Corporate Finance

Corporate Finance

The fractal nature of asset-liability matching

What type of asset-liability matching am I talking about Asset-liability matching means different things to different people, even when you think you’re dealing with a specific situation and therefore talking…

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Time-weighted vs. money-weighted return

For money managers (and for our personal investments), rate of return is the most important number that is expressed in percentage terms. But how do we calculate it? Do we…

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Corporate Finance

How to think about swaps

Swaps is one of those topics that is perceived to be basic, easy, and intuitive. But not really. We study them briefly in business school and in the CFA curriculum,…

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Corporate Finance

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

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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Corporate Finance

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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Corporate Finance

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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Corporate Finance

The fractal nature of asset-liability matching

Time-weighted vs. money-weighted return

How to think about swaps

How to think about minimum cash balance

Yield vs. Return, what’s the difference?

Nuances of the Barclays Fixed Income Indices

How does selling bonds affect portfolio yield?