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What is leveraged finance?
 
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How can a private equity firm undertake one of those huge LBOs you hear about, while leaving the target company with the borrowed debt that has to be repaid? Leveraged Finance, of course. In this video, master explainer Paddy Hirsch details how these transactions work, what kind of debt is entailed, and who, at the end of the day, is left holding the bag (of money). More videos from Paddy: What is a leveraged loan? http://www.leveragedloan.com/primer/#!whatisaleveragedloan What is a high yield bond? http://www.highyieldbond.com/primer/#!what-is-a-high-yield-bond More on Paddy (nice specs btw, Paddy): http://www.paddyhirsch.com/ Check out LCD's awesome, free Leveraged Loan and High Yield Bond Primers! www.leveragedloan.com www.highyieldbond.com
Views: 12828 LCDcomps
Next Level Leadership: Allowing Yourself to Be Leveraged | Level Up Podcast
 
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Learn more about Infusionsoft for real estate: http://www.realestatesalessolutions.com/ The conventional view of leverage is that we delegate the things we don’t want to do. However, this is a flaw that sets us up for disaster. How can we carry out leverage in a way that creates value in our organization for years to come? As we move up the entrepreneurial ladder what needs to shift about the way we look at leverage? On this episode, we go deep on a new way of looking at leverage and how it actually brings more value to us and the people we work with. "There’s something way more important than leveraging others, and that’s having others leverage you." -Greg Harrelson Takeaways + Tactics - We could leverage one person to do the things we don’t want to do, or we can be somebody that’s highly skilled and allow others to leverage us. - We shouldn’t swing the pendulum so far that we’re delegating too many things. At a certain point, we stop being valuable leaders. If we focus on leveraging others, we care about ROI. If we’re focused on people leveraging us, we’re focused on ROT (return on time). - Allow people to observe what we are really good at. In turn, they will go higher in their own production, which gives you more profitability for longer. If we think about trends like building teams, expansion, and scaling, leverage is very significant to these things. Yet, the way we leverage is very important. It’s supposed to be about multiplying our effect and impact, not just getting things off our plates. There are things we are really, really good at. We need to let people leverage those things from us. Let them shadow you, learn from you and leverage the skills, talents and mindsets you give them. That way you will create a chain of value and profitability that goes many levels deep in your business. Resources: Learn more about Infusionsoft for real estate: http://www.realestatesalessolutions.com/
Views: 216 Level Up Podcast
04 - What is leverage? - easyMarkets - Education
 
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For more info visit: Easy Forex - http://www.easy-forex.com/gtw/6255274.aspx When most people think about investing they think that they need large amounts of initial capital in order to start. While this may be the case for stocks, bonds and other investments, forex is much more accessible due to the use of leverage. So how does leverage affect your trading? To explain, think of buying a home. You may want to buy a property that is worth one hundred thousand dollars, so you go to a bank to take out a loan or mortgage. The bank requests that you supply twenty percent of the property as a down payment on your loan. So, for twenty thousand dollars, you are now able to enter into ownership of a one hundred thousand dollar home. This is an illustration of leverage in real estate. You have bought the home at a leverage of five to one, since twenty thousand dollars is one fifth of one hundred thousand dollars. One year later the property market has appreciated by fifty percent and you decide to sell the property for one hundred and fifty thousand dollars, making a fifty thousand dollar profit. If you had not taken out a bank loan and had used only your twenty thousand dollars to buy a small studio which cost that amount, your total profit after a fifty percent property price increase would have been only ten thousand dollars. Your five to one leverage has allowed you to earn five times more than you would have if you had traded without leverage. Let's see how we can apply leverage to a forex deal. You currently have one thousand Euros to invest and you decide to buy one hundred thousand EUR worth of EUR/USD, at a rate of one point thirty-one thirty. Since one thousand is one hundredth of one hundred thousand, you are using a leverage of one hundred to one. The EUR/USD rate then moves up to one point thirty-one forty and you decide to close your deal, making a ten pip profit. Using the pip formula from the 'What is a pip video,' you can calculate that your total profit is one hundred dollars. If you had not traded with leverage you would have only made a one dollar profit. In fact, depending on your account type and risk preference, you can trade much smaller or larger deal sizes, and use different levels of leverage. It is important that you keep in mind that higher leverage can increase your potential profits, but it can also lead to bigger potential losses. Due to this risk, we encourage traders to plan their trades well by making sure they employ a risk management strategy and keep learning about the market. To improve your trading skills further, you can visit the Learn section of our website where you can explore the rest of our educational tools such as our eBook, and sign up for our online webinars
Views: 143443 easyMarkets
Why I LOVE Creating Leverage vs Being Leveraged
 
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Ed Blunt shares the importance of leverage
Views: 3199 Ed Blunt
Trading with leverage | tradimo - learn to trade
 
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www.tradimo.com - learn to trade The so-called leverage allows a trader to control a much larger position with a smaller part of their trading capital than they would without leverage. Read the lesson: http://en.tradimo.com/tradipedia/Leverage/ Join tradimo.com and learn to trade for free. Read articles and watch live coachings to master your trading skills for free. We're a team of expert traders with the dream of building the best school and community for online trading.
Basic leveraged buyout (LBO) | Stocks and bonds | Finance & Capital Markets | Khan Academy
 
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The mechanics of a simple leveraged buy-out. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/corporate-debt-versus-traditional-mortgages?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/mergers-acquisitions/v/simple-merger-arb-with-share-acquisition?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Private equity firms often borrow money (use leverage) to buy companies. This tutorial explains how they do it and pay the debt. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 197549 Khan Academy
What is LEVERAGED BUYOUT? What does LEVERAGED BUYOUT mean? LEVERAGED BUYOUT meaning & explanation
 
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What is LEVERAGED BUYOUT? What does LEVERAGED BUYOUT mean? LEVERAGED BUYOUT meaning - LEVERAGED BUYOUT definition - LEVERAGED BUYOUT explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. A leveraged buyout (LBO) is a transaction when a company or single asset (e.g., a real estate property) is purchased with a combination of equity and significant amounts of borrowed money, structured in such a way that the target's cash flows or assets are used as the collateral (or "leverage") to secure and repay the borrowed money. Since the debt (be it senior or mezzanine) has a lower cost of capital than the equity, the returns on the equity increase as the amount of borrowed money does until the perfect capital structure is reached. As a result, the debt effectively serves as a lever to increase returns-on-investment. The term LBO is usually employed when a financial sponsor acquires a company. However, many corporate transactions are partially funded by bank debt, thus effectively also representing an LBO. LBOs can have many different forms such as management buyout (MBO), management buy-in (MBI), secondary buyout and tertiary buyout, among others, and can occur in growth situations, restructuring situations, and insolvencies. LBOs mostly occur in private companies, but can also be employed with public companies (in a so-called PtP transaction – Public to Private). As financial sponsors increase their returns by employing a very high leverage (i.e., a high ratio of debt to equity), they have an incentive to employ as much debt as possible to finance an acquisition. This has, in many cases, led to situations in which companies were "over-leveraged", meaning that they did not generate sufficient cash flows to service their debt, which in turn led to insolvency or to debt-to-equity swaps in which the equity owners lose control over the business to the lenders.
Views: 4799 The Audiopedia
Overnight Fees + My Life as a Panic-Selling Over-leveraged Noob
 
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Copytrading : http://etoro.tw/2jBG9pO All trading involves risk. Only risk capital you’re prepared to lose. Past performance is not an indication of future results. This content is for educational purposes only and is not investment advice. Cryptocurrencies can fluctuate widely in prices and are therefore not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Bitcoin Donations gratefully accepted here : 1PS8umTH2cTVwCjJrwtjVa8oruZJMGE944 In this video, I talk about the basics of overnight fees and weekend fees (with a little hint about how that affects trading on Etoro - buy positions on stocks don't incur overnight or weekend fees. There are some other exceptions too - check the fees page on the site for full info.) I also discuss how using too much leverage caused me to do a lot of panic selling in the beginning of my trading experience, and i lost a lot of money. Might be helpful ...
Views: 10233 Social Trading Vlog
Leveraged – The power of regular investing
 
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If you’ve got big life goals like buying a house, furthering your education, travel and retiring comfortably, you’ll need a plan to make sure you have the money you need, when you need it. Find out more about combining two powerful investment strategies – the discipline of a regular savings plan + regular monthly borrowed funds – to help you build wealth for your future For information head to www.leveraged.com.au
Views: 1162 Bendigo Bank
The Hidden Dangers of Leveraged ETFs: Why Leveraged ETFs Are Not a Long-Term Bet - Part 4
 
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Leveraged ETFs - Opportunities, Risks and Dangers. http://www.financial-spread-betting.com/Exchange-traded-funds.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! How risky are leveraged exchange traded funds? These instruments are only for day trading or holding positions for a few days at most. When buying into a leveraged ETF not only are there trading costs but in some cases you also have the interest expense of the debt used to achieve the actual leverage. But why are leveraged ETFs dangerous? The issue with leveraged ETFS is that you can end up losing all your money while waiting for the ETF to move in your direction. Let's suppose that over 50 trading days, half of those days the index you're tracking moves up by 5%, and half of those days it moves down by 5%. If you are investing in a normal unleveraged exchange traded fund, at the end of that time you will still have 93.9% of your capital. As such, you can absord that and wait till it reverses. But if you're in a 3x leveraged ETF, on down days your ETF will go down by 15%. On positive days it will go up by 15%. One up-down cycle and you end up with 2.25% less of your capital. (1.15*0.85=0.9775.). Two up-down cycles, and you have lost 4.45%. After the 50 days period only 56.6% of your capital remains. Can you really recover? That's the big issue - if an index doesn't go anywhere and is range-bound, the leveraged ETF will end up underwater. And of course if the index moves in the opposite direction to your 'bet', you could end up getting wiped out rapidly. As such you only win if a move up happens swiftly... So, that's the big problem: if an index treads water, the leveraged version will lose money. And of course, if the index goes down substantially, as it could in a bear market, you could get quickly wiped out. Basically, you only win if a move up happens quickly, which I assure you is not always the case. In this series: ETFs, What is An Exchange Traded Fund? Part 1 🙌 https://www.youtube.com/watch?v=DUv4A-y52jw Main ETFs to Trade Part 2 👍👌 https://www.youtube.com/watch?v=4zecElizm4g What are Inverse ETFs? What are Leveraged ETFs? Part 3 🙌👍 https://www.youtube.com/watch?v=zfPDpq4BaUs The Hidden Dangers of Leveraged ETFs: Why Leveraged ETFs Are Not a Long-Term Bet - Part 4 https://www.youtube.com/watch?v=M7dNVJeQ9cE
Views: 3668 UKspreadbetting
What is Leveraged Buyout (LBO)?
 
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In corporate finance, a leveraged buyout (LBO) is a transaction where a company is acquired using debt as the main source of consideration. Click here to learn more about this topic: https://corporatefinanceinstitute.com/resources/knowledge/finance/leveraged-buyout-lbo/
What is LEVERAGED RECAPITALIZATION? What does LEVERAGED RECAPITALIZATION mean?
 
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What is LEVERAGED RECAPITALIZATION? What does LEVERAGED RECAPITALIZATION mean? LEVERAGED RECAPITALIZATION meaning - LEVERAGED RECAPITALIZATION definition - LEVERAGED RECAPITALIZATION explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. In corporate finance, a leveraged recapitalization is a change of the company's capital structure, usually substitution of equity for debt. Such recapitalizations are executed via issuing bonds to raise money and using the proceeds to buy the company's stock or to pay dividends. Such a maneuver is called a leveraged buyout when initiated by an outside party, or a leveraged recapitalization when initiated by the company itself for internal reasons. These types of recapitalization can be minor adjustments to the capital structure of the company, or can be large changes involving a change in the power structure as well. Leveraged recapitalizations are used by privately held companies as a means of refinancing, generally to provide cash to the shareholders while not requiring a total sale of the company. Debt (in the form of bonds) has some advantages over equity as a way of raising money, since it can have tax benefits and can enforce a cash discipline. The reduction in equity also makes the firm less vulnerable to a hostile takeover. Leveraged recapitalizations can be used by public companies to increase earnings per share. The Capital structure substitution theory shows this only works for public companies that have an earnings yield that is smaller than their after-tax interest rate on corporate bonds, and that operate in markets that allow share repurchases. There are downsides, however. This form of recapitalization can lead a company to focus on short-term projects that generate cash (to pay off the debt and interest payments), which in turn leads the company to lose its strategic focus. Also, if a firm cannot make its debt payments, meet its loan covenants or rollover its debt it enters financial distress which often leads to bankruptcy. Therefore, the additional debt burden of a leveraged recapitalization makes a firm more vulnerable to unexpected business problems including recessions and financial crises.
Views: 1528 The Audiopedia
The Leveraged Lifestyle
 
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There are few things more freeing than than the power of financial freedom—every month, for decades. It changes the entire game of life. Yet most people have no way to achieve it. Watch author Scott Ohlgren describe a method of creating this missing nutrient of our dreams, done from our homes, just 4 to 8 hours a week, using little else than our laptops, free video conferencing that connects you every week to our small team that is building an international network.
Views: 6967 Lingzhi Academy
How To Use 1Fox Exchange - Leveraged Cryptocurrency Trading (Available To US Residents)
 
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Create your 1fox account here: https://1fox.com/?t=o1 follow my progress using that link. Link to the profit/loss calculator: https://1fox.com/?c=en/content/profit... Follow me on twitter to see my calls on other coins and more! https://twitter.com/Cryptoub
Views: 972 Crypto UB
BITCOIN ANALYSIS // AND LEVERAGED TRADING FOR U.S. CITIZENS WITHOUT VPN USING 1FOX
 
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- Join the Free Trading Group Chat: https://discord.gg/aM5W7YH - Learn How to Day Trade: https://chartbulls-trading.teachable.com/p/chartbulls-trading-school -Get 10% off Trades on Bitmex: https://www.bitmex.com/register/Ldt0DE - Learn about our community: https://chartbullstrading.com - Get 10% off fees for leveraged trading: https://www.bitmex.com/register/Ldt0DE For those who are interested in Trading & Investing, I encourage you to join my Discord chat of over 2000 members for free! If you want to learn with me personally, I encourage you to take my Trading School Course. Thank you for the support, the best way to reach out to me is through our private discord chat, please DM me and I'll respond to you. If you have any suggestions for future videos such as Day Trading, Investing, Crypto & bitcoin, Entrepreneurship, Online Marketing, Online Sales or fun daily vlogs please let me know. My goal is to make my content as good as it possible can be every day. DISCLAIMER: Please note that i do not ask for any information. I enMy videos are for entertainment purposes only. If you have any questions please to message me as i would love to be a part of your success.
Views: 495 Matthew Miller
Leverage Analysis An Introduction
 
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Did you liked this video lecture? Then please check out the complete course related to this lecture, FINANCIAL MANAGEMENT – A COMPLETE STUDYwith 500+ Lectures, 71+ hours content available at discounted price(10% off) with life time validity and certificate of completion. Enrollment Link For Students Outside India: https://bit.ly/2PmYtDf Enrollment Link For Students From India: https://www.instamojo.com/caraja/financial-management-a-complete-study-online/?discount=inyfmacs2 Our website link : https://www.carajaclasses.com Indepth Analysis through 300+ lectures and case studies for CA / CFA / CPA / CMA / MBA Finance Exams and Professionals ------------------------------------------------------------------------------------------------------------------------ Welcome to one of the comprehensive ever course on Financial Management – relevant for any one aspiring to understand Financial Management and useful for students pursing courses like CA / CMA / CS / CFA / CPA, etc. A Course with close to 300 lectures explaining each and every concept in Financial Management followed by Solved Case Studies (Video), Conversational Style Articles explaining the concepts, Hand outs for download, Quizzes and what not?? ------------------------------------------------------------------------------------------------------------------------ This course is about Financial Management. By taking up this course, you will have opportunity to learn the all facets of Financial Management. Knowledge on Financial Management is important for every Entrepreneur and Finance Managers. Ignorance in Financial Management can be disastrous because it would invite serious trouble for the very functioning of the organisation. This is a comprehensive course, covering each and every topic in detail. In this course,you will learn the Financial Management basic concepts, theories, and techniques which deals with conceptual frame work. Following topics will be covered in this course a) Introduction to Financial Management (covering role of CFO, difference between Financial Management, Accounting and other disciplines) b) Time Value of Money c) Financial Analysis through Ratios (covering ratios for performance evaluation and financial health, application of ratio analysis in decision making). d) Financial Analysis through Cash Flow Statement e) Financial Analysis through Fund Flow Statement f) Cost of Capital of Business (Weighted Average Cost of Capital and Marginal Cost of Capital) g) Capital Structuring Decisions (Capital Structuring Patterns, Designing optimum capital structure, Capital Structure Theories). h) Leverage Analysis (Operating Leverage, Financial Leverage and Combined Leverage) I) Various Sources of Finance j) Capital Budgeting Decisions (Payback, ARR, MPV, IRR, MIRR) k) Working Capital Management (Working Capital Cycle, Cash Cost, Budgetary Control, Inventory Management, Receivables Management, Payables Management, Treasury Management) This course is structured in self learning style. It will have good number of video lectures covering all the above topics discussed. Simple English used for presentation. Take this course to understand Financial Management comprehensively. Mandatory Disclosure regarding course contents: This course is basically a bundle of following courses: a) Time Value of Money b) Cash Flow Statement Analysis c) Fund Flow Statement Analysis d) Finance Management Ratio Analysis e) Learn how to find cost of funds f) Learn Capital Structuring g) Learn NPV and IRR Techniques h) Working Capital Management. If you are purchasing this course, make sure you don't purchase the above courses. Also note, this course is also bundled in comprehensive course named Accounting, Finance and Banking - A Comprehensive Study. So if you are purchasing above course, make sure you don't purchase this course. • Category: Business What's in the Course? 1. Over 346 lectures and 48 hours of content! 2. Understand Basics of Financial Management 3. Understand Importance of Time Value of Money 4. Understand Financial Ratio Analysis 5. Understand Cash Flow Analysis 6. Understand Fund Flow Analysis 7. Understand Cost of Capital 8. Understand Capital Structuring 9. Understand Capital Budgeting Process 10. Understand Working Capital Management 11. Understand Various sources of Finance Course Requirements: 1. Students can approach with fresh mind Who Should Attend? 1. Any one who wants to learn Financial Management comprehensively 2. MBA (Finance) students 3. CA / CMA / CS / CFA / CPA / CIMA
Views: 54383 CARAJACLASSES
How to work a Leveraged Buy Out or LBO - How to Buy a Business - David C Barnett
 
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Learn to buy a business here: http://www.BusinessBuyerAdvantage.com Related Article: I got a great piece of feedback the other day on YouTube. Wayne tells me that ‘any idiot’ can put a deal together to buy a business without using their own money otherwise ‘leveraged buy outs’ would not exist. This week I’ll explain to you what a leveraged buy out is, how it works, and we’ll see if a person with no money could actually pull it off. I know that you’re all anxious to find out if you’d be an idiot under Wayne’s definition. It’s all in this video right here: https://youtu.be/UrBLOtRY0OI Learn how to buy a business successfully with my Business Buyer Advantage Program. You can access the course at www.BusinessBuyerAdvantage.com and learn more about how it works from this video I made a few weeks ago: https://youtu.be/ooixMSaFf6Y Please remember to like and share this article, it’s the only way the people who run the internet have of knowing if the content is any good or not. The more you share, the more likely someone who needs this information will be able to find it. Go to www.DavidCBarnett.com and sign up for my weekly e-mail. Easy unsubscribe at any time as I use MailChimp and I’m not interested in harassing people who don’t want to hear from me. If you’re into podcasts, you can now easily subscribe to the audio of all my new videos on iTunes. This summer & fall I’ll be in St. John’s, Newfoundland, NYC, Orlando & Toronto. Find out more and sign up at http://davidbarnett.eventbrite.com Thank you and I’ll see you next time.
Views: 8327 David Barnett
Operating Leverage: Calculation and Meaning
 
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You will learn what the concept of “operating leverage” means in this lesson, including several different methods to calculate it and interpret it for real companies. You’ll also learn why it sometimes doesn’t tell you as much as you think it does. http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Table of Contents: 0:57 What Does Operating Leverage Mean? 5:16 Formulas to Calculate Operating Leverage 15:25 How to Interpret Operating Leverage in Real Life 20:21 Recap and Summary What Does Operating Leverage Mean? Operating leverage relates to a company’s fixed vs. variable costs – a company with a higher percentage of fixed costs is said to have “high operating leverage,” because as its sales grow, more of those sales trickle down into operating income. For example, software companies tend to have high operating leverage because most of their spending happens upfront in the product development process. Selling each additional copy of a software product costs very little since the distribution is almost free and there are no “raw materials.” On the other hand, consulting or services companies have low operating leverage because most of their spending is variable: as sales increase, their spending increases in lockstep, and as sales decrease, their spending also decreases. So the end result is that operating leverage introduces higher potential rewards, but also greater risk. If a company’s sales increase, it helps to have higher operating leverage. But if they decrease, higher operating leverage hurts them because they won’t be able to reduce spending as quickly. Formulas to Calculate Operating Leverage There are several different formulas for calculating operating leverage: Formula 1: Fixed Costs / (Fixed Costs + Variable Costs) The problem with this one is that most companies don’t spell out what is a fixed vs. variable cost in their filings. Formula 2: % Change in Operating Income / % Change in Sales Formula 3: Net Income / Fixed Costs Formula 4: Contribution Margin / Operating Margin In practice, we tend to use the second formula: the % change in operating income divided by the % change in sales, because it’s the easiest one to apply when you have limited information. However, the other formulas can be useful if you have additional insight into the company’s fixed vs. variable costs. How to Interpret Operating Leverage in Real Life This metric is MOST meaningful when you calculate it for companies in the same industry with roughly the same operating margins. So it doesn’t make sense to use it to compare a software company to a manufacturing company, or to compare a biotech startup to a mature media company. As a company’s operating leverage increases, each *percentage* of sales growth will translate into a higher *percentage* of operating income growth. Consider Company A, with revenue of $1 billion, operating income of $200 million, and operating leverage of 2.0x, and Company B, with revenue of $1 billion, operating income of $200 million, and operating leverage of 1.0x. "Operating leverage" means that when Company A’s revenue increases by 10%, its operating income will increase by 20%, so it will have operating income of $240 million on revenue of $1.1 billion. On the other hand, Company B’s operating income will increase by only 10%, so it will rise to $220 million on revenue of $1.1 billion. In the “Upside” case when sales increase, this is positive because Company A will earn more operating income from those additional sales. But if sales decrease, Company A is worse off because it can’t cut its expenses to match its falling sales to the same degree that Company B can. So it’s similar to debt in leveraged buyouts: more debt increases the potential rewards, but also the risk. On balance, most investors prefer companies with high operating leverage simply because it makes it easier to earn out-sized returns – but it also depends on the investment firm’s strategy, the industry, and the companies involved. RESOURCES: http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-16-Operating-Leverage.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-16-Operating-Leverage.xlsx
8. Theory of Debt, Its Proper Role, Leverage Cycles
 
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Financial Markets (2011) (ECON 252) Professor Shiller devotes the beginning of the lecture to exploring the theoretical determinants of the level of interest rates. Eugen von Boehm-Bawerk names technical progress, roundaboutness, and time preference as the crucial factors. Professor Shiller complements von Boehm-Bawerk's analysis with two of Irving Fisher's modeling approaches, the view of the interest rate as the equilibrium variable in the savings market and the perspective of simple Robinson Crusoe economies on the determination of interest rates. Subsequently, Professor Shiller focuses his attention on present discounted values and derives the price for discount bonds, consols, annuities, as well as corporate bonds. His treatment of the term structure of interest rates leads him to forward rates and the expectations theory of the term structure of interest rates. At the end of the lecture, he offers insights on usurious loan practices, from ancient times until today, and describes the improvements in consumer financial protection that have been made after the financial crisis of the 2000s. 00:00 - Chapter 1. Introduction 01:24 - Chapter 2. Theories for the Determinants of Interest Rates 28:11 - Chapter 3. Present Discounted Values, Compounding, and Pricing Bond Contracts 47:50 - Chapter 4. Forward Rates and the Term Structure of Interest Rates 01:03:29 - Chapter 5. The Ancient History of Interest Rates and Usurious Loans 01:11:08 - Chapter 6. Elizabeth Warren and the Consumer Financial Protection Bureau Complete course materials are available at the Yale Online website: online.yale.edu This course was recorded in Spring 2011.
Views: 98267 YaleCourses
Over leveraged - defined
 
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An organisation is said to be over leveraged if it has borrowed more money than it can pay back. - created at http://www.b2bwhiteboard.com
Views: 305 B2Bwhiteboard
Triple leveraged Index ETFs Myths and Realities
 
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leveraged ETFs Myths and Realities
Views: 1951 Synapse2k
How to Get Rich: Exploit Business Leverage
 
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http://www.patrickschwerdtfeger.com/sbi/ This video talks about how to become wealthy and it's all about business leverage. Make sure you're on the right side of the leverage equation. Make sure you're the one doing the leveraging, not the one being leveraged. There has never been more leverage in the business world and those who find ways to leverage the opportunities available will reap huge rewards as a result.
Views: 9452 Patrick Schwerdtfeger
Don't Be Over Leveraged in 2017
 
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Windsor-Essex County Real Estate Sellers' Market - Don't take on excessive debt if you don't have to. Consider the fact that there are economic business cycles and you want to be caught on a potential downturn.
Views: 110 Lou Joseph - RE/MAX
How can blockchain be leveraged to create value | Data Economy
 
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By 2025, 10% of global GDP is expected to be stored using blockchain technology. Kelly LeValley Hunt is the Global Vice President Sales at blockchain company BlockApps and she has spoken to Data Economy on the ins and outs of this transformational technology, including how data centre operators can leverage blockchain.
Views: 62 Data Economy
The advantages of trading leveraged ETFs | IG
 
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Hector McNeil from WisdomTree Europe looks at Leveraged (Exchange Traded Funds) ETFs, what they are and the benefits of trading them. ETFs, like investment funds, provide exposure to a portfolio of financial instruments, but they’re traded just like shares on a stock exchange. Some of the benefits of trading ETFs include: • Cost-efficiency • Gaining access to hard-to-reach markets • Increased transparency and flexibility Website: https://www.ig.com/uk/etfs-trading?CHID=9&SM=YT Twitter: https://twitter.com/IGcom Facebook: https://www.facebook.com/IGcom Google Play: https://play.google.com/store/apps/details?id=com.iggroup.android.cfd&hl=en_GB LinkedIn: https://www.linkedin.com/company/igcom Google +: https://plus.google.com/u/0/108999047065291192896 IG is a global leader in retail forex, providing fast and flexible access to over 10,000 financial markets – including indices, shares, forex, commodities . Established in 1974 as the world’s first financial spread betting firm, we are now the world’s No.1 provider of CFDs (Contract for Difference) and a global leader in forex. We also offer an execution-only share dealing service. All trading involves risk. Please take care to manage your exposure. The comments in this video do not constitute investment advice and IG accepts no responsibility for any use that may be made of them.
Views: 1361 IG UK
What is Leverage in Trading - Hindi Tutorial
 
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In this Video Edward Ji explains, what is Leverage in Trading? be it Stock, Commodity or Forex Trading, Leverage plays a pivotal part. Understanding leverage and margin call is very important. Without Leverage in trading, in today's world Trading will not be lucrative anymore. It is this leverage that makes trading all the more excited, lucrative and risky at the same time.
Views: 119821 MarketGurukul
Leveraged Buyouts (LBOs) – CH 4 Investment Banking Valuation Rosenbaum
 
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A leveraged buyout (LBO) is the acquisition of a company, division, business, or collection of assets using debt to finance a large portion of the purchase price. The remaining portion of the purchase price is funded with an equity contribution by a financial sponsor. The ability to leverage the relatively small equity investment is important for sponsors to achieve acceptable returns. The use of leverage provides the additional benefit of tax savings realized due to the tax deductibility of interest expense. Questions answered in the video include? - What are private equity firms and how do they invest? - How does leverage impact the equity returns of a sponsor? - What is a leveraged buyout (LBO)? - How does changing the financing mix change overall returns? - What is the internal rate of return (IRR)? - What are the characteristics of a strong LBO candidate? - What are the available sources of LBO financing? For those who are interested in buying the Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions by Joshua Rosenbaum and Joshua Pearl, follow the Amazon link below; https://www.amazon.ca/Investment-Banking-Valuation-Leveraged-Acquisitions/dp/1118656210 If you have any other questions, please comment below. If you enjoyed the video and found it helpful, please like and subscribe to FinanceKid for more videos soon! For those who may be interested in finance and investing, I suggest you check out my Seeking Alpha profile where I write about the market and different investment opportunities. I conduct a full analysis on companies and countries while also commenting on relevant news stories. http://seekingalpha.com/author/robert-bezede/articles#regular_articles
Views: 2683 FinanceKid
Cost of Capital   Leveraged Beta
 
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At the end of the video, I plugged the wrong number in for the market risk premium. I used the leveraged beta and didn't change the unleveraged beta. Should be Re = 3% + 1.5821(15%) - the answer given is correct. Thanks to a viewer for pointing this out. More videos at http://facpub.stjohns.edu/~moyr/videoonyoutube.htm
Views: 5551 Ronald Moy
Using Leverage Vs. Being Leveraged
 
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http://www.johnchow.com Leverage can make you rich. However, most people don't use it enough. Worst, most people are being leveraged, and that keeps your poor.
Views: 754 John Chow
Leverage And How To Use It Properly - Real Estate Investtment Tips
 
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For an experienced SF Bay Area real estate agent visit http://iLiveInTheBayArea.com Like me on Facebook: http://fb.com/iLiveInTheBayArea Thumbs up, favorite, share, subscribe and make a comment! One of the most hotly debated topics I discuss with my clients is the concept of using a loan to assist in a purchase. The concept of using other people's money in order to finance a purchase is called leverage....and there's quite a few reasons why this topic is debated so frequently. Some of my clients are either in their later years near retirement and don't want the responsibility of a mortgage payment. Some of them want to see a higher return and maybe don't want to tie up all their cash to buy the type of property their interested in. Some don't want a mortgage so they can have full control in case they do decide to sell later. Some just want to spread their investment around so it's not tied up in one single project. I'm going to give you a quick rundown of what I personally feel is a responsible way to look at leverage... First let me show you how using leverage can assist in both your return and your risk... To make numbers easy, let's say you have $1M to buy a property. While searching you notice you could buy a $1m that makes about $100k/year. If you so choose to buy this property all cash and sell it in 5 years for the same $1M price paid for it, you will make a fairly straightforward 10% return. But let's take a look at how much of a return you could make by putting 30% down with a 5% interest rate. Now, your mortgage payment is a bit under half of the $100k per year, so you take home only about $55,000. And of course if you sell it, you're going to have to repay the loan in full. Looking at this, your return went from 10% in an all cash deal, to a cash on cash return of over 18% with a nearly 21% internal rate of return. So how did it double? Well you have to keep in mind, you were making 10%...and you're BORROWING someone else's money at 5%... Imagine you borrow $5 from a friend who simply wants $6 in return. You then go out and buy a DVD from a store and then immediately sell it to someone else for $10. You now have made a $4 profit after you pay your friend back. This is an example of using positive leverage. Using other people's money to make a profit which you couldn't have made before. In our $1M example, this also opens up a few doors. Remember, you only spent $300k to buy this $1M property -- meaning you still have $700k left over. Now you could go and buy two more additional properties. This also helps spread your risk around. What if one of the buildings is an apartment complex, and the crime rate spikes in the area making it harder to rent...if all of your $1m is in that single property, you are now at the full mercy of what happens to just that one property. It's as if you just threw all your money into a single stock -- if that one single stock does poorly and you haven't diversified, you don't have anything else to fall back on. Of course leverage can also free up capital. As I discussed in my "Lease vs. Own" video, if you own your property outright and are looking to expand but don't have the funds, you can use leverage properly and lease the space rather than owning it, or borrow against it and expand. Again as an example, if you have a $1m property that you own outright but want to expand your business to other areas and grow, it may be sensible to sell your property to an investor and pay them rent...or it may also be sensible to refinance the property and pay a mortgage and use the proceeds to expand. Again, leverage must be responsibly. In the examples I gave, it would make no sense to have a $95k mortgage with only $100k in income. It just doesn't make sense to barely be able to cover the mortgage payment -- that's too much risk! Also in the lease vs. own example, if you CANT expand as a company, why would you want to put your property at risk by selling and leasing back or even taking out a large mortgage that may be squandered trying if here is no set expansion plan? Leverage must be used properly, and there is no exact formula as to how much can be considered risky. It is going to depend on you as an investor and it's going to depend on the local market and property conditions. However, if used properly, it's a great investment tool that can both spread your risk and increase your return...now that's good to know. Contact Davide Pio Today | SF Bay Area Real Estate http://iLiveInTheBayArea.com | 510-815-2000
Advice for highly leveraged landlords
 
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Many landlords in negative equity/negative cash flow have survived through low interest rates. Phil Davison of Negative Equity UK has some recommendations for these landlords in how to stress test their position by tracking forwards and assessing the viability of their portfolio. Share this video: https://youtu.be/v0mpf8_RMHo Subscribe To Our Channel For Updates http://www.youtube.com/subscription_center?add_user=propertytribes The mission of Property Tribes is simple: To ensure a positive experience of the private rented sector for all. Property Tribes is for anyone who has an interest in property investment, landlord-ism, or the private rented sector. It is a friendly and professional community that offers a huge amount of support and advice for landlords, no matter what their level of experience. It is free to use and members receive a bi-weekly emailer newsletter to ensure that they are kept up to date with the landlord latest. Advice for highly leveraged landlords Other Videos To Watch: Profile of a landlord who may struggle to survive https://youtu.be/rPE2PdPdCUU Visit Our Website: http://www.propertytribes.com Connect With Us: http://facebook.com/propertytribesnewsfeed http://twitter.com/4_walls http://twitter.com/nicktadd Advice for highly leveraged landlords
Views: 1283 PropertyTribes
Drone Technology Can Be Leveraged In Agriculture - Ngozi Okonjo-Iweala
 
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For more information log on to http://www.channelstv.com
Views: 292 Channels Television
Entrepreneur, Gordon Bizar, explains to entrepreneurs leveraged buyout (LBO).
 
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http://gordonbizar.com http://gettingrichyourway.com Leveraged Buyout (LBO) has been taught at Bizar Financing for over 30 years. Mr.LBO, Gordon Bizar, explains how he bought his first business with no cash of his own to entrepreneurs. As a business coach, Gordon Bizar, has been a business mentor to over 300,000 entrepreneurs teaching how to use leveraged buyout (LBO) in the purchase of a business. So if you've always wanted to be your own boss and do not know how to purchase a business using leveraged buyout (LBO) learn how to get into that business from Entrepreneur, Gordon Bizar.
Views: 7132 MrLBOgordonBizar
Should I Pay Cash or Leverage My Real Estate Investments? [#AskBP 027]
 
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Ah... the classic debate. Cash vs. leverage. Which is better? In this episode of the BiggerPockets #AskBP Podcast, Brandon shares his thoughts on the debate and provides some interesting commentary that will help you decide the best path for your investing. Stay tuned! http://www.biggerpockets.com/renewsblog/2015/05/26/askbp-027-should-i-pay-cash-or-leverage-my-real-estate-investments/
Views: 30100 BiggerPockets
Trading Leveraged ETFs For Max Profits
 
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Trading Leveraged ETFs For Max Profits walks through the risks and benefits of trading these highly speculative 2x and 3x leveraged bull and bear ETFs. ► Subscribe to our YouTube channel: http://bit.ly/2kLE2Pz ORIGINAL ARTICLE LINK which has been updated with new examples, a section on volatility decay, contango impact, and more: http://www.thetraderisk.com/trading-leveraged-etfs-for-max-profits SKIP AHEAD: What are leveraged ETFs? 1:44 How are leveraged ETFs constructed? 3:24 What are the risks of trading leveraged ETFs? 5:09 What are the benefits of trading leveraged ETFs? 13:36 My strategy for trading leveraged ETFs 17:55 Universe of leveraged ETFs 26:00 At The Trade Risk, we help traders make money in the stock market. Learn More: https://www.theTradeRisk.com Newsletter: https://www.theTradeRisk.com/newsletter Trade Alerts: https://www.theTradeRisk.com/swing-trade-alerts Market Dashboard: https://www.theTradeRisk.com/market-health-dashboard Breadth Cycles: https://www.theTradeRisk.com/stock-market-breadth-cycles Follow Us: https://www.twitter.com/evanmedeiros Thank you for watching!
Views: 12835 The Trade Risk
How to Use Leveraged ETFs
 
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A set of defined reactions is the best way to use the high volatility of leveraged ETFs for greater profit. Contrary to media warnings, leveraged ETFs beat the market over many time periods even with a simple buy-and-hold approach. A look at my performance tables proves it. We can improve upon their performance by running 2x and 3x leveraged ETFs through defined reactions that extract profit from their higher highs and add capital to their lower lows. ___________________________ Want more information like this? Please subscribe to this channel! To review the long-term performance of buying and holding leveraged funds, please visit my Strategies page: http://jasonkelly.com/resources/strategies/ Thank you for watching!
Views: 7455 The Kelly Letter
Leverage or Be Leveraged
 
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Direct your life or it will be directed for you
Benefits of Implementing a Leveraged ESOP
 
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http://watsontaxlaw.com Learn about the benefits of implementing a leveraged Employee Stock Ownership Plan (ESOP). Selling to an ESOP and how a selling shareholder can obtain tax-deferral in an ESOP transaction is discussed and illustrated. If you have questions about your business and tax laws, call Watson Tax Law at (949) 482-3992 to discuss your situation
The Pros & Cons of Using Leveraged ETFs In Your Trading & Investing
 
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This video attempts to both debunk as well as confirm some of the negative stigmas associated with buying & holding leveraged ETFs for more than a day trade. Real-world examples are used with two of the most notorious offenders when it comes to the price decay that can result when holding a leveraged ETF for an extended period of time, LABU & LABD (3x bullish & bearish biotech ETFs) as well as NUGT & DUST (3x gold miners ETFs)
The expanding Bitfinex & other Bitcoin leveraged Longs, will be forced sellers soon
 
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http://themarketsniper.com Trader, Technical Analyst & Teacher
Views: 3601 The Crypto Sniper
TRADING FOREX WITH LEVERAGE (WHAT IS IT? HOW DOES IT WORK?)
 
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In trading and particularly in forex trading, often we find our trading accounts offer leverage (typically 50:1 in the US and 100:1 or 200:1 elsewhere - although more is also available). However, a lot of new traders wonder what this is. It can be a bit intimidating to encounter leverage trading and margin accounts if you don't know how it works and what you're letting yourself in for! In this video, Nicholas explains everything you need to know about trading forex with leverage! ================ SUBSCRIBE FOR MORE TRADING VIDEOS: https://www.youtube.com/user/duomoinitiative?sub_confirmation=1 ================ JOIN THE INNER CIRCLE FOR FREE: http://freelearntotrade.duomoinitiative.com ================ GET OUR FULL ONLINE COURSE: http://www.duomoinitiative.com/onlinecourse ================ Find us here: Website: http://www.duomoinitiative.com Facebook: http://www.facebook.com/duomoinitiative Twitter: http://twitter.com/duomoinitiative Nicholas Twitter: http://twitter.com/nikipuri Instagram: http://instagram.com/duomoinitiative
Leveraged Foreign Exchange Trading Only the Best Brokers Work
 
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For everyone who is looking for high leverage and a trusted broker. Visit this now. https://www.toptradingsystems.com/go/recommendation/ Leveraged Foreign Exchange Trading is currently turning into a lifeline for lots of people. Foreign exchange currency trading, also called forex trading, has come to be a favorite investment choice. Forex is among the most well-known markets for speculation throughout the world, as it's a tremendous market, liquid, and currencies have the characteristic of moving in trends. Additionally, Forex isn't bound by any 1 control agency, meaning that Forex is the sole true free market economic trading system available today. An excellent suggestion for your trading Forex is to get started with small quantities, and a minimal leverage. If you're inexperienced or undisciplined, you might not be in a position to succeed in Leveraged Foreign Exchange Trading. Forex trading isn't a system to acquire rich in a brief moment. Yes, Forex market trading is still the best method to produce unimaginable gains. Recently, a growing number of folks are looking towards trading for a kind of investment together with a kind of business. Forex trading provides high liquidity, a competitive in addition to a 24 hour industry. It is a hard activity, difficult and not suitable for everyone. Leveraged Foreign Exchange Trading might not be as well called stock trading in fact it is truly far more compact than the stocks and even the commodities markets. leverage risk fx leverage currency broker what is leverage tips for brokers high leverage how much leverage forex brokers pip calculator forex account best leverage forex leverage lot size high leverage brokers high leverage trading trading online foreign exchange broker best spreads zero pips top broker https://www.youtube.com/watch?v=TW82_U2c6L4
Views: 1156 Top Trading Systems
Death by Leveraged ETFs - Warning About Exchange Traded Funds!
 
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Exchange traded funds (ETFs) are just like stocks, but there is a major problem with them. Subscribe: https://www.youtube.com/user/PeterLeedsPennyStock Do not buy or sell any ETF until you watch this warning. Subscribe to our channel, to learn more about investing, penny stocks, and profits from high-quality, low-priced shares: https://www.youtube.com/user/PeterLeedsPennyStock ETFs are a lot like a mutual fund, in that they hold a group of investments (stocks + bonds). The beauty is that they trade just like stocks, and have lower commissions, and you can trade any time. Each ETF is designed to mimic a specific investment or group of investments. So, for example, GLD attempts to copy the movements of gold prices. If you think gold will go higher, you can buy GLD. If you believe the economy of Africa will grow, you could buy AFK, if you want more exposure to Germany, you could purchase EWG, and so on. Warning number 1, and this isn't what I need to tell you about in this video, sometimes trading can be thin, so use limit orders rather than market orders if you are going to trade them, especially true in the very early or very last trading minutes each day. Anyway, here is the problem with ETFs which can cost you a huge amount of money. ETFs are actively managed, being continually rebalanced so that their holdings reflect the intention of the ETF. For example, INDA is meant to mirror the action of a wide range of companies in India. It involves 85% of the Indian stock market, and needs to be adjusted on a daily basis to make sure it is staying true to its purpose. With these adjustments comes a small management fee. Typically this expense will be very small, usually a fraction of a percent, and is typically less than a common mutual fund. - straight-up ETFs are pretty good, but leveraged ETFs will destroy your investment. - if tracking oil prices, USO will move very similarly to oil. If oil goes up 10%, the ETF may only rise 9.8%. This slight loss is barely noticeable, and it is called slippage. Not a huge deal, but this happens every day. When you get into leveraged ETFs, this becomes a major problem. For example, UWTI is designed to provide 3 times the return of WTI oil. If WTI goes up 1%, UWTI tries to rise 3%. Likewise, if WTI falls 1%, UWTI would fall about 3 times that much. The problem is slippage. In reality if WTI rises 2%, UWTI is designed to climb three times that much, so 6%. However, in reality it may only gain 5.95%, for example. Then, if WTI falls 2%, it is back to where it originally started, but UWTI is designed to fall 3 times that amount, or 6%. In reality, it will likely fall a tiny bit more than 6. These slight shortfalls get applied every day, so if you lose a fraction of your investment, again and again and again, you are suffering a slow bleed. You probably wouldn't even notice it on any single day, but that is why the long term charts of any leverage ETF are always in a slow, steady downtrend. ETFs, especially the leveraged ones, are great for making a very short term call, but should never be used for long term investing. For example, if you expect oil prices to spike, you could play it by buying UWTI, but do it only as a short term trade. If you hold for weeks or months, you will almost certainly lose . Protect yourself when trading ETFs. Consider avoiding buying or selling in the first few or final few minutes. And do not hold ETFs for extended lengths of time, especially the leveraged ones. . Get More From Peter Leeds: YouTube: https://www.youtube.com/user/PeterLeedsPennyStock HOME = https://www.peterleeds.com/ .... Facebook = http://bit.ly/1t4Tifo Twitter = https://twitter.com/peter_leeds Penny Stocks for Dummies = http://amzn.to/1WyGaLo ... E-Mail: [email protected] Phone: 1.866.695.3337 .
Views: 31670 Peter Leeds
DEBT TO CASH FLOW? (Let's Talk About Leverage in Finance!)
 
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Matthew Pillmore, president of VIP Financial Education, is again joined by real estate expert Kevin Amolsch of Pine Financial, self leadership expert KellyAnne Zielinski of Self Leadership Global, and personal finance expert Joe McKowen, to discuss how they each have utilized leverage in their financial plan. They dive into how leverage is used as an entrepreneur, in small business growth, in real estate and investing in opportunities. In this episode, we take a popular question from our recent live Q&A, just in case you didn't catch it (considering it is over 2 hours long!). Comment below with any leverage, debt, banking and borrowing, finances, investing, and/or lending question you'd like us to answer in our next live Q&A or possibly in our next video! Don't forget to sign up TODAY for your exclusive one on one consultation at: http://www.FreeCoachingCalendar.com Check out Kevin's channel PineFinancial: https://www.youtube.com/user/pinefinancial/videos Check out KellyAnne's channel Self Leadership Global: https://www.youtube.com/user/TheWealthyWord Have you checked out our ongoing contest?? CONTEST RULES: In order to be eligible for the ongoing contests you must: A) Be Subscribed B) Comment on this video (We’d love to hear what you’ve learned from our channel and how it is impacting you!) Each time you comment on a new video your name will be entered into the contest drawing, so the more you comment on the videos, the better your chances of winning! You can also gain additional entries by sharing our video on your social media accounts or by commenting on our Instagram or Facebook accounts. CONTEST PRIZES: 1: $25 Amazon Gift Cards a) 1 winner selected each week for next 24 weeks. 2: 2 Hour Skype Coaching Session a) 1 winner selected each month for next 5 months. b) To be considered: - Must have a MINIMUM of $500 average cash flow each month. No exceptions. 3: GRAND PRIZE - 2 Night Trip For Two to Denver and an Afternoon With Mr. Pillmore a) 1 winner selected first week of October. b) To be considered: - Must have a MINIMUM of $500 average cash flow each month. No exceptions. - Win a 2 hour Skype session with Mr. Pillmore. Current coaching members are also eligible for the contest! Our coaching costs can change with demand. To see our current pricing please watch this video: https://www.youtube.com/watch?v=HbVLmCvFjoI Want more actionable financial tips and tricks like this one? Check out our YouTube channel here https://www.youtube.com/channel/UC45hHuqWfdi7TIZg0RDG9_g Make sure to check out our social channels for more insight and industry news! Facebook - https://www.facebook.com/VIPFinancialEducation/ Instagram - https://www.instagram.com/vipfinancialed/ Instagram (Lifestyle) - https://www.instagram.com/vipfinancialedlifestyle/ Twitter - https://twitter.com/VIPFinancialEd LinkedIn - https://www.linkedin.com/in/vipfinancialed/ BBB A+ Rating - https://www.bbb.org/denver/business-reviews/financial-services/vip-enterprises-llc-in-westminster-co-90024254/ Complimentary services and products mentioned in our videos are available for a limited time only and are not guaranteed at the viewing of this video. VIP Financial Education provides resources for educational purposes only. Our education is not a substitute for legal, tax, or financial advice and results vary. VIP Financial Education encourages viewers to do their homework before taking any financial action. VIP Enterprises, LLC may from time to time earn commissions by recommending various products, services, and programs.
Views: 2897 VIPFinancialEd
Analyst Says REITs' Capital Structures Appropriately Leveraged
 
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Luke Zubrod, director of risk and regulatory advisory services with Chatham Financial, joined REIT.com for a video interview during REITWise 2014: NAREIT's Law, Accounting and Finance Conference held in Boca Raton, Fla. Zubrod was asked about the dialogue surrounding the appropriate level of leverage for REITs and the stakes related to the decisions that REITs make regarding their interest rate exposure. "REITs as an industry pay close attention to interest rate risk, and that's true of any industry that has a predominance of investment in physical assets, industries that tend to be more mature, companies that tend to be more mature," Zubrod said. "Take that in contrast to industries that are involved in professional services or have intangible products or are less mature as an industry—say, technology start-ups, for example. You don't have nearly as many interest rate risk conversations with companies like that. That's generally because they have much less leverage. Because REITs fit in that former category of physical assets and higher maturity, it supports more debt generally and interest rate risk becomes important for anyone with higher leverage." Zubrod also discussed the right mix of fixed- and floating-rate debt that should be held on REITs' balance sheets. "The way that we can analyze if someone is exposed to short-term interest rate risk is to look at the percentage of fixed-rate debt compared to the percentage of floating-rate debt that a company has," he said. "REITs as an industry are generally very well positioned and generally conservative in skewing towards fixed-rate debt. If we look at REITs, there's really a range between about 75 percent fixed-rate debt to 95 percent fixed-rate debt. The average REIT really falls right about in the middle of that range, about 84 percent. If there were a severe shock to short-term interest rates, it would not be an extraordinary burden on REITs from the perspective of risk. The less obvious and more important risk to REITs is their exposure to long-term interest rates. REITs are buy-and-hold investors, which really permits them to enter into long-term fixed-rate debt." By Allen Kenney
Views: 111 Nareit1
3x Leveraged ETF Decay Explained Via NUGT
 
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Some visual real-world examples of the decay suffered by 3x leveraged ETFs and how to use that decay to your advantage.
Existing Debt in Leveraged Buyouts: Why It Doesn't Matter
 
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In this tutorial, you’ll learn why a company’s existing Debt and capital structure don’t make (much of) a difference in leveraged buyouts and LBO models, despite guides that claim the contrary. You’ll also learn about a few exceptions where these items do make a small difference. Table of Contents: 6:33 Exception #1: Call Premiums 10:00 Exception #2: Lender Familiarity 11:50 Recap and Summary Lesson Outline: For the most part, a company’s existing capital structure does NOT matter in leveraged buyout scenarios. That’s because in an LBO, the PE firm completely replaces the company’s existing Debt and Equity with new Debt and Equity. Let’s say that a PE firm wants to acquire a company for 10x EV / EBITDA using 5x Debt / EBITDA. Regardless of whether a company has 0 Debt or 4x Debt / EBITDA before the LBO, it will still have 5x Debt / EBITDA after the LBO. The PE firm will also have to contribute the same amount of equity to the deal (5x EBITDA). Existing Debt would affect things only if it somehow increased the Purchase Enterprise Value. But that line of thinking is incorrect: If a company raises additional Debt, both its Cash and Debt balances increase, canceling each other out, and resulting in the same Enterprise Value. So, unless you have incorrect beliefs about the concept of Enterprise Value or the pricing for leveraged buyouts, existing capital structure doesn’t matter. However, there are a few small exceptions where it makes A BIT of a difference. Exception #1: Call Premiums Some Debt limits early repayments; for example, on a 10-year unsecured bond issuance, the company might not be able to repay Debt at all for the first two years. Then, after that, the company might have to repay 105% of the outstanding principal if it does so in Years 3-4, 103% in Years 5-6, 101% in Years 7-8, and 100% in Years 9-10. These “call premiums” make it more expensive to repay the Debt, which is almost always required in LBO scenarios, and increase the effective Purchase Enterprise Value. But they still don’t matter that much: In a 10x EV / EBITDA deal with 5x Debt / EBITDA, for example, a 110% call premium would increase the purchase multiple to 10.5x and reduce the IRR by about 2%. And the call premium is usually much less than 110%. Exception #2: Lender Familiarity If the company has a track record of servicing its Debt, paying interest, and using loans responsibly, lenders may be more inclined to invest in another Debt issuance from the company. Or, if the company has a poor track record with all of those, lenders may be less likely to invest in a new Debt issuance. These points don’t affect the purchase price or IRR, but they may make it easier or more difficult to get a deal done. You could argue that a solid track record might result in a lower coupon rate on the Debt, but that’s quite a stretch, and it would be difficult to find real data to support that theory. Even if that happened, a slightly lower interest rate would make almost no difference on the IRR or money-on-money multiple. RESOURCES: https://youtube-breakingintowallstreet-com.s3.amazonaws.com/109-14-LBO-Model-Existing-Debt-Slides.pdf https://youtube-breakingintowallstreet-com.s3.amazonaws.com/109-14-LBO-Model-Existing-Debt.xlsx
How to Create Passive Income - Linear vs. Leveraged Income
 
10:16
Learn how to create passive, residual income and take back control of your life. This clear and concise explanation will show you how to build a business that provides massive monthly cashflow, even after you stop working. This is what Robert Kiyosaki (the author of Rich Dad, Poor Dad) calls a "Big Business". Start part time, with very little capital investment, and build your fortune with us. Are you ready for Freedom? We are seeking partners to join our global team of independent business owners. Follow a proven system, complete with training and support, and achieve your dreams! We love to help people and look forward to hearing from you. Contact us now at [email protected] and we can explore how this business model can make your dreams come true. Create true freedom (Time AND Money)!
Views: 1280 Joy Castro Daniel
'Leveraging Technology to automate micro tasks'
 
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Aravindhan our tech savvy speaks about how technology can be leveraged to automate micro level tasks. 14/8/18