Magic Markets #130: Capital Structure 101

In this episode of Magic Markets, we talked about the “capital stack” in corporates and how they blend debt and equity into a capital structure that works for the business. After setting the scene with a short discussion on central banks, we covered topics like:• The equity to debt spectrum, with mezzanine finance in the middle• Examples of the types of spreads you can expect to see across different sources of capital• The concept of weighted average cost of capital• The benefit of having debt in an organisation and how this forces management to focus• The relationship between debt and other policy decisions, like dividends and share buybacks Magic Markets brings you institutional-level knowledge delivered in a way that is easy to understand. For more of our work, you can find our free shows here and our Premium library here.