Cost of Capital. The Past, Present and Future? | Part 4
In Part 4 of our Cost of Capital series, we take a closer look at the dichotomy between inflation and interest rates. We discuss how easy monetary policy and a “cash is trash” mindset have resulted in a decade of declining credit and equity risk premia. A return to reality in the relationship between inflation and interest rates could have a negative effect on asset valuations.
Read MoreCost of Capital. The Past, Present and Future? | Part 3
Part 3 in our Cost of Capital series considers potential monetary and fiscal policies to combat rising inflation and the inequality created by a decade of quantitative easing. The effect on the cost of capital of these policies and the implications for asset prices (both equity and fixed income) will likely be painful for investors.
Read MoreInflationary Trends Continue | Gordian Perspectives for May 2021
Related to our ongoing series on the cost of capital, we wanted to highlight notes from a recent webcast with James Grant, founder and editor of the Interest Rate Observer. Grant makes several salient points regarding inflationary trends in the US and the impact the Federal Reserve’s necessary response will have on U.S. markets.
Read MoreThe Nastiest Man in Restructuring | Middle Market Musings Podcast
Andy Greenberg and Charlie Gifford, in the Middle Market Musings podcast interview Peter Kaufman known to some as the nastiest man in distressed debt restructuring.
Read MoreCost of Capital. The Past, Present and Future? | Part 2
Part 2 in our Cost of Capital series examines the implications of rising inflation on the cost of capital, including an historic look at equity performance in the 1960s and 1970s. This was a period when high inflation increased the cost of capital and equity returns languished despite improving corporate profitability.
Read MoreCost of Capital. The Past, Present and Future? | Part 1
In the first in a series on the cost of capital, Gordian employees discuss the impact US monetary and fiscal policy has had on interest rates and asset prices. We then lay the ground work for how these actions may affect future (i) government policies, (ii) asset valuations and (iii) investment decisions.
Read MoreGordian Perspectives for March 2021
In the aftermath of the Presidential Election, we wrote a piece discussing some of the economic challenges facing the Biden Administration, and how Biden’s actions may stir inflation and create sets of corporate winners and losers. Now that the Biden team has started to implement its agenda, we thought it would be interesting to revisit these issues.
Read MoreGordian Perspectives for February 2021
In the aftermath of the Great Recession, governments have actively depressed bond yields and inflated bond prices. Unfortunately, most market manipulations ultimately meet a messy end. If and when this particular manipulation goes the way of all flesh, yields will rise and bond investors will lose money. Bonds would stop being effective investment instruments, and become “Certificates of Confiscation”.
Read MoreGordian on Leveraging Market Uncertainty in Restructuring Private Equity Investments | Journal of Corporate Renewal
Gordian Group’s David Herman, Peter Kaufman and Liam Ahearn recently penned an article for the Journal of Corporate Renewal (JCR)…
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