Winning Financial Strategies—Funding and Risk Considerations

Torbjörn Arenbo

Chapter Chapter 9 in Capital Allocation and Value Creation, 2023, pp 119-125 from Springer

Abstract: Abstract Based on the inherent characteristics of the business model, the desired risk level for the capital structure can be set. And based on the combined risk of the two, a funding and hedging policy can be developed. A higher risk level in the two first parts can be mitigated by a more conservative stance towards the latter part. We could call it “financial insurance”. How to play the game depends partly on risk preferences and partly on the potential gains from taking on and paying for “insurance”.

Date: 2023
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DOI: 10.1007/978-3-031-47048-6_9

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