CFO News Room

JANUARY 21, 2023

Corporate Bonds: No Shortage of Risk Capital In my last post, I chronicled the movement in the equity risk premium, i.e. the price of risk in the equity market, during 2021, but the bond market has its own, and more measurable, price of risk in the form of corporate default spreads.

Treasury 130

Treasury Currencies Numbers Investments 130

PYMNTS

MAY 16, 2018

” And while they might care about those values, at this point investors are likely wondering more about SoFi’s mission, a product offering that justifies a valuation of $4.4 The goal seemed clear: to convince the Street that the drama is over, and that the firm is now fully focused on “our mission and our company values.”

Credit Risk 40

Credit Risk Valuation Leadership Finance 40

PYMNTS

FEBRUARY 7, 2020

John Cronin, an analyst at Goodbody’s, told the Financial Times that by using banking partnerships, Amazon could “significantly extend” its SMB lending platform, “without any associated credit risk of regulatory obligations (in the context of capital and liquidity and so forth).”. Never underestimate the value of logistics.

eCommerce 52

eCommerce Benchmarking Restructuring Credit Risk 52

PYMNTS

DECEMBER 10, 2016

Stock prices opened at $15 but popped pretty immediately thereafter, shooting up 56 percent by the end of the first day — and locking Lending Club’s valuation in at $8.5 Lending Club’s valuation never got much higher than that $10 billion mark, but it did manage to keep its share price above its IPO value for the first half of 2014.

GAAP 73

GAAP Compliance Valuation Auditing 73

PYMNTS

OCTOBER 4, 2019

India’s FinBox landed an undisclosed amount of pre-Series A funding, reports in Inc42 said this week, with investors at Arali Ventures leading the investment in the credit risk management technology startup. FinBox plans to use the investment on product research and development. Both Greensill and SoftBank declined to comment.

B2B 51

B2B eCommerce Startups Foreign Exchange 51

PYMNTS

OCTOBER 1, 2018

Its stock popped 56 percent in the first day of trading, leaving the company’s post-IPO valuation at $8.6 “Advisers who adjust their valuation processes to boost results are in breach of their duties to investors.”. Within five days of that IPO, LendingClub’s value had grown to $10 billion. The Problems and the Reformation.

Valuation 54

Valuation Startups Banking CFO 54

Musings on Markets

JANUARY 27, 2022

Corporate Bonds: No Shortage of Risk Capital In my last post, I chronicled the movement in the equity risk premium, i.e. the price of risk in the equity market, during 2021, but the bond market has its own, and more measurable, price of risk in the form of corporate default spreads.

Treasury 84

Treasury Currencies Investments Numbers 84

Barry Ritholtz

MARCH 5, 2024

What happened over the last year and a half or so is rates went up and valuations went down. But in our experience, we’re seeing them efficiently transfer the credit risk of assets, but keeping the customer relationship, it’s a very important distinction. This is their hedge to credit risk.

Mergers and Acquisitions (M&A) 57

Mergers and Acquisitions (M&A) Credit Risk Investments Banking 57

Barry Ritholtz

AUGUST 29, 2023

And you had to take on significant duration risk and credit risk just to earn a couple percentage points. DAVIS: Where international equities, because of valuations, probably 7% to 7.5%. RITHOLTZ: So let’s talk about that, because that gap in valuation has persisted for a long time. RITHOLTZ: Right.

Investments 52

Investments Benchmarking Valuation Construction 52

Barry Ritholtz

FEBRUARY 13, 2023

But there are so many tools at your disposal, and let alone how much duration you’re taking, how much interest, how much credit risk you’re taking, illiquidity, et cetera. And how do you make the decision, I’m not comfortable with this credit risk relative to the return it’s going to throw off?

Mergers and Acquisitions (M&A) 57

Mergers and Acquisitions (M&A) Investments Marketing Education 57

Barry Ritholtz

AUGUST 15, 2023

The challenge is unlike the S&P 500, hedge funds sit in a box that has underlying credit risk from prime brokers. So the credit markets froze. What’s the valuation? RITHOLTZ: If you’re a long short fund at the very least, and David Einhorn and others very famously were short Lehman Brothers.

Benchmarking 52

Benchmarking Investments Marketing Treasury 52

Barry Ritholtz

SEPTEMBER 26, 2023

But at the end of the day, the companies we invest in are bottoms up or based on bottoms up credit analytics that we have the conviction and we’ll return par plus accrued through through a cycle. And if they don’t, we’re happy to own them at the valuation that we are creating that company act.

Investments 52

Investments Economics Banking Construction 52

PYMNTS

AUGUST 26, 2019

Most depressions are debt and credit contractions,” he said. They’re not over-valuation of stock market contractions. They are primarily debt and credit because debt in credit wipes out people. It’s an awful situation for the Chinese.”. As a rule of thumb, there exist roughly 70 to 80 years between depressions.

Manufacturing 57

Manufacturing Currencies Economics Valuation 57

Barry Ritholtz

MARCH 12, 2024

And up until that moment in time, we didn’t spend a lot of time on credit risk in mortgages. We didn’t really have to model credit risk because that was, that risk was taken by the agencies. But in these private labels, you had the, the market was taking the credit risk.

Profit and Loss 57

Profit and Loss Investments Marketing Securities 57

Barry Ritholtz

DECEMBER 20, 2022

It’s just a fascinating conversation about looking at the world from both bottoms up and top-down, as well as thinking about what valuations are like, how likely are macro events, the impact you’re getting not just the return on capital, but as famously said in fixed income, a return of your capital. But that’s very helpful too.

Restructuring 61

Restructuring Investments Marketing Banking 61