Capital Structure

Finance 101

by Karl - February 17, 2019February 17, 20190

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. Capital structure can be represented

Incurrence Covenants for High Yield Bonds

by Matt - February 17, 2019February 17, 20190

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

by Matt - February 16, 2019February 17, 20190

When people think of a sale and leaseback transaction, they think about a company that owns some real estate or equipment and then agrees to sell it to a buyer and continues to use the asset sold by leasing it back. Very simple. And because of the simplicity of this arrangement, this

Stock Pitch: Long Canada Goose (TSE:GOOS)

by Karl - February 10, 2019February 17, 20190

This stock pitch is intended to be a resource for interview preparation, it should not be interpreted as investment advice. I recommend a long position on Canada Goose. Currently trading at $74.56, I believe it is undervalued as investors overreacted on Huawei news and the subsequent breakdown of Canada China relations.

Preparing for Your First Client Meeting As An Investment Banking Analyst

Career

by Matt - February 3, 20190

E. Jimmy Smith, HBA '20 His palms are sweaty, knees weak, arms are heavy There's vomit on his sweater already, mom's spaghetti He's nervous, but on the surface he looks calm and ready To drop bombs, but he keeps on forgettin' What he wrote down, the whole crowd goes so loud He opens his mouth, but

Canadian M&A Roundup Q4 2018

Mergers & Acquisitions

by Brian - January 28, 2019January 28, 20190

After a sharp increase in the deal activity in the third quarter of 2018, Canadian M&A experienced a 14.8% drop to CAD $129.75B in Q4 from $152.4B in Q3, reflecting a 14.8% Q/Q decrease, and a significant increase from $32B in Q4 2017. M&A Drivers A few drivers of M&A activity in

Where is the S&P 500 and Where Will It Be in 6/12/18 Months – Part II

by Matt - January 27, 2019January 27, 20190

Where is the Stock Market Going in 2019 and After Read Part I Here We expect the market to rise back to its peak around 3,000 because of how we interpret this chess game - Trump needs a deal to save face because of voter fatigue around the China issue. Midterm elections

Where is the S&P 500 and Where Will It Be in 6/12/18 Months – Part I

Markets

by Matt - January 27, 2019January 27, 20190

Answering Market Questions in S&T/Investment Banking Interviews 2019 We get asked a lot by people who are interviewing for sales and trading (and investment banking, as MDs like to see if students know what is going on in the markets, can speak to the underlying factors and develop a view). We

Why Investment Bankers Are Bad Investors

by Matt - January 26, 2019January 26, 20190

Friendly Neighbourhood Investment Banker Not A Stock Picker Seems counterintuitive right? People who literally look at stocks all day and tell corporates how to take on corporate actions (such as mergers & acquisitions, dividend hikes and share repurchases, and play Nostradamus on how the market will respond to things in glossy

Value Capture Model

Finance 101

by Karl - January 20, 20190

Porter's five forces, founded in the 1980's, is the classical framework used to understand and analyze competitive forces in an industry. In the 1990's, a new framework was formed, the Value Capture Model. The Value Capture Model extends on previous frameworks in two ways. One, it formally describes competition as a