Estimating the global price of USD inflation risk

Executive summary for the mildly-interested reader: Although the average holding return for 1-year maturity US Treasuries during 2014-2018 was a negative .50% inside the US, the estimated return to such USD inflation risk in the…

Biological asset valuation: Risk pricing

This article continues from my basic discussion of biological asset valuation which presented an overview of the financial reporting requirements for biological assets, the fundamental problem of biological asset valuation, and a general solution to…

AMAZON: “International cost of capital estimation”

Available now on Amazon. The book presents a definitive, concise treatment of the modern capital asset pricing theories and related empirical methods needed by serious finance professionals for developing unbiased and reliable estimates of international…

An idiosyncratic view on ICC estimation methods

Regarding international cost of capital (ICC) estimation … I became involved in valuation via M&A transaction advisory services for mid-market industrial companies circa 1990. Because I was based in the Midwestern USA, many clients were…

What all valuation professionals need to know about IPCPL

In the valuation profession, there have been long-standing, unproductive arguments about how best to estimate something called the discount for lack of marketability (DLOM) for assets traded only in private capital markets.  In contrast, estimation…

What all finance professionals need to know about international cost of capital

In his book, “A Theory of Global Capitalism: Production, Class, and State In a Transnational World” published in 2004, the well-known sociologist William I. Robinson documents the how increasing global capital mobility has resulting in…

International cost of capital estimation

You are a well-trained finance professional working in a globalized capital market environment. You need to know the basics of estimating international cost of capital. All that is required to develop accurate, reliable estimates of…

Exactly what we do, how, and why

“Financial economics” is a fairly opaque term and does not explain clearly what we do at McLelland + Palazzi | Financial economics.  We’ve had many questions recently about what we do for our clients and,…

BRIC agricultural yields: Growth factor effects

In my previous article “BRIC agricultural yields: Trends and theory“, I presented a number of graphs showing both BRIC country yield trends for maize, soybean, and sugarcane crops and posed a number of questions about…

BRIC agricultural yields: Trends and theory

Although BRIC countries (Brazil, Russia, India, and China) have quickly developed modern diversified economies over the last 20-30 years, agriculture remains an important part of their economies.  If one believes food self-sufficiency is beneficial to…