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Decentralized Finance, Crypto Funds, and Value Creation in Tokenized Firms

Reynolds Holding

Decentralized Finance (DeFi) employs blockchain technology and smart contracts with the goal of enabling perfectly disintermediated financial markets. Cumming, DeSantis Distinguished Professor of Finance and Entrepreneurship at Florida Atlantic University. This post comes to us from Paul P.

Finance 134
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Data Update 4 for 2024: Danger and Opportunity - Bringing Risk into the Equation!

Musings on Markets

In this post, I look at risk, a central theme in finance and investing, but one that is surprisingly misunderstood and misconstrued. That said, and notwithstanding decades of research and debate on the topic, there are still wide differences in how risk is defined and measured. What is risk?

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Terminal Growth Rate – A Simple Explanation with Formula

Valutico

Explaining Free Cash Flow: Cash flow is like the lifeblood of a business (or your personal finances). Beyond valuations, the Terminal Growth Rate is used in various areas within the realm of finance and business decision-making. These industries often experience slower growth as they reach saturation points in the market.

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Growth Equity: The Child Prodigy of Private Equity and Venture Capital, or an Artifact of Easy Money?

Brian DeChesare

Debt financing is much more common, and the GE firm is often the first institutional investor. The main factors were: The Rise of Tech and Software – Since so many growth equity deals involve technology, the sector’s rise over the past 10 – 20 years also drove a lot of growth equity investing. Why Did Growth Equity Get So Popular?

Equity 95
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Examining High Concentration Among Derivatives Intermediaries

Reynolds Holding

Cleared Derivatives Clearing refers to a quasi-legal technology that addresses counterparty credit risk through use of a central counterparty, i.e., a clearinghouse. The market risk related to a derivative contract is unrelated to its credit risk because the underlying variable tends to be unrelated to the counterparties.

Banking 64
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The Fundamentals of Financial Risk Management Explained

Audit Board

Financial risk management is an especially sensitive and critical aspect of risk management for many companies, as it has to do with the safeguarding of the organization’s finances and the prevention of loss. Good financial risk management leads to cost savings, better decision-making, and improved returns.

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The Front Office, Middle Office, and Back Office: How Banks Organize Their Dungeons

Brian DeChesare

The debate about the front office, middle office, and back office in the finance industry is one of the sillier and more exhausting ones. First, note that these terms apply only to investment banks and related finance firms (private equity firms, hedge funds, etc.). Case #3: The Risk Manager.

Banking 94