The hottest Capital Substack posts right now

Institutions are requesting the Fed to exclude Treasuries from their leverage ratios post the Bank Term Funding Program, which is causing concern within the financial industry.
Capital requirements in banks are crucial for preventing insolvency, with risk-based and leverage ratios being the two main types of requirements.
Leverage ratios do not consider the risk levels of assets and require banks to maintain a specific ratio of capital to assets, helping ensure financial stability.

Gravitational impact of money increases with scale, where extreme wealth creates societal problems beyond personal purchasing power.
Tech billionaires accumulating astronomical sums of money have industry-warping and societal impacts, shaping the future and institutions.
The concentration of vast capital in the hands of a few leads to comical ineptitude and problems society struggles to address, highlighting flaws in the tax system.

The importance of being mindful of the influence our words can have
The significance of pushing for profitability and runway data in business endeavors
The value of haiku as a medium for expressing thoughts and emotions

The Mindset Value Fund had a strong performance, up 14.2% in Q2 2023 and 33.3% for the year.
HireQuest, a staffing company, saw a 25% stock increase after entering the Russell 3000 index.
Grown Rogue, a cannabis cultivator, is positioned for significant growth and revenue increase.

Factors for increasing wealth: Create economic value, capture/control that value, apply leverage, compound capital over time.
Factors for decreasing wealth: Over-consumption, charity, catastrophe, legacy.
Balancing wealth: Focus on creating, capturing, and compounding wealth while avoiding over-consumption and catastrophe.

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Funders should avoid pigeonholing organizations for illusory efficiency.
Organizations may need to vertically integrate for success in emerging markets.
Being overly capital efficient can lead to costly failures in system reinvention.

VC returns have been declining due to misaligned incentives and overcapitalization
The SaaS business model requires efficient customer acquisition and cash flow
Nurturing relationships as a core product feature is essential for success

The purpose of stress tests for banks in peacetime is not necessarily to predict future crises, but to ensure banks have enough capital and that the tests are tough and variable.
It's important for stress test scenarios to change and remain tough to prevent banks from manipulating their capital levels and misrepresenting their financial health.
The public stress test process during peacetime may not have a significant impact on capital allocation to the banking sector, unlike crisis-time stress tests.

Addiction is a function of conditional probability.
Speculation is a reflection of the human struggle to impose one's will on the world.
Artificially subsidized cost of capital distorts the understanding of risk in society.

The Central Bank of Nigeria has issued a revised guideline on regulatory capital for non-interest banks in Nigeria.
Financial institutions in Nigeria are required to adhere to the updated capital requirements outlined in the guidelines.
The Exposure Draft of the Revised Guidelines on Regulatory Capital for Non-Interest Banks in Nigeria is available for download on the CBN website.