Musings on Markets

MAY 20, 2022

In general, higher and more volatile inflation has negative effects on all financial assets, from stocks to corporate bonds to treasury bonds, and neutral to positive effects on gold, collectibles and real assets.

Price to Book 96

Price to Book Dividends Beta Equity 96

Musings on Markets

JULY 13, 2022

In my last post, I noted that concerns about inflation have played a big role in pushing up the US ten-year treasury bond rate from 1.51% on Jan 1, 2022, to 3.02% on June 30, 2022. That increase in interest rates is not restricted to the US dollar, as local currency government bond rates have risen around the world.

Risk Premium 81

Risk Premium Risk-free Rate Start-ups Equity 81

Brian DeChesare

NOVEMBER 9, 2022

Prop trading firms are like “high beta” versions of sales & trading desks and traditional hedge funds. It might seem crazy to leave a front-office trading role for a middle-office one (risk management, treasury, clearing, compliance, etc.). Sales & Trading Exit Opportunity #5: The Middle Office – Risk Management.

Banking 74

Banking Equity Start-ups Marketability 74

Valutico

OCTOBER 20, 2022

B = Beta. (Rm DCF WACC—similar to the above except that it calculates a different WACC in each forecast period based on a changing capital structure (D/E) and thus a changing beta in each period. Risk free rate (can use 10y Treasury). Ce = Cost of Equity. Rf = Risk-free Rate. Rm – Rf) = Equity Market Risk Premium.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Weighted Average Cost of Capital Net Present Value 52