Capital Structure and Opportunities

The speaker talks through the flawed capital structure of many companies which ultimately led to the banking crisis on Wall Street.  He discusses the concept of "positive leverage" which basically means that cost of debt is significantly lower than the return on equity.  This led to gigantic amounts of leverage and the smallest change in the spread between the cost of debt and ROE would significantly impact the companies bottom line. 

Tim Ord
Ord Oracle

Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...
Day Trading Simulator provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for...

Send this article to a friend.

Enter multiple addresses on separate lines or separate them with commas.