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Tomio, Davide

An Arbitrage Opportunity in the Futures Market: The ECB’s Quantitative Easing Program

Tomio, Davide ; Fernstrom, Aaron

F-2080 | Published August 28, 2024 | 14 pages Case

Collection: Darden School of Business

In early 2016, Tommaso de Marchi identified a potential arbitrage opportunity in the futures market due to the European Central Bank’s (ECB’s) quantitative easing (QE) program. The ECB’s bond purchase... Read More

Fixed- or Floating-Rate Debt? Let Me Google That for You.

Tomio, Davide ; Antonietto, Daniel

F-2073 | Published August 13, 2024 | 19 pages Case

Collection: Darden School of Business

In the summer of 2023, Google (a subsidiary of Alphabet Inc.) was planning to issue a $50 billion bond to fund R&D. Bruno Santos, a recent MBA graduate and new senior analyst in Google’s treasury divi... Read More

Integrated Circuits

Tomio, Davide

F-2068 | Published August 12, 2024 | 13 pages Case

Collection: Darden School of Business

On January 26, 2022, Dan Yu, treasurer for Integrated Circuits (IC), needed to decide between three financing options for a $200 million acquisition of Safe Technologies. The acquisition would signifi... Read More

Town Center at King of Prussia

Matos, Pedro ; Tomio, Davide ; Overstreet, George Jr.

F-2011 | Published August 08, 2024 | 15 pages Case

Collection: Darden School of Business

Basha Augustyn, a financial analyst at Retail Development Co. (RDC), has been tasked with evaluating a potential partnership with Lifetime Insurance for developing the King of Prussia Town Center. RDC... Read More

Spot and Forward Interest Rates

Tomio, Davide

F-2084 | Published August 08, 2024 | 6 pages Technical Note

Collection: Darden School of Business

Interest rates come in many varieties. The most common interest rates apply from today to some future date and are referred to as spot rates. But what if you agreed to lend money to someone at a 6% ra... Read More

Tesla's Convertible

Matos, Pedro ; Tomio, Davide ; Ge, Terrance

F-2069 | Published August 08, 2024 | 17 pages Case

Collection: Darden School of Business

On May 2, 2019, Dan Cohen, a financial analyst at Tesla, Inc., was tasked by the CFO team with proposing a thesis for issuing a convertible bond. Tesla needed to raise $2 billion for capital expenditu... Read More

AMC: A Short Story

Tomio, Davide ; Blasey, Ralph ; Wang, Yuan

F-2067 | Published July 31, 2024 | 23 pages Case

Collection: Darden School of Business

On March 15, 2021, a senior hedge fund analyst was tasked with formulating an investment thesis for AMC Entertainment (AMC). The stock had been highly volatile as the US economy emerged from the COVID... Read More

Interest-Rate Swaps

Tomio, Davide

F-2079 | Published May 29, 2024 | 6 pages Technical Note

Collection: Darden School of Business

This note introduces interest-rate swaps, financial contracts wherein two parties agree to exchange interest-rate cash flows, typically in the form of an exchange between fixed-rate payments and float... Read More

Bond Prices and Interest-Rate Risk

Tomio, Davide ; Schill, Michael J.

F-2075 | Published May 21, 2024 | 10 pages Technical Note

Collection: Darden School of Business

In this note, we cover how bond prices change as yields change. Students are shown that the price of a bond is a function of its promised payments and the prevailing required rate of return by investo... Read More

Option Greeks, Insider Trading, and the Heinz Acquisition

Tomio, Davide ; Augustin, Patrick ; Brenner, Menachem ; Subrahmanyam, Marti

F-1978 | Published | 10 pages Case

Collection: Darden School of Business

Just before Warren Buffett’s company, Berkshire Hathaway Inc, acquired H. J. Heinz Company on February 14, 2013, rumors had been circulating that the Omaha investing oracle had set eyes on the condime... Read More