A Common Denominator

Phil Nussbaum

Market Minute

March 21, 2018

If there’s one dilemma that unites all banking professionals, it’s the question of how to evaluate unlike cash flows—particularly their risk vs. reward. Using a series of non-bond scenarios, Phil walks through the math to show how institutions can use a common denominator to compare unlike cash flows—just as we all did when we first learned fractions. Through risk/reward analysis, Phil demonstrates how to follow the dollars over constant scenarios.