Category Finance

The Mathematics of Leverage

I think this is one of the most important lessons of the course. This chart is clickable.  The starting base case is an asset that pays a 10% yield, that is purchased with 75% debt at 8%.

On the Value of Yahoo!

Yahoo’s CEO Marissa Mayer said last October that she would communicate back to shareholders by the next earnings release on Jan. 27 with the company’s plans for the rest of its Alibaba holding.  Here’s a story that describes the current situation.   Also, below is a very simple analysis of Yahoo. Start with the value of the company […]

Intro to Credit Derivatives

Here’s an interesting article that goes through four types of credit derivatives: Credit Default Swaps Total Return Swaps Credit Linked Notes Collateralized Debt Obligations Also, the website is interesting because it seems to be published by a couple of college students who also run value-oriented fund. http://www.value-edge.com/introduction-to-credit-derivatives/ http://www.value-edge.com/about/

[HW 4.0] About options

Here are a couple of articles about employee stock options. http://fortune.com/2014/11/21/stock-options-back-to-the-90s/ http://www.danemott.com/it-is-not-double-counting-to-expense-stock-based-compensation/

On Bitcoin

The subject of Bitcoin has come up a few times over the last few weeks, and for anyone who is interested, I thought I would post a few links. Here are a few things that I think are interesting and worthy of attention: First, this article came out in the WSJ on Saturday, and I […]

Options infographic

Courtesy of the nice people at Visual Capitalist, this is an herding infographic relating to options. http://www.visualcapitalist.com/basics-of-options-trading/

On asset allocation

Barry Ritholtz is an Asset Manager who also writes a good blog covering financial events called The Big Picture. Here is an article that Ritholtz wrote for the Washington Post that may give you a view into how this asset manager thinks.  The article is a critique of a book published by Tony Robbins, who is probably […]

What’s In A Term Sheet?

Here’s a quick overview of the main clauses that you might expect to find in a term sheet from a venture capitalist. http://earlygrowthfinancialservices.com/whats-term-sheet/  

Einhorn vs. Lehman

Two videos from June 3, 2008 which was when investor David Einhorn was asking questions about Lehman Brothers The attack from David Einhorn And the response from the CFO of Lehman Brothers   And to give you a sense of why Lehman was important:  

A Good Way To Show Sensitivities

Here is an example of a good way to show sensitivites. Notice that the person that put this together: 1. put the inputs on the left, 2. and the outputs on the right. 3. The active case is at the very top 4. The base case is just below the active case 5. At the very […]