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  • August 2008
  • Supplement

Iceland (B): Redefining Aaa-Rated Sovereigns

By: Aldo Musacchio
In May of 2008, a team of sovereign debt analysts at Moody's had to decide whether to downgrade the country's sovereign long-term debt from Aaa to Aa1 or lower. Investor sentiment toward Iceland had changed radically in March, and the Moody's team was fearful that the... View Details
Keywords: Sovereign Finance; Financial Crisis; Borrowing and Debt; Currency; Financial Condition; Decision Choices and Conditions; Iceland; European Union
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Musacchio, Aldo. "Iceland (B): Redefining Aaa-Rated Sovereigns." Harvard Business School Supplement 709-012, August 2008.
  • August 2008 (Revised October 2010)
  • Case

Iceland (A)

By: Aldo Musacchio
In May of 2008, a team of sovereign debt analysts at Moody's had to decide whether to downgrade the country's sovereign long-term debt from Aaa to Aa1 or lower. Investor sentiment toward Iceland had changed radically in March, and the Moody's team was fearful that the... View Details
Keywords: Decision Choices and Conditions; Financial Crisis; Borrowing and Debt; Currency; Financial Condition; Sovereign Finance; European Union; Iceland
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Musacchio, Aldo. "Iceland (A)." Harvard Business School Case 709-011, August 2008. (Revised October 2010.)

    Evergrande on the Edge: Implications of a Corporate Crisis

    In this video, produced by the National Committee on U.S.-China Relations, Prof. Rithmire speaks with Keith Abell about how the Chinese economy became so reliant on real estate development and debt and what the Evergrande crisis means. View Details
    • November 2018 (Revised October 2019)
    • Case

    Rebuilding Puerto Rico

    By: Laura Alfaro, Laura Phillips Sawyer and Haviland Sheldahl-Thomason
    On September 20, 2017, Hurricane Maria swept over Puerto Rico, devastating the island’s infrastructure and agriculture. The natural disaster was layered atop years of mounting financial distress. Before the hurricane, Puerto Rico had accumulated $74 billion in debt and... View Details
    Keywords: Natural Disasters; Financial Crisis; Infrastructure; Borrowing and Debt; Economy; Strategic Planning; Governing Rules, Regulations, and Reforms; Puerto Rico
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    Alfaro, Laura, Laura Phillips Sawyer, and Haviland Sheldahl-Thomason. "Rebuilding Puerto Rico." Harvard Business School Case 719-018, November 2018. (Revised October 2019.)
    • March 2011
    • Case

    Valuation of AirThread Connections

    By: Erik Stafford and Joel L. Heilprin
    This case can be used as a capstone valuation exercise for first-year MBA students in an introductory finance course. A senior associate in the business development group at American Cable Communications, one of the largest cable companies in the U.S., must prepare a... View Details
    Keywords: Communication; Present Value; Tax Accounting; Capital Costs; Synergy; Telephony; Wireless Technologies; Communication Technology; Assets; Cost of Capital; Valuation; Cash Flow; Capital Structure; Accounting; Wireless Technology; Communications Industry; Media and Broadcasting Industry
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    Stafford, Erik, and Joel L. Heilprin. "Valuation of AirThread Connections." Harvard Business School Brief Case 114-263, March 2011.
    • February 2025
    • Case

    Blue Owl Financing of Ping Identity

    By: Victoria Ivashina and Srimayi Mylavarapu
    In the fall of 2022, Blue Owl Capital's investment committee evaluated a potential investment in the technology sector. The proposed transaction centered on Ping Identity Corporation (“Ping”), a fast-growing identity access management (IAM) software company that was... View Details
    Keywords: Mergers and Acquisitions; Borrowing and Debt; Cash Flow; Investment; Privatization; Financial Services Industry; Technology Industry
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    Ivashina, Victoria, and Srimayi Mylavarapu. "Blue Owl Financing of Ping Identity." Harvard Business School Case 225-078, February 2025.
    • 2020
    • Chapter

    Reserve Accumulation, Sovereign Debt, and Exchange Rate Policy

    By: Laura Alfaro and Fabio Kanczuk
    In the past decade, foreign participation in local-currency bond markets in emerging countries increased dramatically. Additionally, emerging countries are increasingly deviating from inflation targeting regimes, managing their exchange rate and engaging in... View Details
    Keywords: Reserves; Exchange Rate; Sovereign Finance; Currency Exchange Rate; Policy
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    Alfaro, Laura, and Fabio Kanczuk. "Reserve Accumulation, Sovereign Debt, and Exchange Rate Policy." In Asset Management at Central Banks and Monetary Authorities: New Practices in Managing International Foreign Exchange Reserves, edited by Jacob Bjorheim. Springer, 2020. (Book link.)
    • 23 Aug 2011
    • First Look

    First Look: August 23

    case:http://cb.hbsp.harvard.edu/cb/product/311128-PDF-ENG How Government Debt Accumulates Dante Roscini and Jonathan SchleferHarvard Business School Note 711-087 This note discusses the economics of government View Details
    Keywords: Sean Silverthorne
    • March 1986 (Revised July 1986)
    • Case

    Applications for Financial Futures

    Consists of a series of four brief descriptions of the use of financial futures as hedging vehicles: a savings and loan hedging the rollover of three-month money market certificates with T-bill futures, a corporate debt issuer hedging the cost of a future debt issue... View Details
    Keywords: Financial Instruments
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    Mason, Scott P. "Applications for Financial Futures." Harvard Business School Case 286-109, March 1986. (Revised July 1986.)
    • March 2007 (Revised November 2012)
    • Case

    Parmalat Uruguay (A)

    By: Paul Marshall and Gustavo Herrero
    Three young MBAs create a partnership to acquire the assets of Parmalat in Uruguay. Focuses on their analysis prior to submitting a bid and their plan for improving the operations once their bid is accepted. In addition to improving operations, they must negotiate with... View Details
    Keywords: Mergers and Acquisitions; Restructuring; Entrepreneurship; Borrowing and Debt; Negotiation; Performance Improvement; Uruguay
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    Marshall, Paul, and Gustavo Herrero. "Parmalat Uruguay (A)." Harvard Business School Case 807-103, March 2007. (Revised November 2012.)
    • November 1994 (Revised January 1995)
    • Background Note

    A Note on Capital Cash Flow Valuation

    By: Richard S. Ruback
    Presents the capital cash flow method for valuing risky cash flows. In this method cash flows are calculated to include the benefits of interest tax shields. In a capital structure, with just ordinary debt and common equity, capital cash flows equal the flows available... View Details
    Keywords: Capital; Cash Flow; Valuation
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    Ruback, Richard S. "A Note on Capital Cash Flow Valuation." Harvard Business School Background Note 295-069, November 1994. (Revised January 1995.)
    • February 2001
    • Case

    Bang Networks, Inc.

    By: Paul A. Gompers and Sergio Rattner
    Bob Rosin, president and CEO of Bang Networks, must decide how much debt financing to take on. The company is a raw start-up and is considering taking on $10 million in debt. The firm has six offers and needs to identify the best one. View Details
    Keywords: Business Startups; Restructuring; Decisions; Borrowing and Debt; Venture Capital
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    Gompers, Paul A., and Sergio Rattner. "Bang Networks, Inc." Harvard Business School Case 201-074, February 2001.

      Sven Von Appen

      Keywords: Shipping and Logistics
      • June 2018
      • Case

      Burton Sensors, Inc.

      By: William E. Fruhan and Wei Wang
      Burton Sensors presents a realistic situation where a small, rapidly growing, and profitable temperature sensor original equipment manufacturer (OEM) reaches its debt capacity and seeks equity financing to sustain high growth. The president of the company must decide... View Details
      Keywords: Financing and Loans; Acquisition; Investment; Financial Strategy; Decision Choices and Conditions
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      Fruhan, William E., and Wei Wang. "Burton Sensors, Inc." Harvard Business School Brief Case 918-539, June 2018.
      • February 1997 (Revised August 2016)
      • Case

      Stone Container Corporation (A)

      By: W. Carl Kester and Kirk Goldman
      In early 1993, Stone Container was heavily burdened by debt following a series of highly leveraged acquisitions. A prolonged depression in paper prices necessitated the development of a comprehensive financial plan to relieve the financial pressures on Stone. Among the... View Details
      Keywords: Leveraged Buyouts; Borrowing and Debt; Capital Structure; Equity; Price; Strategic Planning
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      Kester, W. Carl, and Kirk Goldman. "Stone Container Corporation (A)." Harvard Business School Case 297-047, February 1997. (Revised August 2016.)
      • February 2010 (Revised March 2010)
      • Supplement

      Leading Change at Simmons (E)

      By: Amy C. Edmondson and Susan Thyne
      This case updates the “Leading Change at Simmons” series by examining Simmons' increasing debt under the ownership of Thomas H. Lee, a private equity firm. Charlie Eitel, the former CEO, wonders what the company's, and his, legacy will be after declaring bankruptcy... View Details
      Keywords: Borrowing and Debt; Private Equity; Insolvency and Bankruptcy; Leading Change; Operations; Organizational Change and Adaptation; Organizational Culture; Ownership; Performance Improvement; Consumer Products Industry
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      Edmondson, Amy C., and Susan Thyne. "Leading Change at Simmons (E)." Harvard Business School Supplement 610-061, February 2010. (Revised March 2010.)
      • 08 Jun 2017
      • News

      Harvard Business School Announces Social Enterprise Loan Repayment Assistance Program

      • February 2016
      • Article

      Do Measures of Financial Constraints Measure Financial Constraints?

      By: Joan Farre-Mensa and Alexander Ljungqvist
      Financial constraints are fundamental to empirical research in finance and economics. We propose two tests to evaluate how well measures of financial constraints actually capture constraints. We find that firms typically classified as constrained do not in fact behave... View Details
      Keywords: Corporate Finance
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      Farre-Mensa, Joan, and Alexander Ljungqvist. "Do Measures of Financial Constraints Measure Financial Constraints?" Review of Financial Studies 29, no. 2 (February 2016): 271–308.
      • June 2013
      • Article

      Issuer Quality and Corporate Bond Returns

      By: Robin Greenwood and Samuel G. Hanson
      We show that the credit quality of corporate debt issuers deteriorates during credit booms, and that this deterioration forecasts low excess returns to corporate bondholders. The key insight is that changes in the pricing of credit risk disproportionately affect the... View Details
      Keywords: Quality; Bonds; Forecasting and Prediction; Credit
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      Greenwood, Robin, and Samuel G. Hanson. "Issuer Quality and Corporate Bond Returns." Review of Financial Studies 26, no. 6 (June 2013): 1483–1525. (Internet Appendix Here.)

        Jung Koo Kang

        Jung Koo Kang is an assistant professor in the Accounting and Management Unit. He teaches the Financial Reporting and Control course in the MBA required curriculum.

        Professor Kang’s research focuses on financial technology and innovation, alternative data,... View Details

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