Liquidity Ratios and Asset Based Lending Commercial Banking by Matt - February 22, 2019February 22, 20190 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
Cloud Computing Primer Technology Trends by Matt - February 20, 2019February 20, 20190 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 Economics 101 Sales & Trading by Matt - February 19, 20190 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 Finance 101 by Karl - February 18, 20191 The standard Discounted Cash Flow (DCF) method is the typical tool used to value firms, but one drawback its inability to handle changing debt to equity levels. As we know, higher debt offers a higher tax shield, which in turn increases both firm value and equity value. To explicitly account
Introduction to Hostile Takeovers and Unsolicited Bids Mergers & Acquisitions by Matt - February 18, 2019February 18, 20190 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 Finance 101 by Karl - February 17, 2019March 3, 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. Data from Statistics Canada, 2009 Capital
Incurrence Covenants for High Yield Bonds Featured Leveraged Finance Restructuring by Matt - February 17, 2019February 18, 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 Featured Infrastructure Mergers & Acquisitions Real Estate by Matt - February 16, 2019April 25, 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
Offshore Wind Stocks Power & Utilities by Karl - February 12, 2019February 13, 20200 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 Power & Utilities by Karl - February 12, 2019February 12, 20200 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