Handbook of Corporate Equity Derivatives and Equity Capital Markets

Equity strategies are closely guarded secrets and as such, there is very little written about how investors and corporate can utilise equity vehicles as part of their growth strategies.

Informationen zum Autor JUAN RAMIREZ currently works in an international bank and is responsible for the marketing of strategic derivatives to Iberian corporate and institutional clients. After earning a bachelor degree in electrical engineering at the ICAI University in Madrid, he joined the consumer products group at Arthur Andersen where he spent five years gaining a substantial exposure to the accounting world. After earning an MBA degree from University of Chicago, Mr. Ramirez moved to London to work at Chase Manhatten(currently JP Morgan). He has also working at Lehman Brothers, Barclays Capital and Banco Santander. Mr. Ramirez has devoted more than 15 years marketing structured derivatives solutions. During the last seven years he has been working in strategic equity transactions with a strong accounting, capital markets, tax and regulatory angle. Mr. Ramirez is married and has three childen. Klappentext Strategic equity transactions often take place behind closed doors due to market sensitivity and their highly confidential nature. As a result there is very little written about how financial institutions and corporates can utilise equity solutions as part of their growth strategies.The Handbook of Corporate Equity Derivatives and Equity Capital Markets is a unique guide to building and implementing an equity derivatives strategy. Industry expert Juan Ramirez guides readers through the whole range of equity derivative instruments, showing how they can be applied to a range of equity capital market situations, including hedging, yield enhancement and disposal of strategic stakes, mergers and acquisitions, stock options plan hedging, equity financings, share buybacks and other transactions on treasury shares, bank regulatory capital arbitrage and tax driven situations.The book includes a number of real life case studies demonstrating how equity derivative strategies have and can be used.This book will enable readers to: devise a value-maximizing strategy, to identify its risks and to assess if the entity is able to bear the risks associated with its implementation make an independent evaluation of the merits and risks of proposed structures to the company by its investment banks identify new strategic equity opportunities to sell to clients of investment banks, to propose to clients innovative solutions and/or to quickly gain a specialized expertise in the strategic equity field better understand the rationale behind a particular strategic equity transaction entered into by an entity being analysed profit from a specific strategic situation of a company understand a financial transaction before deciding its accounting/tax treatment* suggest a change in the product profile so a more favourable accounting/tax treatment can be applied Zusammenfassung Equity strategies are closely guarded secrets and as such, there is very little written about how investors and corporate can utilise equity vehicles as part of their growth strategies. In this much-needed book, industry expert Juan Ramiraz guides readers through the whole range of equity derivative instruments, showing how they can be applied to a range of equity capital market situations, including hedging, yield enhancement and disposal of strategic stakes, mergers and acquisitions, stock options plan hedging, equity financings, share buybacks and other transactions on treasury shares, bank regulatory capital arbitrage and tax driven situations. The book includes case studies to highlight how equity derivative strategies have been used in real-life situations. Inhaltsverzeichnis Preface xvii About the Author xix 1 Main Strategic Equity Derivative Instruments 1 1.1 Equity Forwards 1 1.1.1 Equity Forwards 1 1.1.2 Example of a Cash-settled Equity Forward on a Stock 2 1.1.3 Example of a Physically Settled Equity Forward on a Stock 3 1.1.4 Calculating...

Auteur

JUAN RAMIREZ currently works in an international bank and is responsible for the marketing of strategic derivatives to Iberian corporate and institutional clients. After earning a bachelor degree in electrical engineering at the ICAI University in Madrid, he joined the consumer products group at Arthur Andersen where he spent five years gaining a substantial exposure to the accounting world. After earning an MBA degree from University of Chicago, Mr. Ramirez moved to London to work at Chase Manhatten(currently JP Morgan). He has also working at Lehman Brothers, Barclays Capital and Banco Santander. Mr. Ramirez has devoted more than 15 years marketing structured derivatives solutions. During the last seven years he has been working in strategic equity transactions with a strong accounting, capital markets, tax and regulatory angle. Mr. Ramirez is married and has three childen.

Texte du rabat
Strategic equity transactions often take place behind closed doors due to market sensitivity and their highly confidential nature. As a result there is very little written about how financial institutions and corporates can utilise equity solutions as part of their growth strategies. The Handbook of Corporate Equity Derivatives and Equity Capital Markets is a unique guide to building and implementing an equity derivatives strategy. Industry expert Juan Ramirez guides readers through the whole range of equity derivative instruments, showing how they can be applied to a range of equity capital market situations, including hedging, yield enhancement and disposal of strategic stakes, mergers and acquisitions, stock options plan hedging, equity financings, share buybacks and other transactions on treasury shares, bank regulatory capital arbitrage and tax driven situations. The book includes a number of real life case studies demonstrating how equity derivative strategies have and can be used. This book will enable readers to: devise a value-maximizing strategy, to identify its risks and to assess if the entity is able to bear the risks associated with its implementation make an independent evaluation of the merits and risks of proposed structures to the company by its investment banks identify new strategic equity opportunities to sell to clients of investment banks, to propose to clients innovative solutions and/or to quickly gain a specialized expertise in the strategic equity field better understand the rationale behind a particular strategic equity transaction entered into by an entity being analysed profit from a specific strategic situation of a company understand a financial transaction before deciding its accounting/tax treatment * suggest a change in the product profile so a more favourable accounting/tax treatment can be applied

Contenu

Preface xvii About the Author xix

1 Main Strategic Equity Derivative Instruments 1

1.1 Equity Forwards 1

1.1.1 Equity Forwards 1

1.1.2 Example of a Cash-settled Equity Forward on a Stock 2

1.1.3 Example of a Physically Settled Equity Forward on a Stock 3

1.1.4 Calculating the Forward Price of a Stock 4

1.2 Equity Swaps 6

1.2.1 Total Return Equity Swaps 6

1.2.2 Price Return Equity Swaps 7

1.2.3 Case Study: Physically Settled Total Return Equity Swap on Deutsche Telekom 7

1.2.4 Case Study: Cash-settled Total Return Equity Swap on Deutsche Telekom 12

1.2.5 Determination of the Initial Price 15

1.2.6 Determination of the Settlement Price 16

1.2.7 Equity Notional Resets 17

1.2.8 Case Study: Total Return Equity Swap on EuroStoxx 50 17

1.2.9 Compo Equity Swaps 21

1.2.10 Quanto Equity Swaps 23

1.2.11 Uses of Equity Swaps 25

1.3 Stock Lending and Borrowing 26

1.3.1 Stock Lending and Borrowing 26

1.3.2 Stock Lending/Borrowing Transaction Flows 27

1.3.3 Counterparty Credit Risk 28

1.3.4 Advantages of Stoc…