Economics

1083 Posts

Breaking Bad Habits for Better Client Outcomes

Many investment professionals exhibit behaviors that negatively influence performance. If individuals and firms are going to be effective at eliminating these bad habits, the first step is to identify the most egregious — those that seriously impede the achievement of long-term client goals. To help, we asked CFA Institute Financial NewsBrief readers what patterns they thought were the most counterproductive. Read more

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Book Review: Opening Credit

Book Review: Opening Credit

Focusing on traded credit, the authors lay out the basic principles of fundamental corporate credit analysis and illustrate the key elements with recent examples. They explain why credit analysis should be focused on management rather than reported financial results. To be useful to credit analysts, financial results should be adjusted to reflect the company’s “economic behavior.” The authors also discuss common company manipulations and effective methods for dealing with these manipulations. Read more

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Private Equity’s Demise Has Been Greatly Exaggerated

Private equity’s demise has been overreported, according to Claudia Zeisberger, founder of INSEAD’s Global Private Equity Initiative. Critics of private equity are not hard to find, and if you listen to them long enough, you’ll hear all kinds of stories that make your stomach turn. No doubt, there have been bad actors abusing the label of “private equity investment.” But private equity is a governance structure, not a business model or industry. Read more

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