Financial Journalism at the NYSE

Business Insider recently featured a video tour of the NYSE focused on financial journalism and it’s evolution over the past 220 years. The rapid progress just in the last decade is proof of Moore’s Law in the digital journalism realm via real-time dissemination and viewer interaction. Interesting idea from Bob Pisani regarding personal digital assistants to cope with mass information.

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Mineral Royalty Stream Financing

Resource streaming, also known as volumetric production payments (VPP) or metal purchase agreements, provides commodity exploration and production companies the necessary financing to bring projects into production. This has become an attractive financing option due to the fact that VPP’s are cheaper than equity (no shareholder dilution) and safer than debt, making this a “win-win” for both the mine operator and financing company. Streaming agreements allow the mining company to capitalize on proven reserves before the operation becomes productive.

These diverse agreements are crafted to emphasize each party’s strengths and protect against the others weaknesses. The underwriting financier enjoys the resource upside while avoiding the downside risk associated from operations. Stream financing allows the mine operator to leverage proven reserves to fund production or expansion, while avoiding many negative side effects associated with traditional financing methods. Full Report

[Photo: Buckdog]

Mineral Royalty Stream Financing

(Photo: Sandstorm Gold)

Checkout the updated Outsider Trading research page which now includes reports covering Mineral Royalty Stream Financing and The Hybrid Solution to Portfolio Management. The latest paper analyzes a lesser known, but quickly evolving, type of financing in the mining industry (abstract below).

Resource streaming, also known as volumetric production payments (VPP) or metal purchase agreements, provides commodity exploration and production companies the necessary financing to bring projects into production. This has become an attractive financing option due to the fact that VPP’s are cheaper than equity (no shareholder dilution) and safer than debt, making this a “win-win” for both the mine operator and financing company. Streaming agreements allow the mining company to capitalize on proven reserves before the operation becomes productive.

These diverse agreements are crafted to emphasize each party’s strengths and protect against the others weaknesses. The underwriting financier enjoys the resource upside while avoiding the downside risk associated from operations. Stream financing allows the mine operator to leverage proven reserves to fund production or expansion, while avoiding many negative side effects associated with traditional financing methods.

We have some great research projects and articles in the pipeline, stay tuned for more!

NY Fed: Maiden Lane III “AIG bailout” generates $6.6B

The fed recently sold its remainder share (ML III) related to the bailout assistance given to AIG during the recession, which resulted in a $6.6 billion profit.

“The completion of the sale of the Maiden Lane III portfolio marks the end of an important chapter—our assistance to AIG—that was undertaken to stabilize the financial system in the midst of the financial crisis. I am pleased that we were able to achieve our principal goal, which was to protect the U.S. economy from the potentially devastating effects of AIG’s failure, while demonstrating sound stewardship of taxpayer interests. I am proud of and commend all of the people at the New York Fed who worked tirelessly and diligently to get us here.”

Finance Leaders Conference – Chicago, IL

I hope everyone had a great Spring Break! I started with a FMA conference in Chicago and then to visit family in Boston. This was my first time to the midwest and I was very impressed by the finance scene. Thanks to WWU College of Business & Economics, Brittany, Oni and myself had the opportunity to attend the 2012 Finance Leaders Conference – two days filled with exchange tours, guest speakers and countless networking opportunities. Visiting the Chicago Board of Options Exchange was a surreal experience! Here are some pictures and video from the trip: