The Sky Is Falling Equities Investing Markets by Matt - December 18, 2018February 18, 20190 The stock market has fallen a lot and people are worried about all of the news items that have been popping up. Is the 9 year bull market over? The news items are scary - here are a few to summarize in case you get asked why markets are falling for
Accessing Leveraged Capital Markets – Part II Debt Capital Markets Leveraged Finance Rating Agencies by Matt - December 17, 20180 Getting a Credit Rating for High Yield Bonds When debt issuers want to issue debt in a public offering1, they will need credit ratings from the three major credit rating agencies: Moody's, S&P and Fitch Ratings. Generally, investors like to see at least two, with Moody's being the gold standard when it
Accessing Leveraged Capital Markets – Part I Debt Capital Markets Leveraged Finance by Matt - December 11, 20180 Issuing High Yield Bonds For levered companies that do not fit the investment grade bucket, there are still robust capital markets options available for debt issuance through the leveraged finance divisions of global investment banks. As discussed in other leveraged finance posts, a large suite of buyers invest in high yield bonds
Statistical Inference and Hypothesis Testing Statistics 101 by Karl - December 9, 2018December 31, 20180 Whenever we observe data, we are usually observing one or a few samples from a much larger population. For example, if we are looking at daily stock market returns for AAPL for last year, we are looking at only a small portion of the overall daily returns. More often than
Interview With A Mergers & Acquisitions Investment Banker – Part II Interview Series Mergers & Acquisitions by Karl - December 9, 2018December 9, 20180 What sector is interesting right now? Oil and gas. Despite the current oil price environment (which is very bad), you are actually seeing a fair bit of consolidation in the space because of the efficiencies of scale in the space. The oil prices are low and there is a lot of uncertainty right
Interview with a Mergers & Acquisitions Investment Banker – Part I Interview Series Mergers & Acquisitions by Karl - December 9, 2018December 9, 20180 Why does everyone want to do M&A? M&A is probably the most flexible group in terms of exit opportunities and gives you the broadest and most technical experience. You will get the most modelling experience in M&A, but I would caveat that it is not as interesting as people seem to think
Common Investment Banking Behavioral Question Pitfalls Investment Banking Fit Questions by Matt - December 8, 2018December 8, 20180 We have tutored a lot of students for investment banking interview prep and some common mistakes have emerged. Fortunately, there are easy fixes for all of these mishaps. Why do you want to do investment banking? What do investment bankers do? How does the investment bank make money? Where do
Preferred Shares Primer Equity Capital Markets by Matt - December 6, 20180 When investment bankers look at quick and dirty enterprise value calculations, they generally think: EV = Net Debt (Debt - Cash) + Equity In corporate finance theory, enterprise value includes all levels of the capital stack including preferred shares ('prefs"). Preferred shares are securities that are senior to common equity and generally pay
How to Answer the “What Are Three Strengths and Weaknesses” Question Investment Banking Fit Questions by Matt - December 3, 2018December 3, 20180 We are posting another behavioral interview question set because this is where most of our readers strike out on their interviews. We would think that most readers that stumble upon our website are fairly diligent and are looking to advance their careers - so mastering the technical interview questions is
Multivariate Regression and Interpreting Regression Results Statistics 101 by Karl - December 3, 2018December 31, 20180 Simple linear regression (univariate regression) is an important tool for understanding relationships between quantitative data, but it has its limitations. One obvious deficiency is the constraint of one independent variable, limiting models to one factor, such as the effect of the systematic risk of a stock on its expected returns.