General Electric and GE Capital (with Joshy Jacob)
Case written in 2011.
Geography: US
The case discusses various options available to GE Capital to manage its
liquidity and solvency crises which were aggravated during the height
of the financial crisis of 2008. GE capital needs to decide how to
restructure its liabilities to meet its urgent liquidity needs while
maintaining its long-term growth and competitive advantage. The case
brings forth the interrelated and complex issues surrounding the choice
of long-term and short-term funding of a very large financial services
and industrials business combine. The case offers itself as a valuable
context to examine the capital raising choices during stressful market
and firm conditions.
Cases in Market Manipulation and Regulatory Violations
Case written in 2011.
Geography: US, Japan, India
This case brings together four incidents of market manipulation and
regulatory violations in different organizations in India and the UK.
It highlights the importance of regulatory compliance and ethics in
financial organizations. Principles-based regulation is more flexible
but can be ambiguous and uncertain. Rules-based regulation has the
advantage of clarity and certainty but encourages regulatees to find
loopholes in the law. The case illustrates the differences between
rules-based and principles-based regulation and the role of the appellate
process. It also points to the risks involved in pursuing strategies that
are not explicitly prohibited by law but would be perceived as unfair or
inappropriate.
ICICI Equity Issue 2007 (with Sobhesh K. Agrawalla and Joshy Jacob)
Case written in 2010.
Geography: India, US
The case discusses the choices relating to seasoned equity issuance for ICICI Bank, one of
India’s largest banking and financial services conglomerates, in mid 2007 shortly before the global
financial crisis begins to unfold. In this context, the case raises issues about the size and timing of
equity issuance. It also highlights reliance on external finance for large rapidly growing companies
in emerging markets. ?The bank which operates in 17 countries and is listed in India and the
United States also needs to decide whether part of the new equity should be raised in foreign
equity markets.
Mizuho Securities and other trading errors
Case written in 2010.
Geography: Japan, US, India
Electronic trading systems allow trades to be executed rapidly and
efficiently, but also make it easy for traders to make errors by punching
in the wrong numbers particularly while trading in a hurry. This case
describes a large trading error at Mizuho Securities that cost the firm
$335 million as well as two other similar incidents in India and in the
United States. The case describes the deficiencies at the trading firm
and at the exchange that lead to such mishaps and also discusses how
traders and exchanges could respond to these errors.
Vedanta Resources plc.
Case written in 2008.
Geography: India, UK
Describes how and why the Vedanta Group shifted its primary listing from Mumbai
(India) to London (UK). Raises issues of valuation and corporate governance.
Fannie Mae: Accounting for Interest Rate Caps.
Case written in 2005.
Geography: US
A case on the intricacies of hedge accounting under the US accounting standard SFAS 133. The
issue involves the separation of the value of an interest rate cap into time value
and intrinsic value.
The case also raises issues about the correct application of the accounting standard
(APB 20) and the distinction between change of accounting principle and correction
of accounting error.
Wipro's Billion Dollar Hedge.
Case written in 2005.
Geography: India
A case on foreign exchange risk management involving the hedging of anticipated
foreign currency revenues. The case raises issues of risk management policy,
hedge accounting and exchange rate forecasting.
Ashanti Goldfields Company Limited (with Samir K. Barua).
Case written in 1999 revised 2002.
Geography: Africa (Ghana/Tanzania)
A case on the use of derivatives in managing commodity (gold) price risk covering
strategic reasons for hedging, the linkages between corporate strategy, capital
structure and the hedging strategy, as well as the risk analysis of derivative
positions.
Arvind Mills Limited.
Case written in 1999.
Geography: India
Case on the evaluation and use of swaps highlighting the problems in evaluating
a swap in a highly illiquid and turbulent market.
Bank NISP (with V. Raghunathan and Chetan Bhagat).
Case written in 1998 revised 2000.
Geography: Indonesia
As Indonesia faces the full brunt of the Asian crisis, a small, well
managed, healthy bank confronts difficult strategic choices in the
face of a regulatory regime biased towards big banks.
Daewoo Group.
Case written in 1998 revised 2000.
Geography: Korea
As the Asian crisis hits Korea, time is running out for one of
its most ambitious and heavily indebted conglomerates (chaebol).
Siam Cement Public Company Limited (with V. Raghunathan).
Case written in 1998 revised 2000.
Geography: Thailand
When the Thai baht plunged against the dollar in 1997, the billion
dollar foreign exchange loss on Siam Cement's dollar loans exceeded
the company's net worth. With hundreds of millions of short term
debt falling due soon, the company must restructure its debt and its
business to survive.
Phatra Thanakit Public Company Limited, 1998 revised 2000 (with V. Raghunathan).
Case written in 1998 revised 2000.
Geography: Thailand
In the midst of the Asian crisis, one of Thailand's leading finance
companies faces a grim future as rising loans losses wipe out more than
half its capital.
SK Securities (with V. Raghunathan).
Case written in 1998 revised 2000.
Geography: Korea
A case on the legal risks in OTC derivatives. When a derivative
transaction on the Thai baht between a top US bank and a leading
Korean financial services firm leads to losses of over $500 million,
it ends up in the courts in both Korea and US.
Eurotunnel: Debt Renegotiation (with N. Venkiteswaran).
Case written in 1997
Geography: Europe (UK/France)
Complex case covering (i) corporate financial restructuring under financial
distress, (ii) infrastructure financing and restructuring, or (iii) shareholder
value management under financial distress.
Eurotunnel: Foreign Exchange Exposure, 1997.
Case written in 1997
Geography: Europe (UK/France)
A capstone case on the measurement and management of foreign exchange exposure.
Highlights (i) the meaning and measurement of foreign exchange exposure
in the case of a company with global operations and a global shareholder
base, (ii) the use of operating decisions and policies to manage foreign
exchange exposure, (iii) the role of creditors and other stakeholders in
determining the risk management policies of a company.
Aokam Perdana Berhad, 1997 (with V. Raghunathan).
Case written in 1997
Geography: East Asia (Malaysia/Indonesia/Singapore)
Case on a dual currency convertible bond highlighting valuation and risk
analysis of a complex financial instrument in an international context.
Reliance Industries Limited: Global Financing Decisions, 1997
Case written in 1997
Geography: India
Case on international financing decisions covering capital structure decisions,
choice of maturity, market timing, and foreign exchange risks.
Coimbatore Yarns' Mark Receivables (A) and (B) (with S. K.Barua)
Case written in 1997
Geography: India
Case on foreign exchange risk management covering currency of invocing,
transaction exposure and accounting implications of forward contracts.
Essar Steel Limited (1996).
Case written in 1997
Geography: India
Sequel to Essar Steel Limited (1993) and (1994). Apart from raising the
issue of the various risks involved in a complex financial instrument (with
the benefit of some hindsight), the case highlights difficulties in hedging
foreign exchange risk of a foreign currency convertible bond. The case
also brings out several issues related to financial distress.
Essar Steel Limited (1994): Comparing Cost of Funds,
Case written in 1997
Geography: India
Sequel to Essar Steel Limited (1993). Apart from raising the issue of true
cost of borrowing (with the benefit of some hindsight), this case brings
in the added dimension of comparison with a competitor who achieves an
apparently cheaper financing.
Essar Steel Limited (1993): Valuation of Euro Convertible Bonds,
Case written in 1994, revised 1997
Geography: India
Case covering valuation of foreign currency convertible bond with embedded
call and put options. Apart from issues in option valuation, the case raises
issues of exchange risk, interest rate risk and highlights the true cost
of borrowing for a company issuing a complex financial instrument.
TISCO Rights Issue (A): Hobson's Choice (with Samir K. Barua)
Case written in 1992
Geography: India
Comprehensive case covering fundamental analysis, asset allocation, market
risk, hedging and short sale possibilities, linked issue of multiple instruments,
inter-linkages between operations in primary and secondary markets. This
is the capstone case in a series of cases revolving around a public issue
by one of India's largest private sector companies.
TISCO Rights Issue (B): Strength of Foundations (with Samir K.
Barua)
Case written in 1992
Geography: India
A case on fundamental analysis. Complexities of adjustment for bonus and
rights issues in applying the Gordon dividend growth model.
TISCO Rights Issue (D): The Elusive Beta, (with Samir K. Barua)
Case written in 1992
Geography: India
Case on the mechanics and subtleties of beta computation (beta is a measure
of risk in modern portfolio theory).
TISCO Rights Issue (E): Unstable (?) Betas (with Samir K. Barua)
Case written in 1992
Geography: India
A case on the stability of betas over time particularly changes in betas
induced by environmental changes like deregulation.
Of (Human) Bond(age) (with Samir K. Barua)
Case written in 1990
Geography: India
A case on bond portfolio management focusing on the use of duration to
control interest rate risk.
Razor's Edge 1990 (with Samir K. Barua)
Case written in 1990
Geography: India
A case on stock portfolio management focusing on tactical asset allocation.
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