Musings on Markets

AUGUST 15, 2023

I was reminded of that paper a few weeks ago, when Fitch downgraded the US, from AAA to AA+, a relatively minor shift, but one with significant psychological consequences for investors in the largest economy in the world, whose currency still dominates global transactions. and the reverse will occur, when risk-free rates drop.

Investments 98

Investments Currencies Treasury Hurdle Rate 98

Musings on Markets

JANUARY 9, 2021

First, all value numbers (like market capitalization, debt or revenues) that I aggregate or average will be converted into US dollars to ensure currency consistency. First, all value numbers (like market capitalization, debt or revenues) that I aggregate or average will be converted into US dollars to ensure currency consistency.

Valuation 52

Valuation Currencies Numbers Corporate Finance 52

Barry Ritholtz

NOVEMBER 8, 2022

CHANCELLOR: They’re buying them to manipulate the currency of China, most of all. The mortgage borrowers who — interest rates went up, but mortgage borrowers were protected by giving taxation relief on their interest payments. And currency declined with capital controls. RITHOLTZ: And then investing.

Valuation 59

Valuation Finance Investments Banking 59

Musings on Markets

JANUARY 5, 2024

Employee Count & Compensation I nvesting Principle Financing Principle Dividend Principle Hurdle Rate Project Returns Financing Mix Financing Type Cash Return Dividends/Buyback s 1. The other is the presence of multiple currencies, with companies in different countries reporting their financials in different currencies.

Valuation 105

Valuation Financial Analysis Analyzing Data Profit and Loss 105

Musings on Markets

JANUARY 28, 2024

In particular, there are wide variations in how risk is measured, and once measured, across companies and countries, and those variations can lead to differences in expected returns and hurdle rates, central to both corporate finance and investing judgments. What's coming?

Hurdle Rate 117

Hurdle Rate Concentration Investments Finance 117

Musings on Markets

JULY 25, 2023

S&P, Moody's and Fitch, in addition to rating companies for default risk, also rate governments, and they rate them both on local currency debt, as well as foreign currency debt. I know that the currency choice is the source of angst for many analysts, and I think unnecessarily so. I have my reasons.

Currencies 52

Currencies Hurdle Rate Valuation Marketing 52

Barry Ritholtz

MAY 21, 2024

00:29:32 [Speaker Changed] Certainly for commodities and for currencies. But now we’re back to a more normal hurdle rate. 5% interest rates is not super high. Yeah, 00:29:35 [Speaker Changed] Exactly 00:29:35 [Speaker Changed] Right. Maybe less so for equities or fixed income. 00:50:03 Not anymore.

Finance 59

Finance Marketing Numbers Investments 59

Barry Ritholtz

DECEMBER 26, 2023

So it’s gonna take a little more confidence, you know, and equities to, because you get your, your hurdle rates higher, you know? Safe harbor harbor here, a little apo apocalyptic currency. Now, you know, they don’t want people to take on as much risk in, in some regard.

Marketing 64

Marketing Leadership Finance Investments 64

Barry Ritholtz

NOVEMBER 25, 2024

So you’ve got, you’ve got a modeling hurdle rate that you need to figure out when you’re adding diversifiers. Trades a similar universe of currencies and commodities and, and equities and rates around the world. Well, there’s a real opportunity cost there, right? The second is behavioral.

Leverage 59

Leverage Investments Marketing Math 59

Musings on Markets

JULY 24, 2024

Country Risk in Business Most corporate finance classes and textbooks leave students with the proposition that the right hurdle rate to use in assessing business investments is the cost of capital, but create a host of confusion about what exactly that cost of capital measures. This is not just theory, but common sense.

Hurdle Rate 75

Hurdle Rate Currencies Valuation Economics 75