Category: Financial markets

This Infographic Breaks Down Careers In Finance, From Hedge Funds to M&A


This post is by Aran Ali from Visual Capitalist


Finance Careers infographic

Careers In Corporate Finance, From Hedge Funds to M&A

Corporate finance is a key pillar on which modern markets and economies have been built. And this complex ecosystem consists of a number of important sectors, which can lead to lucrative career avenues.

From lending to investment banking, and private equity to hedge funds, the graphic above by Wall Street Prep breaks down the key finance careers and paths that people can take.

Let’s take a further look at the unique pieces of this finance ecosystem.

The Lending Business

Lending groups provide much needed capital to corporations, often in the form of term loans or revolvers. These can be part of short and long-term operations or for events less anticipated like the COVID-19 pandemic, which resulted in companies shoring up $222 billion in revolving lines of credit within the first month.

Investment Banking

Next, is investment banking, which can split into three main areas:

  1. Mergers and Acquisitions (M&A): There’s a lot of preparation and paperwork involved whenever corporations merge or make acquisitions. For that reason, this is a crucial service that investment banks provide, and its importance is reflected in the enormous fees recognized. The top five U.S. investment banks collect $10.2 billion in M&A advisory fees, representing 40% of the $25 billion in global M&A fees per year.
  2. Loan Syndications: Some $16 billion in loan syndication fees are collected annually by investment banks. Loan syndications are when multiple lenders fund one borrower, which can occur when the loan (Read more...)

Comparing the Carbon Footprint of Gold and Bitcoin



The following content is sponsored by Prospector Portal.

Gold Bitcoin Carbon Footprint

The Carbon Footprint of Gold and Bitcoin

The year 2020 shook economies and financial markets around the world, creating uncertainty and volatility. This led investors to seek out alternative assets such as gold or bitcoin to weather the storm. Bitcoin stole the headlines from gold and attracted new investors in record numbers.

While this digital asset may exist in the electronic cloud, its increased adoption and energy use have significant environmental impacts. This infographic sponsored by Prospector Portal takes a look at the carbon footprint of bitcoin and gold.

Price Performance Increases Adoption

In early May, the value of the bitcoin market was $1.05 trillion, only 9% of the gold market’s $11.67 trillion value. Despite this, bitcoin performance is rising to challenge gold as an alternative asset in volatile markets.

In 2020, gold delivered a strong return with 25.12% over the year, and reached a historic high of $2,067 per ounce in August. However, the value of bitcoin rose 536.7% between May 2020 and May 2021, outperforming pretty much every asset possible over that timeframe.

According to Reuters, investors poured $5.6 billion into cryptocurrency funds and products in 2020, up more than 600% from 2019. This increased activity led to increased trading in the Bitcoin network, needing more energy.

Each $1 billion in inflows into Bitcoin uses the same amount of energy as 1.2 million cars”
– Bank of America

The Bitcoin network uses massive amounts of computational power to validate (Read more...)

Who are the Dividend Aristocrats in 2021?


This post is by Aran Ali from Visual Capitalist


Dividend-Aristocrats_Main

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The Dividend Aristocrats in 2021

Legendary investor George Soros once said, “Good investing should be boring”. But an increase in volatile themes today suggests this maxim has gone ignored by at least some market participants.

From a high level, we can view investments on a spectrum. Volatile assets like cryptocurrencies and SPACs are more on the exciting side of things. The boring side is likely where Dividend Aristocrat stocks lie.

The data above, from Sure Dividend, looks at all 65 Dividend Aristocrats, ranking them by their yield, sector, and years of growth.

What are Dividend Aristocrats?

The U.S. Dividend Aristocrats are a basket of 65 stocks in the S&P 500 index. These companies have been growing their dividend per share consecutively, for a minimum of 25 years.

This is easier said than done, since companies often distribute dividends quarterly. To pay and grow a dividend in the long run implies a business model that can withstand varying economic environments, including setbacks like market crashes.

Though dividend stocks may not carry the same excitement (Read more...)