Musings on Markets

JANUARY 27, 2021

As stock and bond markets went through these gyrations, it should come as no surprise that the same forces were playing out in other markets as well. Commodities : A commodity derives its value from being an input into a process to produce a item (product or service) that consumers need or want.

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Start-ups Marketability Equity Treasury 52

Brian DeChesare

SEPTEMBER 14, 2022

The same applies if you’re working in sales & trading on a fixed income trading desk, such as corporate bonds. You could even argue that buy-side roles such as direct lending , mezzanine , and credit hedge funds fall under this definition. Unfortunately, they’re all somewhat different – despite the similar names.

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Musings on Markets

AUGUST 15, 2023

In fact, the standard practice that most analysts and investors follow to estimate the risk free rate is to use the government bond rate, with the only variants being whether they use a short term or a long term rate. What is a risk free investment?

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Musings on Markets

MARCH 25, 2021

The first has been the steep rise in treasury rates in the last twelve weeks, as investors reassess expected economic growth over the rest of the year and worry about inflation. Those rates stayed low through the rest of 2020, even as equity markets recovered and corporate bond spreads fell back to pre-crisis levels.

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Equity Risk-free Rate Treasury Start-ups 52

Brian DeChesare

FEBRUARY 28, 2024

The confusing part is that fixed income research exists at banks (“ sell-side roles ”), buy-side firms such as asset managers and hedge funds , and even credit rating agencies, and each one differs. If the company liquidates, which lenders will get their money back? Also, it can be quantitative or fundamental – or both! –

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Equity Banking Start-ups Finance 59

Musings on Markets

JANUARY 9, 2021

I spent the first week of 2021 in the same way that I have spent the first week of every year since 1995, collecting data on publicly traded companies and analyzing how they navigated the cross currents of the prior year, both in operating and market value terms. So, why bother?

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Musings on Markets

AUGUST 5, 2023

That said, I don't blame you, if are confused not only about how I estimate this premium, but what it measures. How, you may ask, can equity risk premiums be that divergent, and does that imply that anything goes? What is it? What is it? The risk premium that you demand has different names in different markets.

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Risk Premium Equity Start-ups Treasury 78

Brian DeChesare

JANUARY 4, 2023

Any discussion of the financial markets in 2022 needs to acknowledge one important fact upfront: it was the worst year for stocks and bonds since at least 1871. A better question might be: “So, how much were you down by?”. Treasuries: 19% [Up 19%]. SPACs , and growth/speculative stocks. Short-Term U.S. Gold: 10% [Unchanged].

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Brian DeChesare

MARCH 13, 2023

How Does a $200 Billion Bank “Fail” in 24 Hours? But this is not how it works in the modern economy and financial system. It’s the second-biggest bank failure in U.S. history and the largest bank to collapse since 2008. Why bank regulations , including those passed after the 2008 financial crisis, failed to prevent this. But the U.S.

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Musings on Markets

DECEMBER 2, 2020

Setting the Table As with any valuation, the first step in valuing Airbnb is trying to understand its history and its business model, including how it has navigated the economic consequences of the COVID.

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Musings on Markets

MAY 11, 2021

While supporters of the increase point to the fact that only a very small portion of individuals will be affected by the change, those individuals, through their wealth, own a significance percentage of financial assets, and how they react to the change, assuming it happens, will determine whether their pain will become all of ours.

Dividends 52

Dividends Start-ups Risk Premium Treasury 52

Reynolds Holding

MAY 11, 2022

Department of the Treasury at the time, sent along with the Federal Reserve to examine the impending failure of this firm. Thus, the role of security based swaps in the market jitters in 1998, 2008, and 2021 help inform how I think about security-based swaps. Thank you for the kind introduction. I was serving at the U.S.

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Musings on Markets

JULY 25, 2023

The other is pragmatic , since it is almost impossible to value a company or business, without a clear sense of how risk exposure varies across the world, since for many companies, either the inputs to or their production processes are in foreign markets or the output is outside domestic markets.

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Reynolds Holding

OCTOBER 24, 2022

Today, I’d like to zoom in on that principle of competition, and how it runs through each part of the SEC’s mission. Thank you, Ken [Bentsen]. As is customary, I’d like to note that my views are my own, and I’m not speaking on behalf of my fellow Commissioners or the SEC staff. 1933 was an important year in SEC history.

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