Corporate Bonds
What are Corporate Bonds? Corporate bonds are issued by corporations and usually mature within 1 to 30 years. The bonds usually offer a higher yield than government bonds but carry more risk. Corporate bonds can be categorized into groups, depending on the market sector the company operates in. They can also be differentiated based on...
Entry Multiple
What is Entry Multiple? An entry multiple, commonly used in leveraged buyouts, refers to the price paid for a company as a function of a financial metric. The entry multiple is crucial for private equity firms to know, as it helps them determine the purchase price of a company relative to a financial metric. It...
Reinsurance Companies
What are Reinsurance Companies? Reinsurance companies, also known as reinsurers, are companies that provide insurance to insurance companies. In other words, reinsurance companies are companies that receive insurance liabilities from insurance companies. It is important to realize that, similar to any other businesses, insurance companies require protection against risk. Insurance companies manage their risk through...
Metal Royalty and Streams
What are Metal Royalties and Streams? Metal royalty and streaming companies fund mines in exchange for money or precious metal. Mines often have trouble getting funding through traditional routes, such as banks, because of the high costs and unpredictable revenue associated with the mining industry. This is why they borrow funds from royalty and streaming companies....
Barbell Strategy
What is the Barbell Strategy? The barbell strategy involves investors purchasing short-term and long-term bonds, but not intermediate-term bonds. The particular distribution on the two extreme ends of the maturity timeline creates a barbell shape. The strategy offers investors exposure to high yielding bonds with limited risk. Why Use a Barbell Strategy? The barbell strategy...
