Musings on Markets

OCTOBER 4, 2023

We started the year with significant uncertainty about whether the surge in inflation seen in 2022 would persist as well as about whether the economy was headed into a recession. The NASDAQ also gave back gains in the third quarter, but is up 27.27% for the year, but those gaudy numbers obscure a sobering reality. billion.

Marketability 121

Marketability Start-ups Risk Premium Treasury 121

Musings on Markets

SEPTEMBER 27, 2022

In my early 2021 posts on inflation, I argued that while the higher inflation that we were just starting to see could be explained by COVID and supply chain issues, prudence on the part of policy makers required that it be taken as a long term threat and dealt with quickly. in the NY Fed survey. in the NY Fed survey.

Risk Premium 99

Risk Premium Treasury Start-ups Equity 99

Musings on Markets

JULY 17, 2023

At the start of the year, the consensus of market experts was that this would be a difficult year for markets, given the macro worries about inflation and an impending recession, and adding in the fear of the Fed raising rates to this mix made bullishness a rare commodity on Wall Street.

Marketability 98

Marketability Risk Premium Start-ups Treasury 98

Musings on Markets

JANUARY 27, 2022

Inflation: Measurement and Determinants As the inflation debate was heating up in the middle of last year, I wrote a comprehensive post on how inflation is measured, what causes it and how it affects returns on different asset classes. Rather than repeat much of that post, let me summarize my key points.

Risk-free Rate 99

Risk-free Rate Treasury Price to Book Start-ups 99

Brian DeChesare

JANUARY 4, 2023

Just look at the handy chart the Financial Times put together to see the horrifically bad numbers: In January 2022, everything seemed quite frothy, with mega-deals happening left and right and crypto and equity prices still at high levels. Treasuries: 19% [Up 19%]. Real Estate (Equity Funds + Owned Properties): 15% [Up 5%].

Marketability 98

Marketability Start-ups Treasury Dividends 98

Brian DeChesare

FEBRUARY 22, 2023

Sell-Side Definition: In the finance industry, “buy-side firms” raise money from institutions and wealthy individuals and invest on their behalf, profiting from management fees, performance fees, or both; “sell-side firms” earn money from commissions charged to facilitate deals and to sell, market, and trade equity, debt, and other securities.

Finance 130

Finance Marketability Banking Corporate Finance 130

Musings on Markets

SEPTEMBER 20, 2024

The place to start to dispel the “Fed sets rates” myth is with an understanding of the Fed Funds rate, an overnight intra-bank borrowing rate is one that most of us will never ever encounter in our lives.

Banking 124

Banking Treasury Start-ups Marketability 124

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. While stocks had their ups and downs during the year, they ended the year strong, and recouped, at least in the aggregate, most of the losses from 2022. increase in market capitalization.

Risk Premium 79

Risk Premium Start-ups Equity Treasury 79

Brian DeChesare

JUNE 15, 2022

If you look online, you’ll find many threads, articles, and blog posts saying that back office (BO) and middle office (MO) jobs are “the worst” and that if you end up there, your career is over. First, note that these terms apply only to investment banks and related finance firms (private equity firms, hedge funds, etc.).

Banking 98

Banking Treasury Start-ups Finance 98

Brian DeChesare

MARCH 13, 2023

Banks’ lending activities are constrained by: Regulatory Capital – All banks must maintain a certain amount of common shareholders’ equity to absorb unexpected losses on loans and other assets. These are marked to market value and do affect the bank’s common equity and regulatory capital ratios, such as its CET 1 Ratio.

Banking 123

Banking Start-ups Equity Treasury 123

Musings on Markets

MARCH 25, 2021

The first quarter of 2021 has been, for the most part, a good time for equity markets, but there have been surprises. The first has been the steep rise in treasury rates in the last twelve weeks, as investors reassess expected economic growth over the rest of the year and worry about inflation. for 2021 and inflation of 2.2%

Equity 52

Equity Risk-free Rate Treasury Start-ups 52

Brian DeChesare

FEBRUARY 28, 2024

While everyone seems to know about equity research and trading stocks, fixed income research gets far less attention. Equity Research vs. Fixed Income Research Common Myths What Do You Do as a Fixed Income Research Analyst or Associate? Each role has common analytical elements, but the specifics and deliverables differ (e.g.,

Equity 59

Equity Banking Start-ups Finance 59

Musings on Markets

MAY 5, 2023

The Bank Regulators If you are wondering where bank regulators enter the business model, it is worth remembering that banks predate regulators, and for centuries, were self regulated, i.e., were responsible for ensuring that they had enough equity capital to cover unexpected losses.

Banking 98

Banking Equity Start-ups Treasury 98

Musings on Markets

JANUARY 24, 2024

In my last post, I looked at equities in 2023, and argued that while they did well during 2023, the bounce back were uneven, with a few big winning companies and sectors, and a significant number of companies not partaking in the recovery.

Treasury 52

Treasury Risk Premium Start-ups Risk-free Rate 52

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 1, 2022

To put risk capital in perspective, it is best to start with a definition of risk that is comprehensive and all-inclusive, and that is to think of risk as a combination of danger (downside) and opportunity (upside) and to consider how investments vary in terms of exposure to both. Risk Capital: What is it?

Marketability 99

Marketability Risk Premium Start-ups Equity 99

Brian DeChesare

JANUARY 3, 2024

My portfolio did “OK” (up 10% for the year), but it greatly underperformed the S&P 500 , which was up 24%. With better decisions, I could have been up 15 – 20% for the year and slightly above my levels from 2 years ago. Gold did well (up around 13%), but I had 10% or less in it the whole time.

Marketability 59

Marketability Start-ups Equity Dividends 59

Brian DeChesare

NOVEMBER 9, 2022

People usually start this discussion by comparing S&T exits to investment banking exit opportunities and saying that S&T exit options are “worse.”. Traditional investment banking exit opportunities such as private equity , venture capital , and corporate development are highly unlikely , with a few exceptions for certain desks.

Banking 93

Banking Equity Start-ups Marketability 93

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] 6] The $55 trillion U.S.

Equity 45

Equity Marketability Start-ups Treasury 45

Simply Treasury

NOVEMBER 2, 2020

How to best choose your IT treasury solution in a complex and competitive environment? The strategic and key role of treasury teams has increased steadily over last decade. At treasury level, the central technology is the calculation and processing power of Treasury Management Systems (i.e. Tech dependency of Treasury.

Treasury 52

Treasury Technology Start-ups Finance 52

Value Scope

JANUARY 13, 2021

This is often when litigation picks up. Oil and gas production is a supply chain that ends up in a place where the commodity is changed into something that is useful, like fuel, rubber, or natural gas that is dry and safe to burn in a power plant. Click to Download: Update on Oil & Gas Royalties Litigation-Key Valuation Issue s.

Fair Market Value 130

Fair Market Value Discounted Cash Flow Treasury Marketability 130

Brian DeChesare

SEPTEMBER 14, 2022

The commonality is that they can be useful side doors into the finance industry, especially if you got started late , earned lower grades , or did not complete enough internships : What is a “Credit Analyst”? Normal Company: It’s most common to move around to other areas in corporate finance, such as FP&A, Accounting, or Treasury.

Finance 95

Finance Banking Corporate Finance Start-ups 95

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.

Risk Premium 52

Risk Premium Risk-free Rate Equity Dividends 52

Chris Mercer

MAY 19, 2023

Was it just the long-term Treasury Securities that everyone has talked about. The bank was “profitable” and attractive for those eight years, up to the time that they announced underlying asset quality problems. Assuming they started with $100 million in total assets, that represented an 18% CAGR over the period.

Banking 98

Banking Treasury Start-ups Marketability 98

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

Value Scope

JANUARY 13, 2021

This is often when litigation picks up. Oil and gas production is a supply chain that ends up in a place where the commodity is changed into something that is useful, like fuel, rubber, or natural gas that is dry and safe to burn in a power plant. Fair Value” is the US GAAP application standard. It is a price-taker business.

Fair Market Value 100

Fair Market Value Discounted Cash Flow Treasury Marketability 100

Musings on Markets

FEBRUARY 15, 2023

As I have argued in all four of my posts, so far, about 2022, it was year when we saw a return to normalcy on many fronts, as treasury rates reverted back to pre-2008 levels, and risk capital discovered that risk has a downside.

Start-ups 52

Start-ups Equity Risk Premium Risk-free Rate 52

IT Valuations

DECEMBER 21, 2021

Most of us business owners did not go to school to start a business. Rather, we followed our interests and our passions, and then only later did we end up starting our own companies. Now is the time to finally get a handle on understanding your company’s financials and accounting. Listen, I get it.

Corporate Finance 40

Corporate Finance Start-ups Business Valuation Finance 40

Reynolds Holding

NOVEMBER 14, 2024

Treasury Markets Let me start with the base of our capital markets, the $28 trillion U.S. Treasury markets. [13] 15] As these clearing rules get implemented over the next year and a half, your clients may look to you on how best to participate in Treasury markets that better promote all-to-all trading and competition.

Treasury 45

Treasury Marketability Equity Start-ups 45

Reynolds Holding

MAY 9, 2022

The retail public started to invest, in part thanks to that Uncle Sam advertising. When my dad was coming of age, the world started to turn to the U.S. A generation after my dad started his business, I had to make my own career decision: law school or Wall Street? 11] We also observed challenges in the Treasury market.

Marketability 45

Marketability Treasury Start-ups Banking 45

Reynolds Holding

APRIL 23, 2023

Despite increasing demands on SEC staff, we just were named the third-best place to work among midsized federal agencies, moving two spots up the list and building on being in the top five for the previous five years. [4] 9] I will take a moment to elaborate on our work regarding equity markets and private funds. [10]

Treasury 45

Treasury Marketability Finance Technology 45

Musings on Markets

JANUARY 27, 2021

In my last post , I described the wild ride that the price of risk took in 2020, with equity risk premiums and default spreads initially sky rocketing, as the virus led to global economic shutdowns, and then just as abruptly dropping back to pre-crisis levels over the course of the year.

Start-ups 52

Start-ups Marketability Equity Treasury 52

Reynolds Holding

SEPTEMBER 24, 2024

In the aftermath of the 1929 market crash and the frauds, scams, and other observed problems in the securities markets, President Franklin Roosevelt came together with Congress to enact a series of securities laws in the 1930s and set up the SEC. banking system add up to about $23 trillion. [2] 4] The U.S. exchanges. [16]

Treasury 45

Treasury Compliance Marketability Start-ups 45

Reynolds Holding

SEPTEMBER 12, 2023

8] I will take a moment to elaborate on our work in equity markets and private funds. Equity Markets With some 68 million American households investing in the equity markets , [9] these markets are critical to issuers and investors alike. Myriad markets and financial products are priced off of treasuries.

Banking 40

Banking Treasury Marketability Equity 40

IBG Business

JANUARY 9, 2023

In states that have not caught up, local professionals in business sales should consider activities to help their states effect changes to align with the new Section 501 requirements. earnouts, recapitalizations, retained equity/rollover, or. Practitioners must know the appropriate state requirements before relying on the exemption.

Treasury 52

Treasury Start-ups EBITDA Compliance 52

Reynolds Holding

MAY 23, 2023

The guaranty was originally for up to $2,500 per eligible account – an amount quickly raised to $5,000 or about $112,000 in today’s dollars – and subsequently raised six times over the years to the current $250,000 limit. The steady financialization of the U.S. The steady financialization of the U.S.

Banking 40

Banking Equity Start-ups Treasury 40

Reynolds Holding

APRIL 4, 2022

Seeing these ads reminded me that, in the lead-up to the financial crisis, subprime lender AmeriQuest advertised in the Super Bowl. As in other start-up fields, many projects likely could fail. ATSs for the equity and fixed income markets, though, are generally used by institutional investors. It went defunct in 2007.

Marketability 65

Marketability Start-ups Banking Compliance 65