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

MAY 5, 2023

The overarching questions for us all are whether this crisis will spread to the rest of the economy and market, as it did in 2008, and how banking as a business, at least in the US, will be reshaped by this crisis, and while I am more a dabbler than an expert in banking, I am going to try answering those questions.

Banking 99

Banking Equity Start-ups Treasury 99

Musings on Markets

JANUARY 8, 2022

Regional Breakdown My data sample for 2022 includes every publicly traded firm that is traded anywhere in the world, with a market capitalization that exceeds zero. For debt markets, it takes the form of default spreads, and I report the latest estimates of these corporate bond spreads at this link.

Risk Premium 99

Risk Premium Start-ups Market Capitalization Corporate Finance 99

Reynolds Holding

JULY 10, 2022

In standard public equity securities, even the most naïve investor is protected, first, by the market price – you pay only for what you get – and, second, by the comfort that nothing else is required of an individual investor to realize the full value of the security. securities markets – not SPACs.

Treasury 99

Treasury Marketability Equity Market Capitalization 99

Reynolds Holding

OCTOBER 21, 2024

What GameStop put on display was how much has changed—in technology and business models—since 2005 when we last comprehensively updated our equity market rules. The markets have moved to overwhelmingly trade electronically, with transaction volume in listed equities tripling in the last 17 years. [3]

Equity 45

Equity Marketability Start-ups Treasury 45

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

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. The group’s market capitalization in 2023 was at a 17-year high, valuing the enterprise at around the same level in dollar terms as Goldman Sachs. billion; a 2.3% increase in fee income.

Banking 52

Banking Dividends Start-ups Finance 52

Reynolds Holding

APRIL 4, 2022

The SEC’s remit is overseeing the capital markets and our three-part mission: protecting investors, facilitating capital formation, and maintaining fair, orderly, and efficient markets. There’s no reason to treat the crypto market differently just because different technology is used.

Marketability 65

Marketability Start-ups Banking Compliance 65

Benzinga

NOVEMBER 13, 2023

equity interest in Marathon on an issued and outstanding basis; closing is expected to be completed on November 14, 2023 and is not contingent on closing of the Transaction. Through this Transaction, Valentine will be fully funded to production without additional debt, royalties, or shareholder equity.

Equity 40

Equity Treasury Market Capitalization Marketability 40

Reynolds Holding

NOVEMBER 28, 2022

According to NASDAQ’s Equity Regulatory Alert #2022-9, “when gatekeepers such as underwriters engage in misconduct or otherwise are derelict in their duties, confidence is diminished and investors suffer.” Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”); and. broker-dealers to the U.S.

Compliance 45

Compliance Marketability Banking Treasury 45

Musings on Markets

DECEMBER 2, 2020

Cost of Capital & Failure Risk : For the cost of capital, I will assume that Airbnb’s cost of capital will be 6.50%, close to the cost of capital of hotel companies, to start the valuation, but over time, it will rise to 7.23%, reflecting an expected increase in the treasury bond rate from current levels to 2% in 2031.

Start-ups 52

Start-ups Marketability Equity Market Capitalization 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 128

Equity Risk Premium Treasury Start-ups 128

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 120

Risk Premium Dividends Start-ups Corporate Finance 120

Musings on Markets

APRIL 7, 2025

Coming after a few days where the market seemed to have found its bearings (at least partially), it was clear from the initial reactions across the world that the breadth and the magnitude of the tariffs had caught most by surprise, and that a market markdown was coming.

52

52

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 73

Risk Premium Beta Start-ups Equity 73

Reynolds Holding

JULY 25, 2023

Addressing climate change risk can improve risk-adjusted returns for investors holding a diversified portfolio of equity and other investments. Treasury Secretary Yellin has publicly signaled formal U.S. provides individuals with motive to become sensitive to the potential trade-off of ESG concerns for stock market returns.

Equity 40

Equity Start-ups Marketability Systematic Risk 40

Musings on Markets

FEBRUARY 6, 2025

It is for this reason that I chose to compute returns differently, using the following constructs: I included all publicly traded stocks in each market, or at least those with a market capitalization available for them. I converted all of the market capitalizations into US dollars , just to make them comparable.

Risk Premium 68

Risk Premium Start-ups Enterprise Value Equity 68

Global Finance

APRIL 5, 2025

Following two years of sticky inflation, exorbitant interest rates, and geopolitical tensions, worldwide equity issuance volume surged to $741 billion in 2024. Global inflation eased and major central banks began to cut interest rates: encouraging developments for equity issuers and investors. Thats up 20% from the previous year.

Banking 52

Banking Equity Market Capitalization Marketability 52

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. The first is i nterest rates, across the maturity spectrum , since their gyrations will play out across the market.

Start-ups 131

Start-ups Risk Premium Marketability Equity 131