Economic Value of Equity (EVE): Protection from Rising Interest Rates
By Muadh Alhusaini, CFA, FRM, CAIA
Economic value of equity (EVE) can help determine how well a company can weather interest rate hikes.
Perpetual Debt Is Already Here
By Sebastien Canderle
The costs and risks associated with debt have shifted from the borrower to the lender.
Modern Private Equity and the End of Creative Destruction
Our economies are under the stewardship of fund managers with one goal in mind: to maximize fee income, even if it means holding on to impaired assets.
Corporate Bonds after a Spin-Off: Consider the Covenants
By Nathan N.J. Grant, CFA
Whatever their motivations, spin-offs can have a dramatic effect on the performance of the associated corporate bonds, so it is crucial that fixed-income investors conduct the necessary analysis. Nathan N.J. Grant, CFA, has some advice.
US Corporate Tax Cuts: Companies Concerned about Year-End Time Crunch
By Sandra Peters, CPA, CFA
Yesterday, Congress passed the tax reform bill that reduces the corporate tax rate from 35% to 21%. Tax law changes will make it into financial statements when they are signed by President Donald Trump. While the changes are not effective until 2018, they significantly impact estimates made in 2017 financial statements once the bill is signed.
Weekend Reads for Investors: Wake Up from the Summer Doldrums Edition
By Jason Voss, CFA
Jason Voss, CFA, provides his picks for Weekend Reads for Investors. This edition curates stories on the potential repeal of the tax deduction corporations in the United States receive on debt payments, the end of Big Oil, how we can recognize machine consciousness, and more.
The Financial Industry: A New Discipline of Ownership
By David Larrabee, CFA
The finance industry, long plagued by public distrust, has reached a tipping point, says Stephen Davis. The public's anger, fueled by a belief that investors have been unjustly "separated from their money," has helped to usher in a new "discipline of ownership."
The C-Suite Speaks: Dog Days of Summer
By Scott Krisiloff, CFA
The dog days of summer continue to see sluggish economic growth, with the longed-for rebound slow to materialize. It is difficult to imagine any acceleration in growth rates without inflation, says Scott Krisiloff, CFA, in his latest roundup from the C-suite.
The C-Suite Speaks: Industry Restocking
There were signs that inventories have been sufficiently depleted, and that industry is cautiously beginning to restock again. However, Scott Krisiloff, CFA, cautions, if inventories are restocked and demand doesn't concurrently rebound, companies will shortly find themselves in a precarious position once again.
The C-Suite Speaks: Department Store Rebound?
Department stores don't provide the same read on the economy as they did in the past, but, overall, activity is still depressed, says Scott Krisiloff, CFA. Yet there are signs of a possible upturn. And while the presidential election has been a source of uncertainty, the polls may be starting to give an indication of who is likely to win without having to wait until Election Day.