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  • February 1985 (Revised August 2008)
  • Case

Arrow Electronics

Arrow Electronics is the fastest growing distributor of electronic components in North America and the second largest. Its capital structure policy of heavy reliance on debt financing contrasts sharply with that of its leading competitor, Arnet. Students are asked to... View Details
Keywords: Borrowing and Debt; Capital Structure; Financial Management; Risk Management; Distribution; Competition; Hardware; Electronics Industry; United States
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El-Hage, Nabil N., and Robert R. Glauber. "Arrow Electronics." Harvard Business School Case 285-114, February 1985. (Revised August 2008.)
  • October 2008 (Revised August 2010)
  • Background Note

Understanding the Credit Crisis of 2007 to 2008

By: Arthur I Segel and Ben Creo
This note details the background of the credit crisis, discusses potential causes of it, and considers its ramifications. The exhibits contain a variety of pertinent data regarding the rise of securitization, debt levels, and typical aspects of financial crises. A new... View Details
Keywords: Financial Crisis; Borrowing and Debt; Credit; Financial Instruments; Financial Management; Financial Markets
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Segel, Arthur I., and Ben Creo. "Understanding the Credit Crisis of 2007 to 2008." Harvard Business School Background Note 209-073, October 2008. (Revised August 2010.)
  • February 1986
  • Case

General Foods Corp.: Project Duck Soup

General Foods must decide whether to acquire Entenmann's Bakery. Price and financing must also be decided. The teaching objectives include analysis of strategic fit, selection of purchase price, and financing method. Another issue is the debt to equity ratio that is... View Details
Keywords: Acquisition; Corporate Finance; Manufacturing Industry; Food and Beverage Industry
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Fenster, Steven R., and Robert R. Glauber. "General Foods Corp.: Project Duck Soup." Harvard Business School Case 286-071, February 1986.
  • 01 Aug 2011
  • News

U.S. Debt-Plan Compromise, Downgrade Outlook

  • November 1988 (Revised September 1991)
  • Case

Simmons Japan Ltd.

By: W. Carl Kester and Richard P. Melnick
Concerns the first leveraged buyout to occur in Japan. Analytic tasks include a valuation of the company and an assessment of its debt capacity. Also provides opportunities to discuss agency costs associated with alternative capital and equity ownership structures,... View Details
Keywords: Leveraged Buyouts; Restructuring; Borrowing and Debt; Capital Structure; Cost; Equity; Production; Valuation; Japan; United States
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Kester, W. Carl, and Richard P. Melnick. "Simmons Japan Ltd." Harvard Business School Case 289-001, November 1988. (Revised September 1991.)
  • July 2003 (Revised January 2004)
  • Case

Swedish Lottery Bonds

Profiling nonsystematic risk for a bond investor, the case describes lottery bond issues by the Swedish National Debt Office (SNDO). Swedish lottery bonds are a specific type of financial fixed income instrument for Swedish retail investors. The distinctive feature of... View Details
Keywords: Bonds; Business and Government Relations; Public Administration Industry; Retail Industry; Sweden
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Chacko, George C., Peter A. Hecht, Vincent Dessain, and Anders Sjoman. "Swedish Lottery Bonds." Harvard Business School Case 204-048, July 2003. (Revised January 2004.)
  • February 1986 (Revised March 1989)
  • Background Note

Note on Foreign Exchange

Describes the operation of foreign exchange markets, including bid-offer spreads, cross rates, reciprocal rates, and forward rates. Provides several examples to demonstrate calculation of outright forward rates using discount and premium points quoted in the London... View Details
Keywords: Currency Exchange Rate; Capital Markets
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Mason, Scott P. "Note on Foreign Exchange." Harvard Business School Background Note 286-067, February 1986. (Revised March 1989.)
  • 2015
  • Working Paper

On the Increasing Centralization of US Money and Credit

By: Amar Bhidé
My current work on the debt market liquidity (Bhidé 2015) and antecedent book (Bhidé 2010) critiques the de facto centralization of credit extension in the U.S. This essay examines how the increased centralization of credit maps into a decline in the decentralized... View Details
Keywords: Centralization; Money; Credit; United States
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Bhidé, Amar. "On the Increasing Centralization of US Money and Credit." Harvard Business School Working Paper, No. 21-022, June 2015.
  • 12 Jun 2019
  • News

Busy IPO Market Offers Lifeline to Troubled Retailers

  • March 1992 (Revised June 1992)
  • Case

Thermo Electron Corp.

By: Carliss Y. Baldwin
George Hatsopoulos, CEO at Thermo Electron Corp., is considering whether to issue shares in a subsidiary via an initial public offering (IPO). The company has developed an unusual corporate structure in which subsidiaries fund new ventures by raising debt and equity in... View Details
Keywords: Financial Management; Business Subsidiaries; Resource Allocation; Valuation; Organizational Structure; Business Headquarters; Initial Public Offering; Capital Structure; Capital Markets; Financial Strategy; Corporate Finance; Semiconductor Industry; Technology Industry
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Baldwin, Carliss Y. "Thermo Electron Corp." Harvard Business School Case 292-104, March 1992. (Revised June 1992.)
  • 23 Jul 2021
  • News

The Cost of the Olympics’ ‘Runaway Arms Race’ and New Hope for Student Loan Borrowers in Bankruptcy

  • 24 Aug 2018
  • News

Lenders Shunned Risky Personal Loans. Now They’re Competing for Them.

  • November 1990 (Revised June 1993)
  • Case

FMC Corp.: A Recapitalization

By: William J. Bruns Jr. and Julie H. Hertenstein
A proposed recapitalization will use new debt to pay a large dividend to some shareholders in return for a reduction of their voting power. The result will be a highly leveraged financial structure and negative owners' equity. Students can trace the effects of proposed... View Details
Keywords: Financial Statements; Financial Strategy; Asset Management; Financial Management; Business Conglomerates; Borrowing and Debt; Business and Shareholder Relations; Capital Structure; Equity; Private Equity; Chemical Industry
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Bruns, William J., Jr., and Julie H. Hertenstein. "FMC Corp.: A Recapitalization." Harvard Business School Case 191-084, November 1990. (Revised June 1993.)
  • January 2005 (Revised November 2014)
  • Case

Arch Wireless, Inc.

By: Stuart C. Gilson and Perry L. Fagan
The largest wireless paging company in the United States has to restructure its debt in response to the collapse of its market. The restructuring faces formidable challenges. Valuing the company is extremely difficult because Arch's public competitors are also severely... View Details
Keywords: Restructuring; Borrowing and Debt; Insolvency and Bankruptcy; Organizational Structure; Valuation
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Gilson, Stuart C., and Perry L. Fagan. "Arch Wireless, Inc." Harvard Business School Case 205-024, January 2005. (Revised November 2014.)
  • December 1981 (Revised September 1986)
  • Case

Marriott Corp.

By: Thomas R. Piper
Marriott is considering the repurchase of ten million shares. This is apparently at odds with the financial policies that the Board of Directors passed two years earlier. Students must discuss why the policies were passed and why changes are now necessary. Includes a... View Details
Keywords: Stocks; Policy; Governing and Advisory Boards; Change; Financial Strategy; Valuation
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Piper, Thomas R. "Marriott Corp." Harvard Business School Case 282-042, December 1981. (Revised September 1986.)
  • October 2016
  • Case

The Quiet Ascension of LA Fitness

By: John R. Wells and Gabriel Ellsworth
In 2016, LA Fitness was the largest chain of non-franchised fitness clubs in North America, operating 676 clubs, serving 4.9 million members, and generating revenues of over $1.9 billion. Founded by Chinyol Yi, Louis Welch, and Paul Norris in 1984, the privately held... View Details
Keywords: LA Fitness; Health Clubs; Fitness; Gyms; Chain; Exercise; Personal Training; Retention; Bally Total Fitness; 24 Hour Fitness; Planet Fitness; Buildings and Facilities; Acquisition; Business Growth and Maturation; Business Model; For-Profit Firms; Customers; Customer Focus and Relationships; Customer Satisfaction; Demographics; Age; Gender; Income; Residency; Borrowing and Debt; Capital; Capital Structure; Cash; Cash Flow; Cost; Private Equity; Financial Condition; Financial Liquidity; Financing and Loans; Investment Return; Price; Profit; Revenue; Geographic Location; Geographic Scope; Multinational Firms and Management; Business History; Employees; Recruitment; Selection and Staffing; Human Capital; Contracts; Business or Company Management; Goals and Objectives; Growth and Development Strategy; Market Entry and Exit; Operations; Service Operations; Leasing; Private Ownership; Problems and Challenges; Sales; Salesforce Management; Situation or Environment; Opportunities; Sports; Strategy; Business Strategy; Competition; Competitive Strategy; Competitive Advantage; Corporate Strategy; Expansion; Segmentation; Information Technology; Mobile Technology; Technology Platform; Health Industry; United States; California; Los Angeles
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Wells, John R., and Gabriel Ellsworth. "The Quiet Ascension of LA Fitness." Harvard Business School Case 717-424, October 2016.
  • February 1991 (Revised July 1994)
  • Case

Tom Paine Mutual Life Insurance Company

A junior portfolio manager at a major life insurance company must choose among various public and private debt alternatives in connection with the funding of a new Guaranteed Investment Contract. The case serves as an introduction to life insurance companies as... View Details
Keywords: Asset Management; Insurance; Financial Services Industry; Insurance Industry
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Moore, Ronald W. "Tom Paine Mutual Life Insurance Company." Harvard Business School Case 291-030, February 1991. (Revised July 1994.)
  • 21 Oct 2013
  • News

How To Agree

  • April 2015 (Revised April 2022)
  • Case

Bankruptcy in the City of Detroit

By: Stuart Gilson, Kristin Mugford and Annelena Lobb
The June 2013 bankruptcy of the city of Detroit, Michigan was, at the time, the largest municipal bankruptcy in American history. Detroit had struggled for years with a weakening tax base, high unemployment, a heavy debt load and increasing retiree costs. These... View Details
Keywords: Chapter 9; Chapter 11; Bankruptcy; Municipal Finance; Restructuring; Financial Liquidity; Insolvency and Bankruptcy; City; Government Administration; Public Sector; Financial Crisis; Financial Management; Failure; Labor Unions; Urban Development; Budgets and Budgeting; Decision Making; Demographics; Economics; Finance; Public Administration Industry; Michigan; Detroit
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Gilson, Stuart, Kristin Mugford, and Annelena Lobb. "Bankruptcy in the City of Detroit." Harvard Business School Case 215-070, April 2015. (Revised April 2022.)
  • March 2021 (Revised April 2021)
  • Case

Making Impact Investing Markets: IFC (A)

By: Shawn A. Cole, John Masko and T. Robert Zochowski
In 2017, the International Finance Corporation (IFC) faced the first big investment decision in its new Scaling Solar project. Founded in 1956, IFC was an international investment body with national governments as shareholders, whose mission was to promote economic... View Details
Keywords: Impact Investing; Development Economics; Developing Countries and Economies; Renewable Energy; Climate Change; Environmental Sustainability; Borrowing and Debt; Credit; Equity; Bonds; Financing and Loans; Growth and Development; Emerging Markets; Non-Governmental Organizations; Corporate Social Responsibility and Impact; Investment; Decision Making; Financial Services Industry; Energy Industry; Zambia
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Cole, Shawn A., John Masko, and T. Robert Zochowski. "Making Impact Investing Markets: IFC (A)." Harvard Business School Case 221-061, March 2021. (Revised April 2021.)
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