Hard Times
By John Schroy, on April 17th, 2009 |

The Crash of 2008 was the end to what I call, “the old capital markets”.
A new era is beginning, but form and detail are hidden in the mists of change. It may be a decade or so before new structures and directions are visible.
Many were thrown out of work by the Crash, but before getting into the unpleasant chore of actually looking for a job, you should consider whether or not you even want to work in the new capital markets.
Assessing the damage
By John Schroy, on April 14th, 2009 |

The buyback era began in 1982 when the US Securities and Exchange Commission promulgated Rule 10b-18, granting “safe harbor” to corporations that wished to use equity repurchases to boost market prices in order to give value to executive option schemes. The total value of corporate buybacks since SEC Rule 10b-18, in 2008 dollars, is estimated at $5.77 trillion.
Buybacks have been funded not only from profits, but by raiding depreciation reserves and borrowing from banks.
Auction Market Preferred Shares
By John Schroy, on March 30th, 2009 |

Failures of commercial rating services to do an adequate job have been widely recognized, in the wake of the Crash of 2008. Much of the criticism, however, has been directed to the conflicts of interests that are a characteristic of these services.
This article discusses other weaknesses of commercial publishers of investment information, such as the industrial nature of their operations and their marketing focus on traders rather than long-term investors. The case of Auction Market Preferred Shares, which failed in 2008, is covered in detail.
Popular Articles