reynolds Holding

JUNE 20, 2024

smoothly shortened the settlement cycle for equities, corporate bonds, and municipal securities to one day after the transaction date (T+1). market structure, where Treasuries, options, and mutual funds already largely settle in one day. market structure, where Treasuries, options, and mutual funds already largely settle in one day.

Treasury 45

Treasury Start-ups Banking Equity 45

Benzinga

AUGUST 13, 2024

Service revenue Element's largely unlevered services revenue is the key pillar of its capital-light business model, which also improves the Company's return on equity profile. Element expanded adjusted pre-tax return on common equity by 140 basis points year-over-year to 19.6% Q2 2024 services revenue grew 10.8% in Q2 2024.

Dividends 45

Dividends Capital Structure Finance Treasury 45

Global Finance

MAY 8, 2024

rise in return on equity (ROE) to 14.2%; and gains in tier 1 equity capital and assets of 5% and 4%, respectively. This was primarily based on revenue growth, which registered a heady 30% rise, allowing the bank to distribute its highest full-year dividend since 2008. billion; a 2.3% billion after-tax profit versus $8.3

Banking 52

Banking Dividends Start-ups Finance 52

Musings on Markets

JANUARY 9, 2021

The second was that, starting mid-year in 2020, equity markets and the real economy moved in different directions, with the former rising on the expectations a post-virus future, and the latter languishing, as most of the world continued to operate with significant constraints.

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 52

Benzinga

APRIL 18, 2022

Return on average tangible common equity (1). . . They will also benefit from enhanced service offerings including expanded commercial loan and treasury management solutions.". "We The return on average tangible assets was 1.07%, compared to 1.30%, and the return on average tangible common equity was 10.31%, compared to 12.37%.

Banking 40

Banking Book Value Equity Intangible Assets 40

Global Finance

JULY 24, 2024

DBS is the first Asian bank to offer custody for five asset classes: equities, bonds, funds, securities tokens, and cryptocurrencies. Citi Brazil continues to streamline workflows, with improved prematching of equity trades in real time by automating manual touch points, thereby reducing risk and accelerating transaction processing.

Banking 52

Banking Marketability Technology Finance 52

Global Finance

JULY 24, 2024

DBS is the first Asian bank to offer custody for five asset classes: equities, bonds, funds, securities tokens, and cryptocurrencies. Citi Brazil continues to streamline workflows, with improved prematching of equity trades in real time by automating manual touch points, thereby reducing risk and accelerating transaction processing.

Banking 52

Banking Marketability Technology Finance 52

Reynolds Holding

APRIL 11, 2022

If adopted, such rules would significantly impact many of the common practices that companies and their insiders have come to rely on to manage equity award programs and to conduct share repurchases and personal trading. Why should a company repurchase its shares? What is a “going private” transaction and what are its implications?

Banking 45

Banking Marketability Equity Compliance 45

Harvard Corporate Governance

OCTOBER 1, 2022

Wang (discussed on the Forum here ); and Share Repurchases, Equity Issuances, and the Optimal Design of Executive Pay by Jesse M. Department of the Treasury (“Treasury”) is directed to issue regulations that exempt certain repurchases by securities dealers. Fried and Charles C.Y. Fried (discussed on the Forum here ).

Treasury 235

Treasury Dividends Equity 235

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

Musings on Markets

JANUARY 17, 2025

In my last post , I noted that the US has extended its dominance of global equities in recent years, increasing its share of market capitalization from 42% in at the start of 2023 to 44% at the start of 2024 to 49% at the start of 2025.

Equity 126

Equity Risk Premium Treasury Start-ups 126

Musings on Markets

JANUARY 10, 2025

Thus, as you peruse my historical data on implied equity risk premiums or PE ratios for the S&P 500 over time, you may be tempted to compute averages and use them in your investment strategies, or use my industry averages for debt ratios and pricing multiples as the target for every company in the peer group, but you should hold back.

Risk Premium 115

Risk Premium Dividends Start-ups Corporate Finance 115

Musings on Markets

FEBRUARY 8, 2025

The Hurdle Rate - Intuition and Uses You don't need to complete a corporate finance or valuation class to encounter hurdle rates in practice, usually taking the form of costs of equity and capital, but taking a finance class both deepens the acquaintance and ruins it.

Risk Premium 72

Risk Premium Beta Start-ups Equity 72

Benzinga

OCTOBER 31, 2024

Further to the announcement on 7 October 2024, i3 Energy confirms that, the Scheme having become Effective, the Acquisition Dividend totalling £3,084,278 will be paid as follows: Dividend : 0.2565 pence / i3 Energy Share Record Date : 6.00

Dividends 45

Dividends Treasury Marketability Equity 45

Musings on Markets

MARCH 15, 2025

Thus, my estimates of equity risk premiums, updated every month, are not designed to make big statements about markets but more to get inputs I need to value companies. In the table below, I show my estimates of the implied equity risk premium for the S&P 500 at the start of every month, since January 2024, and on March 14, 2025.

Start-ups 128

Start-ups Risk Premium Marketability Equity 128