From 7ef9f2564ce38c8ee8531ec00f2cff10cd644eda Mon Sep 17 00:00:00 2001 From: ronny abraham Date: Mon, 9 Dec 2024 17:45:51 +0200 Subject: [PATCH] added 45, finished 44 --- mba-main.org | 1 + mba/ch44.org | 26 ++++++++++++++++++++++++++ mba/ch45.org | 8 ++++++++ 3 files changed, 35 insertions(+) create mode 100644 mba/ch45.org diff --git a/mba-main.org b/mba-main.org index 29d4513..7cb5bbc 100644 --- a/mba-main.org +++ b/mba-main.org @@ -47,3 +47,4 @@ ** Section 8 - Financial Capital and Securities Law #+attr_html: :class contents-overview - [[./mba/ch44.org][Chapter44. Debt/Bonds, Interest Rates/Yield Curves, Equity]] +- [[./mba/ch45.org][Chapter45. Risk & Return, Business Statistics, Security Law]] diff --git a/mba/ch44.org b/mba/ch44.org index 8d77e3f..312d9ec 100644 --- a/mba/ch44.org +++ b/mba/ch44.org @@ -64,3 +64,29 @@ ** basic needs to assess risks - a mature cash rich company pays a lower debt + +** underlying economic drivers +- we all really on ratings agencies + - S&P + - Moody's + +- better the rating, lower interest on debt + - AAA (best) + - AA + - A + - BBB (investment grade) + - anything higher than this is considered OK + - anything lower is "junk bond" / "high yield" + +*** investment grade +- anything above BBB +- Default Risk Premium (DRP) is less than 1% above US treasuries rate + +*** junk bonds +- BB and below +- DRP is 5% above treasury rates + +*** why this matters +- early stage companies that take loans get junk bond rates +- this is why it's better to get equity / VC financing +- low inflation leads to startups diff --git a/mba/ch45.org b/mba/ch45.org new file mode 100644 index 0000000..30a1019 --- /dev/null +++ b/mba/ch45.org @@ -0,0 +1,8 @@ +#+title: Section 8 | Lesson 45 - Risk & Return, Business Statistics, Security Law +#+HTML_HEAD: + +* Links +- [[./../mba-main.org][TOC | Business]] +- [[https://www.udemy.com/course/an-entire-mba-in-1-courseaward-winning-business-school-prof/learn/lecture/4283486#overview][S08:L45 Risk & Return, Business Statistics, Security Law]] + +* Notes