In this episode of Magic Markets, we talked about the “capital stack” in corporates and how they blend debt and equity into a capital structure that works for the business.
After setting the scene with a short discussion on central banks, we covered topics like:
• The equity to debt spectrum, with mezzanine finance in the middle
• Examples of the types of spreads you can expect to see across different sources of capital
• The concept of weighted average cost of capital
• The benefit of having debt in an organisation and how this forces management to focus
• The relationship between debt and other policy decisions, like dividends and share buybacks
Magic Markets brings you institutional-level knowledge delivered in a way that is easy to understand. For more of our work, you can find our free shows here and our Premium library here.
With the G20 in the rearview mirror in South Africa, we took the opportunity to discuss Moe's views on the geopolitical shenanigans from a...
Stocks like Microsoft, Meta and Netflix have been strong winners in our portfolios (although we've had different exposures to them at different times). These...
When most investors think of growth-style funds, they imagine software-as-a-service businesses and artificial intelligence. Sometimes, growth can be found in industries that are as...
