Accounting for derivatives: a huge problem for investors

Over many years, as an aside to teaching about convertibles as a product, I’ve had to explain the basis for accounting for them.  The accounting has always seemed pretty harmless to me until I recently made a case study out of the  online luxury fashion retail platform, Far Fetch (LON:OK60)(NYSE:FTCH).

By |2022-12-16T07:54:55+00:00December 16th, 2022|Accounting for Derivatives|Comments Off on Accounting for derivatives: a huge problem for investors

The LDI Liquidity Crunch

LDI nuts and bolts It’s hard to have escaped all the recent noise in the media about the UK’s mini budget (ironically with not-so-mini consequences!) and the repercussions through financial markets.  And one of those headline consequences was pension funds being plunged into liquidity crunches due totheir LDI strategies. Again, ironically, the funds hit

By |2022-12-06T14:44:43+00:00December 1st, 2022|Uncategorized|Comments Off on The LDI Liquidity Crunch

Reading List

It’s a while since we last gave any book recommendations, so here is a new list of some of the interesting books the team’s been reading, they aren’t all textbooks, but all are really interesting reads that have something to teach us about investing and the financial world we are in: “Thrillers” Freezing

By |2022-10-19T16:20:37+00:00October 17th, 2022|Reading List|Comments Off on Reading List

Airlines have been hedge-trimming, but where are they now?

It’s been a round ride for airline operators over the last 3 years. Just when you think things are re-stabilising after COVID then the energy ‘crisis’ hits the fan and fuel costs increase 3 fold!  But the operators have been hedging, right? And if you’re hedging then you’re eliminating risk, right? If only life

By |2022-09-08T12:10:29+00:00September 8th, 2022|Airlines, Hedge-trimming|Comments Off on Airlines have been hedge-trimming, but where are they now?

Leveraged buyouts (or “LBOs”) explained

One of our tech team was reviewing and testing our website and pointed out that whilst we were selling LBO modelling, we didn’t actually explain what an LBO was! So here goes. We need to start off with the private equity industry which really began in the 1980s – or rather that’s when one

By |2022-08-09T14:06:58+00:00August 9th, 2022|LBO|Comments Off on Leveraged buyouts (or “LBOs”) explained

Know your Numbers! – Modelling PPE and Capex

Let me start by saying that in financial analysis, valuation and modelling there is no substitute for knowing your numbers! This is no doubt the case when it comes to looking at PPE. PPE is one of the core elements of any financial analysis.  That link between investing in the business and growth in

By |2023-09-08T09:51:25+00:00May 17th, 2022|Capex, Modelling PPE|Comments Off on Know your Numbers! – Modelling PPE and Capex

Conduct- Putting the pieces together

The subject of organisational conduct is very topical. Time was, that organisations, managers and society turned a blind eye, did not see the impacts, and did not consider the consequences of misconduct. That is no longer the case. Bad conduct within an organisation can have serious consequences for the individual, management and shareholders.  

By |2022-02-14T13:45:32+00:00February 14th, 2022|Concepts|Comments Off on Conduct- Putting the pieces together

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