I'm with my fintech background as well but only on the basics, not CDS or CDO thing.
Thank you for writing this article, I'll share this in case someone asks me what bond is, leverage, etc, because you can explain better with the illustration.
Amazing post! Just to make sure I understand "finance your financing", if I borrow $4.5m from another bank for a 25% equity stake... does that mean I now have only 5% of Bloks Inc? Because the original plan was that with $5m I would have 25% of the shares (other people put up the remaining $15m)
This is why I rely on Substack for ALL my education.
Thanks!…but why just ignore interest owed to debt investors?
This is a clear explanation, Brett :)
I'm with my fintech background as well but only on the basics, not CDS or CDO thing.
Thank you for writing this article, I'll share this in case someone asks me what bond is, leverage, etc, because you can explain better with the illustration.
You are very good at explaining these things clearly!
Amazing post! Just to make sure I understand "finance your financing", if I borrow $4.5m from another bank for a 25% equity stake... does that mean I now have only 5% of Bloks Inc? Because the original plan was that with $5m I would have 25% of the shares (other people put up the remaining $15m)
Thanks again! Which of your books would you recommend reading first…not as an investor/ gambler, but just mystified by the mechanism of money?
Those arrows should be to scale, not just directional.