Introduction to Green Bonds

Debt Capital Markets - What is a Green Bond? Green bonds are debt securities that use the proceeds to fund sustainable and environmental-friendly projects. Given today's investor focus on environmental, social and governance (ESG) factors - whether for political reasons or other ethical considerations, green bonds can be very attractive bond issuances

Modern Portfolio Theory and the Capital Allocation Line

In our Capital Asset Pricing Model post, we discussed risk and return for stocks. We also discussed the use of the relationship to value stocks, by interpolating what the return for a stock should be given a certain level of risk. We will build on these concepts and discuss how

Leasing and Speciality Finance Companies Part II: Element Fleet Management Case Study

Element Fleet Management Primer (TSE: EFN) Element Fleet is the largest publicly traded fleet management company in North America. Element Fleet also has operations in Australia, Mexico and New Zealand. The company primarily provides vehicle leasing along with a range of other services such as vehicle financing, program management, analytics and remarketing

Accounting Estimates: Managing Earnings

In our other accounting estimates articles, we talked about the discretion that management has in the income statement and the balance sheet. In this article, we will dive deeper into the incentives that management may have to manage these estimates. What is Earnings Management? Despite the discretionary nature of some of the

What Makes a Good Leveraged Buyout (LBO) Candidate?

There is a routine answer to this question - a company with large stable free cash flows and low levels of debt. This is usually followed by: How Does an LBO Create Value for Financial Sponsors? Debt paydown, EBITDA growth and multiple expansion. Debt paydown/repayment is easy to understand - if an LBO

M&A Deal Case Study

M&A Transaction Case Studies are commonly seen in case competitions, and sometimes in actual investment banking work. They are a quick analysis of an M&A transaction, summarized in a few PowerPoint slides. They can be a great way to prepare for interviews, while learning about the details of a transaction. Slide

What is a Leveraged Buyout? Introduction to LBOs

When someone brings up an LBO, people immediately associate this with investment banking and private equity. LBOs are associated with very advanced financial modelling and students sometimes get scared when the concept comes up. In reality, while investment bankers do run LBO models on a very regular basis, it is one of

Introduction to Enterprise Value and Valuation

It has become apparent to us that our website assumes a level of knowledge which may make it difficult for people newly interested in investment banking to jump into our interview section. So before someone goes from 0 to 60 and is asked about more advanced valuation concepts, we are going