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

Send us Fan Mail 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! Shop our Self Paced Courses: Investment Banking & Private Equity Fundamentals HEREFixed Income Sales & Trading HERE Subscribe to our Substack: https://substack.com/@thewallstreetskinny