Publications

March 2009 (Revised November 2016)
Case

Washington Mutual's Covered Bonds

By: Daniel Baird Bergstresser, Robin Greenwood and James Quinn

Washington Mutual issued 6 billion euro of covered bonds in 2006. The objective of the case is to ask whether these bonds are mispriced in late 2008. The case is set in September 2008, and Washington Mutual is facing considerable distress due to mounting losses in its... View Details

Keywords: Capital Markets; Financial Liquidity; Bonds; Mortgages; Price; Banking Industry; United States

April 2008
Tutorial

Finance: An Introductory Online Course

By: Timothy A. Luehrman, Brenda W. Chia and Michelle Rendall

The Finance Online Course provides a fundamental understanding of the principles, analytical tools, and knowledge needed to make good investment and financing decisions. The course introduces students to finance ratios, forecasting methods, capital structure theory,... View Details

Keywords: Financial Management; Forecasting and Prediction; Investment; Corporate Finance

June 2009 (Revised February 2010)
Case

Cirque du Soleil -- The High-Wire Act of Building Sustainable Partnerships

By: Ramon Casadesus-Masanell and Maxime Aucoin

The case describes the history and business model of Cirque du Soleil (CdS). The case allows for a rich discussion and analysis of Cirque du Soleil's business model with an emphasis on how it interacts with that of MGM Mirage. Le Cirque and MGM's business models... View Details

Keywords: Business Model; Investment; Profit; Globalized Markets and Industries; Growth and Development Strategy; Market Entry and Exit; Partners and Partnerships; Trust; Entertainment and Recreation Industry

David Ager is a Senior Lecturer in Executive Education. He engages CEOs, CHROs, and their teams to design and deliver customized executive development experiences for executive, senior and high potential leaders. The companies hail from diverse sectors including... View Details

February 2008 (Revised November 2008)
Case

Radical Collaboration: IBM Microelectronics Joint Development Alliances

By: Willy Shih, Gary Pisano and Andrew A. King

IBM's "Radical Collaboration" model has been an innovative approach to meeting the challenges of the huge R&D and capital investments that are needed to stay competitive in the global semiconductor industry. This model has required a rethinking of what is proprietary,... View Details

Keywords: Cost Management; Investment; Collaborative Innovation and Invention; Problems and Challenges; Alliances; Networks; Partners and Partnerships; Research and Development; Competitive Advantage; Semiconductor Industry

26 Jun 2012
First Look

First Look: June 26

Authors:Desai, Mihir A., C. Fritz Foley, and James R. Hines, Jr. Abstract This paper analyzes the extent to which firms use trade credit to reallocate capital in response to tax incentives. Tax-induced differences in pretax returns... View Details

Keywords: Sean Silverthorne

August 1990
Case

Legacy Fund, Inc.

By: Jeffry A. Timmons and James Weber

Two young HBS graduates propose to create a new venture capital fund in 1989. The case focuses on: 1) evaluation of the venture capital industry; 2) whether there is an opportunity for a new specialized fund; 3) the structuring of risks and rewards in the fund; 4)... View Details

Keywords: Venture Capital; Product Design; Investment Funds; Financial Services Industry

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06 Jul 2018
News

The Real Problem With Stock Buybacks

16 Aug 2012
Working Paper Summaries

The Cost of Friendship

Keywords: by Paul Gompers, Vladimir Mukharlyamov & Yuhai Xuan

13 Jan 2010
Working Paper Summaries

Private Equity and Industry Performance

Keywords: by Shai Bernstein, Josh Lerner, Morten Sørensen & Per Strömberg

Career Coach

Alyssa Wilson

Alyssa wants to help students decide if a career in investing is a good fit for their interests and skillset as well as work through practical recruiting advice and tactics. Alyssa can provide insight on how different firms recruit as... View Details

November 2000 (Revised April 2004)
Case

Airbus A3XX: Developing the World's Largest Commercial Jet (A)

By: Benjamin C. Esty and Michael Kane

In July 2000, Airbus Industries' supervisory board is on the verge of approving a $13 billion investment for the development of a new super jumbo jet known as the A3XX that would seat from 550 to 1,000 passengers. Having secured approximately 20 orders for the new jet,... View Details

Keywords: Risk and Uncertainty; Investment; Forecasting and Prediction; Capital Budgeting; Valuation; Government and Politics; Demand and Consumers; Product Development; Product Positioning; Air Transportation Industry; Manufacturing Industry

Article

Reaching for Yield in the Bond Market

By: Bo Becker and Victoria Ivashina

Reaching for yield—the propensity to buy riskier assets in order to achieve higher yields—is believed to be an important factor contributing to the credit cycle. This paper analyzes this phenomenon in the corporate bond market. Specifically, we show evidence for... View Details

Keywords: Fixed Income; Reaching For Yield; Financial Intermediation; Insurance Companies; Insurance; Assets; Bonds; Investment Return; Investment Portfolio; Risk Management; Insurance Industry

SSRN

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January 1994 (Revised April 2011)
Background Note

Note on Private Equity Partnership Agreements

By: Josh Lerner

Venture capital by necessity is a long-run investment. Consequently, since the mid-1960s virtually all venture financing has been raised through private partnerships with a ten-year or longer life span. To govern these investments, complex contracts have sprung up... View Details

Keywords: Venture Capital; Financing and Loans; Investment; Governance; Contracts; Partners and Partnerships

November 2019 (Revised April 2020)
Case

Away: Scaling a DTC Travel Brand

By: Jill Avery and Joseph B. Fuller

Away, a direct-to-consumer, digital native e-commerce seller of travel luggage, is debating how to invest its latest round of venture funding. How quickly could and should Away scale and what were the most promising growth trajectories to maximize its potential? Three... View Details

30 Jul 2008
Op-Ed

Why the U.S. Should Encourage FDI

emerging markets of China and India—are filled with capital controls and ownership restrictions. How can the United States as a destination end up being so much less attractive despite the relative absence of this usual litany of View Details

Keywords: by Mihir A. Desai

December 2008 (Revised March 2009)
Case

Rosetree Mortgage Opportunity Fund

By: Victoria Ivashina and Andre F. Perold

In December 2008, in the midst of the worst financial crisis since the Great Depression, Rosetree Capital Management was evaluating the purchase of a pool of U.S. residential mortgages. The firm had formed an investment vehicle to acquire troubled residential mortgages... View Details

Keywords: Financial Crisis; Borrowing and Debt; Mortgages; Investment; Housing; Valuation; United States

July 2009 (Revised September 2009)
Case

The Blackstone Group: Merlin Entertainment

The Blackstone Group had conducted a roll-up of theme parks and attractions business in Europe. It was considering how to generate liquidity for its investors. Blackstone entered the theme parks and attractions business in Europe by acquiring a majority stake in... View Details

Keywords: Mergers and Acquisitions; Cost vs Benefits; Private Equity; Financial Liquidity; Investment Return; Risk Management; Leasing; Entertainment and Recreation Industry; Europe

April 2017
Article

Financing Risk and Innovation

By: Ramana Nanda and Matthew Rhodes-Kropf

We provide a model of investment into new ventures that demonstrates why some places, times, and industries should be associated with a greater degree of experimentation by investors. Investors respond to financing risk―a forecast of limited future funding―by modifying... View Details

Keywords: Risk and Uncertainty; Financing and Loans; Innovation and Invention