'Tis the season for... stock market predictions! Back when I was a wee credit analyst, my boss would ask me if I got updated financial projections from the management teams of the companies in my portfolio and what I thought of them. When I was just starting out, I would struggle to answer that question… Continue reading Stock Market Predictions
August 15, 2019 was a rough day for General Electric's (GE) stock. Harry Markopolos, the guy who unraveled the Enron accounting fraud, released a 169-page report claiming that GE was a bigger fraud than Enron. The gist of the report was that GE was hiding a bunch of long-term care insurance liabilities and that if… Continue reading Will Legacy Liabilities Sink General Electric (GE)?
I know, I know: I apologize. That must be the most click-baity headline you've seen today. But stay with me because, with a little financial engineering, every blue-chip company out there that still has underfunded pension liabilities now has the opportunity of a generation. With a phone call to their favorite investment banker they can… Continue reading Now is the Time for Pension Liability Risk Transfer!
Now is as good as time as any to explain the difference between unaudited and audited personal financial statements that get submitted to a bank, how a banker looks at personal financial statements, and what crosses the line between normal and criminal. Personal Financial Statements A personal financial statement that an individual submits to a… Continue reading Submitting Financial Statements to a Bank: an Explainer