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Why Life Insurers and Asset Managers Must Join Forces to Win

BCG

Article Thursday, December 15, 2016 Life insurers are feeling the squeeze. In their efforts to adapt to this upside-down world, life insurers are focusing on optimizing their investment strategies and operations. The industry’s overall business growth has stalled, and investment income has become a critical mainstay.

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China Faces "Minsky Moment" on Ponzi Financing

MishTalk

Work by Nomura’s Chief China Economist indicates that more than half of Local Government Funding Vehicles, which borrow money on behalf of local governments to invest in infrastructure, have insufficient cash flows to pay interest or principal; the exact manifestation of Minsky’s Ponzi finance regime.

Finance 60
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AAA – Not to the Rescue

Martinka Consulting

When it comes time to sell however, they want to demonstrate that the business has more cash flow than the tax returns (and financial statements) show. Adjustments , as in, “you can adjust some of our operations to make more profit.” AAA in the world of driving a car is pretty cheap “insurance.”

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Small and Young Businesses Are Especially Vulnerable to Extreme Weather

Harvard Business

Almost one third of the firms negatively affected by the storm had no insurance of any Consistent with our predictions, young firms and small businesses insured at much lower rates. Others were unable to borrow to replace lost assets and address other operating needs, compromising their earnings potential.

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We Can’t Study Short-Termism Without the Right Metrics

Harvard Business

While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex. But the other indicators probably pick up legitimate differences in how companies in the sample operate, as opposed to whether they are myopic.

Metrics 32
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How Banks Can Compete Against an Army of Fintech Startups

Harvard Business

These low-cost and reliable sources of funds are from taxpayer-insured deposits and the Federal Reserve’s discount window. This amounts to putting a toe in the water, while keeping current operations relatively separate and pristine. Banks’ cost of capital is typically 50 basis points or less.

Banking 45
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What is the Professional Services Industry All About?

Progressus

Unlike traditional projects — which typically take place over a fixed duration, KaaS offers a predictable, ongoing revenue stream that improves cash flow and creates more resilience. A client will now pay for the overall gains such as tax savings, ROIs, insurance claims, and so on.