How to think about minimum cash balance
Over the years, I’ve asked this question to my banker friends: “what’s our minimum cash balance?” The topic would come up from time to time, but not very often because…
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Corporate Finance
5 posts
How is VWAP calculated?
When equity brokers pitch their share repurchase capabilities to corporations, they never fail to mention their ability to outperform VWAP. When asked how they outperform so consistently, the answers tend…
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Yield vs. Return, what’s the difference?
Many times we use the terms return and yield interchangeably, and that may be because both concepts describe investment performance. But they are not the same. The difference is this…
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Nuances of the Barclays Fixed Income Indices
Most corporate investors use benchmarks to express their desired asset allocation, to guide their asset managers’ portfolio construction process and, on an ex-post basis, to measure their performance. Well known…
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How does selling bonds affect portfolio yield?
I’m going to give you a rule of thumb for estimating portfolio yield after rebalancing (a.k.a., liquidating) your bond investment portfolio. If you don’t already explicitly know this rule of…
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