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24. Q&A: Treasury Stock Method, Relative Value Trading, The Yield Curve & More!

Season 1 Episode 24 Published 2 years, 4 months ago
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Welcome back to the Wall Street Skinny with Kristen and Jen!  To kick off today's episode, we answer listener questions about:

Ownership and EPS (earnings per share) dilution when analyzing companies using the Treasury Stock Method in corporate finance.  We unpack the concept of a relative value trade, specifically a high yield vs. investment grade trade in the credit derivatives market of CDS and CDX.  Then we switch gears to discuss a single name credit analysis in the context of a rumored leveraged buyout by a private equity firm and the potential impact on a company's existing bond holders.  And finally we dive into the concept of the yield curve, explaining how the term structure of interest rates not only reflects current monetary policy, growth & inflation expectations, and risk appetites...but also impacts nearly everything financial decision you make in your daily life!

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