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Weekly Roundup: June 10-16, 2022

Harvard Corporate Governance

Taskforce on Nature-Related Financial Disclosures Framework: Overview of First Beta Release. Do Equity Markets Care About Income Inequality? Tags: Banks , CFTC , Discovery , Financial institutions , Financial regulation , Financial technology , SEC , Securities enforcement , Securities regulation , Social media.

Beta 230
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Data Update 6 for 2025: From Macro to Micro - The Hurdle Rate Question!

Musings on Markets

The Hurdle Rate - Intuition and Uses You don't need to complete a corporate finance or valuation class to encounter hurdle rates in practice, usually taking the form of costs of equity and capital, but taking a finance class both deepens the acquaintance and ruins it. Corporate Default Risk , i.e,

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Data Update 1 for 2025: The Draw (and Danger) of Data

Musings on Markets

Thus, as you peruse my historical data on implied equity risk premiums or PE ratios for the S&P 500 over time, you may be tempted to compute averages and use them in your investment strategies, or use my industry averages for debt ratios and pricing multiples as the target for every company in the peer group, but you should hold back.

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Convertible Arbitrage Hedge Funds: The Perfect Combination of Investment Banking and Sales & Trading?

Brian DeChesare

Traditionally, if someone asked the “ sales & trading vs. investment banking ” question, the response was easy: “Do banking unless you really, really like trading and could not imagine doing anything else.”. Convertibles do not create immediate dilution , unlike a traditional IPO or follow-on equity offering.

Banking 89
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Distressed Debt Hedge Funds: How to Become a Vulture Capitalist

Brian DeChesare

Ask anyone interested in distressed debt hedge funds for “the pitch,” and they’ll probably mention one of the following: “It’s like long/short equity or credit , but more interesting!” Distressed investing offers equity-like returns with lower risk.” Distressed assets offer non-correlated returns, similar to global macro.”

Equity 103
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Discount Rate—Explanation, Definition and Examples

Valutico

For central banks like the Federal Reserve, it helps control the economy. They set this rate to affect how much money moves through banks and influences short-term interest rates. Different types of discount rates such as risk-free rate, cost of equity, or cost of debt, are used contextually in financial analysis.

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Country Risk: A 2022 Mid-year Update!

Musings on Markets

Country Risk: Equity Risk For equity investors, the price of risk is captured by the equity risk premium, and equity risk premiums will vary across countries. Please do not attach any political significance to my country groupings, or take them personally.