Uploaded February 2025 | Updated September 2026, 1 week ago
In this session, we started with the cost of debt and computing debt ratios for companies and how to deal with hybrid securities.. If you are interested in getting updated default spreads (on the cheap or free), try the Federal Reserve site in St. Louis:
fred.stlouisfed.org
These are spreads on indices created by rating, updated daily. Neat, right? For an even more detailed albeit less user-friendly space, try the NAIC and once you are on the site, go to search and type in F&G current spreads. The most updated version I found looks like this:
They update every month, though it takes them about six weeks after the month ends to do this. We then moved on to earnings and cash flow’s and after a introduction to cash flows, I promised you a link to the post on Microsoft where I talk about the differences in free cash flows:
aswathdamodaran.blogspot.com/2022/10/earnings-and-cash-flows-primer-on-free.html
We ended the class by noting that leases are debt, and while accountants should always treated them as such, they came to their senses in 2019.
Start of the class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/cftests.pdf
Slides: nyu.box.com/s/qo273a8v2wr42c60pd839g116bohh1iv
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session8Btest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session8Bsoln.pdf
In this session, we started with the cost of debt and computing debt ratios for companies and how to deal with hybrid securities.. If you are interested in getting updated default spreads (on the cheap or free), try the Federal Reserve site in St. Louis:
fred.stlouisfed.org
These are spreads on indices created by rating, updated daily. Neat, right? For an even more detailed albeit less user-friendly space, try the NAIC and once you are on the site, go to search and type in F&G current spreads. The most updated version I found looks like this:
They update every month, though it takes them about six weeks after the month ends to do this. We then moved on to earnings and cash flow’s and after a introduction to cash flows, I promised you a link to the post on Microsoft where I talk about the differences in free cash flows:
aswathdamodaran.blogspot.com/2022/10/earnings-and-cash-flows-primer-on-free.html
We ended the class by noting that leases are debt, and while accountants should always treated them as such, they came to their senses in 2019.
Start of the class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/cftests.pdf
Slides: nyu.box.com/s/qo273a8v2wr42c60pd839g116bohh1iv
Post class test: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session8Btest.pdf
Post class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session8Bsoln.pdf
