What is Yield? Yield (also called Yield To Maturity, or YTM) is the return investors receive for holding a bond. Yield takes account of both the interest/coupons investors get and the bond price relative to its par value. What are Treasuries? US Treasuries are debt instruments the US Department of the Treasury issues
Month: July 2018
Getting Fired as an Investment Banking Analyst
Fired from Investment Banking
"Oh did you hear about Vincent in equity derivatives? He was fired in October." But fired can be fairly ambiguous outside of knowing that someone has left the firm. At investment banks, fired usually means one of four things. No promotion/bad bonus Asked to leave/counselled out Termination without cause Termination with cause No
30 Minute Technical IB Interview Prep
Other Phenomena in the Investment Banking Jungle
This is a follow up to a previous intellectually lazy post Some Investment Banking Things. Lucites, Deal Toys and Tombstones When investment bankers close deals, they will set aside a budget to commission trophies commemorating the transaction. Usually, they will get glass toys with a theme that is loosely related to the
Trade Finance and Letters of Credit Overview
Introduction to Letters of Credit Since the inception of international trade, the need for risk minimization of the transaction for both buyer and seller has been paramount. Letters of credit have been used for a long time to accomplish that purpose by facilitating payments in the form of guarantee. As LCs
Valuation of Metals & Mining Companies Part III: Credit
Part I: Introduction Part II: Multiples Part III: Credit Mining credit is interesting because of the capital intensive and cyclical nature of the business and unpredictability of cash flows. Capital structures with high leverage are pretty common amongst players in the space. Since commodities as a whole are at the
Valuation of Metals & Mining Companies Part II: Multiples
Part I: Introduction Part II: Multiples Part III: Credit Once an appropriate price assumptions deck has been selected, analysts use a combination of these metrics to determine the value of a business. P/E (Price/Earnings) The price to earnings ratio looks at the price the investors are paying per share for each dollar
Valuation of Metals & Mining Companies Part I: Introduction
Part I: Introduction Part II: Multiples Part III: Credit Multiples analysis is a key component of valuation within Investment Banking and Equity Research as multiples are calculated based on actual market information and each multiple tells a different story about the state of a business. Analysts usually calculate a variety
