Greater Good Utilitarian Principles in China and Investing Implications

by Matt - January 10, 2020January 10, 20200

The Chinese economy will continue to march on at 6% GDP growth per year – so by that logic, should it match or outperform the S&P 500 every year which represents the U.S. with 2% GDP growth (or global GDP growth)? Likewise, will the average Chinese stock move up in

China Stocks Investing: New Cold War and Bond Defaults

by Matt - January 7, 2020January 7, 20200

In this post, we continue to discuss themes to understand before investing in Chinese stocks in the 2020s. Investing Amidst the U.S. China Cold War If the current trajectory continues (steady growth at 6% per year) while the Chinese economy continues to decouple from the U.S., there may end up being positive

Distressed Debt Overview

by Matt - September 5, 2019September 5, 20190

Introduction to Distressed Debt Similar to all other aspects of finance and investing, distressed debt investing means higher risk and higher reward. Distressed debt is in itself a very unique asset class that falls under the jurisdiction of alternative asset managers – primarily hedge funds. Although debt markets are very large

Spreading Investment Banking Comps: Net Debt

by Matt - March 17, 2019March 17, 20190

Getting to the equity market value of a company was discussed in a prior post. Recall that the basic enterprise value formula is: EV = Equity + Net Debt [Debt - Cash] The extended formula can be: EV = Equity + Debt - Cash & Marketable Securities + Preferred Shares + Minority Interest +

Real Estate Investment Considerations and Strategies

by Matt - March 3, 2019March 3, 20190

The following article should not be taken as investment advice and is for information purposes only In this post we discuss some factors to look at when investing in real estate as well as some ways to unlock value and create wealth using real estate (from a finance and capital allocation

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

The Sky Is Falling

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

High Yield Bond Characteristics

by Matt - November 20, 20180

High yield bonds are a major financing vehicle for many corporates. After introducing the high yield bond market in the previous post, we will discuss major characteristics of these bonds here. What matters to bondholders? Coupon, maturity, optionality, security, purpose, relative value - the other factors will all inform the ultimate

Introduction to Green Bonds

by Jaycee - November 20, 2018March 20, 20190

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

Responsible Investing Primer

by Jaycee - October 28, 2018October 28, 20180

What is Responsible Investing? Responsible investing ("RI") integrates environmental, social and governance (ESG) factors into investment processes and decision making. Responsible investing is currently estimated at over $20 trillion in AUM or around a quarter of all professionally managed assets around the world (Forbes). In the social media age, stakeholders both shareholders