What is a Collateralized Mortgage Obligation? A Collateralized Mortgage Obligation (CMO) is a structured fixed income product that repackages mortgage-backed securities (MBS) into multiple tranches. Each tranche offers a different level of risk, return, and maturity, allowing investors to better manage cash flows and prepayment risk. Since their creation in 1983, CMOs have become an…
Why Should You Learn Valuation? If you’re looking to build a career in investment banking, equity research, private equity, or FP&A, valuation is a core skill you’ll need to master. Financial analysts use valuation models to assess how much a company is worth, if buying another company is a good deal, and identify good investment…
In this episode, Logan Burchett, co-founder and COO of Forecastr, shares his unexpected career path—from aspiring lawyer to finance professional to entrepreneur. Initially set on law, he discovered a passion for economics and finance in college, which led him to work as a financial analyst and later at a pension fund. His time at Venture…
AI and Finance Jobs: Making AI Work for Your Career Whether you’re just starting your career in finance or have years of experience, one thing is clear — AI is changing the way finance professionals work. But this isn’t about jobs disappearing. It’s about new opportunities, smarter workflows, and future-proofing your career in a rapidly…
Why Driver-Based Planning Matters in FP&A Businesses need dynamic, forward-looking planning methods to keep up with rapidly changing market conditions. Traditional approaches built on historical data and static assumptions often fail to capture the real drivers of performance, leading to inaccurate forecasts and rigid budgets. This is where driver-based planning makes a difference. By focusing…
AI’s Growing Role in Financial Anomaly Detection When financial errors like miscalculations and reporting mistakes go unnoticed, they can cost a company millions of dollars in losses. Traditional financial audits rely on manual oversight, leaving room for human error and undetected discrepancies. This is where AI anomaly detection is changing the game. AI-powered financial analysis…
In this episode of What’s New at CFI, Ryan is joined by Jeff Schmidt to introduce CFI’s latest course, Accounting for Inventory. They discuss the importance of inventory accounting across industries, covering key methods such as Weighted Average, FIFO (First In, First Out), and LIFO (Last In, First Out). Jeff explains how different inventory accounting…
Understanding Budget Models in FP&A Budgeting plays a central role in Financial Planning & Analysis (FP&A), shaping how businesses allocate resources, control costs, and plan for the future. Choosing the right budgeting approach ensures that financial plans are realistic, data-driven, and aligned with business strategy. The best budgeting model for a business depends on factors…
Why the Capital Stack Matters in Corporate Finance If a company wants to expand, it needs funding. Companies must decide how to raise these funds, called capital. With adequate capital, companies can invest in growth opportunities like launching a new product, acquiring another business, or scaling operations. That’s where the capital stack comes in. Understanding…
Why Bank Regulatory Capital Matters in Valuation When analyzing a bank’s valuation, profitability alone doesn’t tell the full story. A bank may post billions in earnings yet remain constrained in dividend payouts or growth potential. The reason? Bank regulatory capital. Regulatory capital requirements determine how much capital banks must hold before distributing profits to shareholders…
