Category: course-related

TSLA Valuation Blues

Predicting the future is hard enough as it is, but if you’re doing it for a well-established, large company, then your task is significantly easier. The past will be a fairly decent predictor of the future (except when it’s not).…

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De Fault of the Government

Apologies for the bad pun above, but there’s a lot of talk about default, and the uncertainty has made investors sell off short-term Treasuries. From this week’s Wall Street Journal: Banks are dumping short-term government debt, usually one of the…

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Having Trouble With Your Forecasts?

You are not alone. This week’s Wall Street Journal has an article on how analysts “sober up,” and bring their optimism down a notch as the actual earnings announcements from companies come due. In each quarterly earnings announcement and the associated conference…

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The TED Spread and Europe: Another Risk Premium

The TED spread is the difference between the three-month commercial interbank lending rate (LIBOR) and the three-month US Treasury bill yield. LIBOR is a rate that is used to measure the cost of bank-to-bank lending and borrowing.  The US Treasury…

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Smoking These Bonds is Injurious to One’s Health

Some  years back, I blogged about the bond bubble leading to even churches issuing bonds. Now bonds are being issued that depend on manufacturers of the devil’s weed (I’m referring to tobacco. I know it’s an antiquated reference, but work with me…

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Myths about Derivatives

Although my students already know that some of these are myths, it does not hurt to be reminded of them every once in a while. Here is a sampling of the first myth, that includes the story of Thales, one…

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Open University: Robert Shiller

Students, here is the link as promised: http://oyc.yale.edu/economics/financial-markets Here is the description of the course: Financial institutions are a pillar of civilized society, supporting people in their productive ventures and managing the economic risks they take on. The workings of these…

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