added 45, finished 44

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]]

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

mba/ch45.org

@@ -0,0 +1,8 @@
+#+title: Section 8 | Lesson 45 - Risk & Return, Business Statistics, Security Law
+#+HTML_HEAD: <link rel="stylesheet" type="text/css" href="../_share/media/css/business.css" />
+
+* 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