Publications

January 2008 (Revised July 2010)
Case

Wal-Mart's Use of Interest Rate Swaps

"Wal-Mart's Use of Interest Rate Swaps" recounts Wal-Mart's use of interest rate swaps to hedge the fair value of its fixed-rate debt against changing interest rates. This case provides students with a foundation for understanding the use of and accounting for more... View Details

Keywords: Fair Value Accounting; Financial Statements; Credit Derivatives and Swaps; Financial Strategy; Interest Rates; Corporate Disclosure

May 2005 (Revised January 2006)
Case

Ticonderoga: Inverse Floating Rate Bond

Presents a simple interest hedging exercise. A hedge fund is considering an investment in a structured fixed--income product: an inverse floating-rate bond, or inverse floater, designed by a U.S. investment bank. The hedge fund's normal policy is to hedge interest rate... View Details

Keywords: Risk and Uncertainty; Credit Derivatives and Swaps; Bonds; Investment Funds; Interest Rates

01 Feb 1998
News

Kicking Off a Startup: Jennifer Rottenberg (MBA '96)

secured and the league is fully capitalized, and with additional revenues derived from television contracts and ticket sales, the NSA, Rottenberg believes, will be on sound financial footing from the outset, unlike most fledgling leagues.... View Details

Keywords: Nancy O. Perry

March 1984 (Revised August 1996)
Case

B.F. Goodrich-Rabobank Interest Rate Swap

By: Jay O. Light

A U.S. manufacturing organization and a Eurobank swap fixed and floating rate obligations to reduce their financing costs. View Details

Keywords: Financing and Loans; Cost Management; Production; Interest Rates; Credit Derivatives and Swaps; Auto Industry; Financial Services Industry; United States

May 1991 (Revised December 1994)
Case

State of Connecticut Municipal Swap

By: Andre F. Perold

The state of Connecticut wants to raise $325 million of long-term fixed-rate debt. One alternative is to do this synthetically--issue long-term variable rate debt and enter into an interest rate swap. The case is a vehicle for analyzing various floating rate structures... View Details

Keywords: Borrowing and Debt; Credit Derivatives and Swaps; Interest Rates; Taxation; Management Analysis, Tools, and Techniques; Risk and Uncertainty; New England

February 2010
Teaching Note

Saginaw Parts Co. and the General Motors Corp. Credit Default Swap (TN)

By: William E. Fruhan

Teaching Note for [210056]. View Details

Keywords: Credit Derivatives and Swaps; Insolvency and Bankruptcy; Law; Cost of Capital; United States

May 2005 (Revised December 2005)
Case

Nexgen: Structuring Collateralized Debt Obligations (CDOs)

A client asks Luc Giraud, CEO of the structured finance solutions provider Nexgen Financial Solutions, to put together a solution that allows the client to add AAA-rated bonds to its portfolio. The client cannot find suitably priced top-rated bonds in the market and... View Details

Keywords: Credit Derivatives and Swaps; Risk and Uncertainty; Debt Securities; Bonds; Financial Services Industry

01 Jun 2012
News

A Better World, One Idea at a Time

offering a brand of all-natural facial moisturizing oils derived from argan oil, obtained from southern Morocco’s argan tree. The company will work with the rural poor to build sustainable business around argan oil production. Emprofit,... View Details

Keywords: contests; awards; cosmetics; Crop Production; Agriculture; Chemical Manufacturing; Manufacturing; Nonstore Retailers; Retail Trade

08 Dec 2009
News

Don’t Scare the Bankers

kind of hilarious to me. But that was then, and now it’s semi-communist China that’s keeping American capitalism afloat. And Mr. Ji’s notion of banking was shaped in a different era, when banking was still a proudly conservative profession. Nowadays, with banking... View Details

Keywords: Garry Emmons; Finance; Offices of Bank Holding Companies; Management

June 2024
Article

Counterparty Risk and Counterparty Choice in the Credit Default Swap Market

By: Wenxin Du, Salil Gadgil, Michael Gordy and Clara Vega

We investigate how market participants price and manage counterparty credit risk using confidential trade repository data on single-name credit default swap (CDS) transactions. We find that counterparty risk has a modest impact on the pricing of CDS contracts but a... View Details

Keywords: Credit Derivatives and Swaps; Market Participation; Risk and Uncertainty; Price; Financial Markets; Credit

Find at Harvard

01 Jun 2010
News

Powering Up

Watertown, Massachusetts. The company builds systems derived from innovative electricity-delivery technology developed by an MIT professor (Boston Globe, February 22, 2010). While initial applications — Giler thinks they will be... View Details

Keywords: Management, Scientific, and Technical Consulting Services; Professional Services; Electric Power Generation, Transmission, Distribution; Utilities

Web

Digital Marketing & AI Workshop - Course Catalog

will be based on the following components: Final Case Analysis (50%) Class Participation (30%) Mid-Term Exam (20%) Given the workshop format, class participation will be assessed based on students’ preparation, analysis of mini-cases, and the depth of insights View Details

01 Feb 2002
News

Leading Quietly

inconspicuously and without casualties." Badaracco believes that what drives society are millions of small yet consequential decisions that individuals make on a daily basis. He presents a series of situations describing quiet leaders at work and View Details

Keywords: Colleges, Universities, and Professional Schools; Educational Services

Web

Lehman Brothers - Introduction | Baker Library | Bloomberg Center | Harvard Business School

derivatives and subprime mortgages; losses on these instruments contributed to the firm’s filing for bankruptcy in 2008. Drawing from the extensive Lehman Brothers Collection in Baker Library’s Special Collections, Lehman Brothers: A... View Details

August 1985 (Revised July 1991)
Case

Universal Circuits, Inc.

By: Thomas R. Piper

The manager of international finance of a major U.S. electronics company is concerned about the exposure of the firm to changes in exchange rates. Of particular concern is the exposure of operations to changes in real exchange rates. The teaching objectives include: 1)... View Details

Keywords: Credit Derivatives and Swaps; International Finance; Currency Exchange Rate; Business Plan; Risk and Uncertainty; Financial Management; Financial Strategy; Electronics Industry; United States

September 2002 (Revised October 2002)
Case

Corporate Inversions: Stanley Works and the Lure of Tax Havens

By: Mihir A. Desai, James R. Hines, Jr and Mark Veblen

In response to Stanley Work's announcement that it is moving to Bermuda--and the associated jump in market value--a major competitor sets out to determine how the market is valuing the consequences of moving to a tax haven and whether his company should invert to a tax... View Details

Keywords: Financial Management; Taxation; Financial Strategy; Credit Derivatives and Swaps; International Finance; Valuation; Financial Markets; Financial Statements; United States