Three-statement modelling explained in three minutes This content is taken directly from Intuition Know-How, the world's premier digital learning solution for finance professionals. The three-statement model is a cornerstone of investment banking and forms the basis for much of the research carried out by analysts right across the financial sector.
Recessions: Causes and government interventions In most countries, most of the time, the economy expands, propelled by population growth and productivity improvements. However, from time to time, the economy enters recession. Recessions have many negative consequences for households, businesses, and markets. There is no single definition of a recession. A recession is often
Mastering trade finance: Credit, negotiations, & risk International trade creates risk for trading parties relating to uncertainty over the timing of payments between exporters and importers. For instance, an exporter often has a cash flow shortfall when it provides trade credit to an importer. This is because payment is not received until some
Nonferrous metals: Indispensable business materials A nonferrous metal is an alloy or metal that does not contain an appreciable amount of iron in its chemical composition. There are many metals that fall into this definition, but only a few of these metals are traded on exchanges. We can split these traded nonferrous
What are green bonds? As interest in environmental, social, and governance (ESG) issues has grown, the market for green bonds and other green assets has expanded rapidly. Today, this market includes a wide range of green debt instruments and new asset types are emerging regularly. However, a lack of universal global standards for
DeepSeek’s market shock: What you need to know A breakthrough AI model by Chinese upstart DeepSeek created a storm in global financial markets in January, slashing nearly USD 1 trillion of US tech sector market capitalization in a single day and forcing a dramatic rethink of AI valuations. Nvidia plunged 17%, with other semiconductor
The Trade Life Cycle: 5 Key Stages For many, a trade simply refers to the moment that two counterparties engage in a transaction, such as the exchange of cash for a bond in a securities trade or the exchange of two currencies in an FX trade. In reality, for a trade to take place,
What is corporate governance? Corporate governance is concerned with optimizing and improving how companies are managed and monitored, with the goal of benefiting all stakeholders and minimizing downside risks. Shareholders, the board of directors, management, employees, and other stakeholders all have a role to play in ensuring that companies adhere to the highest
What is operational risk? Unlike most other industries, banks earn income by taking risks, primarily by accepting exposures to credit and market risk. Banks are, however, exposed to a range of other risks. Operational risk, for instance, can be found in all banking products, activities, processes, and systems. The Basel Committee on Banking
What is PSD2? The second EU Payment Services Directive (PSD2) builds on the first such Directive (PSD1) by providing for the further development of a better-integrated internal market for electronic payments across the EU. PSD2 puts in place a comprehensive framework for payment services, with the objective of making payments within the EU
