Illiquidity and Insolvency for Debtors Any entity that has debt can become illiquid or insolvent. Illiquid means that the debtor cannot service the debt at the time with liquid assets (which in accounting class generally means cash, accounts receivable and inventory - in decreasing order of liquidity), not because it does
Month: February 2019
Cloud Computing Primer
Cloud Computing Overview Cloud computing is the provision of internet services through the internet (the “cloud”). This includes databases, storage, software, and servers. Most businesses that use computers will eventually move to the cloud due to the advantages from a cost and flexibility perspective. As an example, instead of a server with a
Economic Calendar
Major Economic Data Releases Economists and analysts at major sell side and buy side institutions will prognosticate on where these numbers end up. Theoretically, current asset prices reflect these expectations. If numbers are better than expected, this will be a positive for affected assets and vice versa. Country specific data will lead
APV Method: Adjusted Present Value Analysis
Introduction to Hostile Takeovers and Unsolicited Bids
What is a Hostile Bid? Hostile takeovers happen when an acquiring entity looks to purchase a public company without the blessing of the Board of Directors or executive management. The would-be acquirer instead makes an offer for shareholders to tender their shares to them or starts a proxy fight to boot
Introduction to Capital Structure
Firms can choose to finance themselves with a number of securities: shares, bonds, preferred shares, convertible bonds, etc. These securities can be classified into two broad categories, debt and equity, and each comes with its own cost. Capital structure describes the way a firm finances itself. Data from Statistics Canada, 2009 Capital
Incurrence Covenants for High Yield Bonds
Senior Debt Covenants (Maintenance and Financial Covenants) and Protections A covenant is a vow - positive covenants or covenants of a positive nature (do not commit fraud, file your financial statements no later than 60 days after the end of a fiscal quarter) commit an obligor to do something. Negative covenants
Sale and Leaseback Transactions in Investment Banking
Offshore Wind Stocks
Here are some nice clean energy stocks for the environmentally inclined. Offshore Wind Developers Orsted (CPH: ORSTED) Orsted is the biggest stock in offshore wind. Orsted develops, constructs, operates and services offshore wind farms (98% of cash flows), and also has an onshore wind and biomass business. Orsted is one of the most
Offshore Wind Investing
Investing in Offshore Wind Offshore wind hits multiple major investment themes. For one, any serious offshore wind company is an excellent investment choice for both retail investors who care about the environment and are looking for zero-carbon investment solutions and institutional investors who have to meet their ESG mandates. This applies for both