Distressed investing involves long bankruptcy proceedings and impeccable valuation skills – and comes with an expectation of high returns
2 minutes
LRCN AT1 bonds are unsecured, long-dated hybrid securities meant to enhance banks’ core capital base, offering higher yield - and higher-than-usual risk for bank debt.
3 minutes
Volatile markets are making investors reach further out the risk spectrum in search for yield, which can lead some market participants well beyond their comfort zone
4 minutes
Distressed debt investing enables bondholders to purchase debt at reduced prices – but to make a profit off those holdings, investors need to do their research
2 minutes
Hollywood loves to make movies about flashy financial hustlers - here are a few of our top picks that might teach you valuable investing lessons.
5 minutes
The amount of Fed intervention during the COVID-19 pandemic seemed endless. Why were the Fed actions so different during that time, and what are its impacts?
3 minutes
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Distressed investing involves buying the securities of issuers in or approaching bankruptcy to make a profit.
The word “distressed” reflects the fact that bankruptcy is not good for the price of a company’s securities. The...
A new Additional Tier 1 (AT1) bond, known as a Limited Recourse Capital Note (LRCN), has been introduced to the Canadian market. It’s a type of unsecured, long-dated bond banks can use to enhance their core capital base to sa...
The search for yield is at the heart of investing for numerous market participants, but as increasingly volatile markets lead to unprecedented monetary policy responses, the quest for income is pushing investors further and f...
Debt can be classified as distressed when a company gets into trouble and their bonds trade at much wider spreads.
Generally, those spreads would be greater than 1,000 basis points (or 10%) above the respective government...
Hollywood loves to make movies about flashy financial hustlers - here are a few of our top picks that might teach you valuable investing lessons.
The COVID-19 pandemic forced the U.S. Federal Reserve into unprecedented policy actions and led to a level of Fed intervention unlike anything markets had ever seen.
It’s reminiscent of that scene from Toy Story when Buzz...
When rookie retail investors seem to be on a winning streak, what could possibly be so wrong with taking your COVID stimulus cheque or even your life savings and sinking them into an online brokerage like Robinhood ...
A curious thing happened to Hertz stock in the middle of the COVID-19 pandemic: retail investors couldn’t get enough of it, even after the company declared bankruptcy, major shareholders dumped their shares and the company it...
Investors often overlook the bond market because they find it mysterious and confusing, but bonds can provide much-needed stability in a portfolio. They also play an important role in maintaining liquidity during an economic ...
Oil prices can be influenced by many factors, but the most crucial among them are supply, demand and storage capacity.
That’s because like any other commodity, oil follows a production cycle.
When demand increases faste...
One of the ways banks make money is off the interest payments and expenses they receive from the loans they give out. If those loans aren’t repaid or the interest payments aren’t as high as expected, the banks’ earnings can t...
A home equity line of credit, or HELOC, is a loan that lets you borrow against the equity in your home. It’s typically offered as part of your mortgage by a financial institution, but it can also be a stand-alone loan.
Unl...
A major financial crisis like the one caused by the COVID-19 pandemic can immediately cause panic, but there are ways to ensure you’re in as good a position as possible when you come out on the other side.
“I like to think...
The causes and nature of a recession can impact how that crisis plays out and how long the recovery will take.
Economists have an informal shorthand of recession shapes to described these rebounds, based on the general sha...
One of the many things that happened during the early days of the COVID-19 pandemic was a search for context and perspective. Faced with a health crisis that forced the shutdown of the economy, people were left grasping for a...
Quantitative easing refers to a central bank buying government bonds and other assets to stimulate the economy and return it to full employment.
Banks like the U.S. Federal Reserve, the Bank of Canada or the European Centr...
In the first weeks of the COVID-19 pandemic, as the extent of the damage the economy and financial markets would suffer started to become clear, the U.S. Federal Reserve and the Bank of Canada made a series of increasingly la...
When the economy is struggling, it’s usually central banks that will step in to give it a little nudge through a shift in monetary policy. But when that’s not enough, governments can step in with fiscal policy changes.
“Hi...
Accounting standards tell companies how to report their financial results. They help create a standardized system of reporting so that analysts, lenders and other financial professionals and investors can compare companies an...
It’s the job of financial advisors and wealth managers to create the right asset mix for clients, so whether you have the kind of advisor who’s constantly updating your holdings or one who sets it and forgets it, there will b...
Financial compliance is about making sure a company follows the rules. It’s meant to maintain investor confidence and make sure markets are efficient, transparent and fair. Over time, compliance systems have become more sophi...
Markets have cycles. They can be volatile and prone to sudden drops. But there’s a big difference between the usual ups and downs of financial markets and the extreme highs and lows that come with financial bubbles.
Over h...