A Common Denominator

Phil Nussbaum

Market Minute

May 12, 2017

Phil Nussbaum describes unlike cash flows and the difficult position that banking professionals find themselves in when they have to decide between many unlike cash flows. Using a series of non-bond scenarios, he walks through the math to show how institutions can use a common denominator to compare unlike cash flows—just as we did when we first learned fractions. Through risk/reward analysis, Phil demonstrates how to follow the dollars over constant scenarios.