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This week, Kristen and Jen dive straight into the finance headlines with a M&A story: Perplexity, an AI startup valued at $18 billion, has made a $34 billion all-cash bid for Google Chrome. Kristen unpacks why this is virtually unprecedented in dealmaking, explaining how the size mismatch, lack of financing capacity, and Chrome’s not-for-sale status make the offer so unusual. They revisit the AOL–Time Warner merger as the closest (though still imperfect) precedent and debate whether this might be the “canary in the coal mine” for overheated AI valuations.

Jen follows with a contrarian take on the Federal Reserve: even if the Fed cuts rates in September as the market expects, long-term interest rates might actually rise. She explains how inflation pressures, market expectations, and a “cash trap” dynamic could lead to higher mortgage rates, an unintended consequence that would frustrate borrowers hoping for relief. The discussion also touches on softening labor market signals, political pressure on the Fed, and why rate policy in a high-inflation environment can move markets in unexpected ways.

The episode then shifts to signs of stress in private credit markets, focusing on the rise of “PIK” (payment-in-kind) interest arrangements. Kristin explains how PIK structures work, why an uptick, especially in “bad PIK” where struggling borrowers opt to defer cash interest, can be an early warning for financial trouble, and how this fits into the broader credit cycle. They close with a debate on networking ethics after a viral Reddit thread about circulating analyst email lists, and the importance of genuine, trust-based connections in breaking into competitive industries.

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In this episode of The Wall Street Skinny, Kristen and Jen sit down with Professor Emily Oster, a Harvard-educated economist with a PhD and a faculty position at Brown University where her studies focus on approaches to finding causality in observational data, as well as the best-selling author of "Expecting Better", "Crib Sheet", and "The Family Firm". Oster is known for her data-driven approach to pregnancy and parenting. The conversation centers on the theme of “good data” vs. “bad data”, how flawed methodologies or biased sampling can lead to misleading conclusions in everything from public health studies to economic indicators. She explains what it means to be an economist, outlines the hierarchy of research, and underscores the importance of asking the right questions. The discussion also tackles the truth about conceiving at an advanced maternal age, what the data says about parenting choices like sleep training, and the trade-offs between daycare and staying home.

Kristen and Jen also get into markets, unpacking the July non-farm payrolls report, which missed expectations and saw a significant downward revision to prior months, erasing 258,000 jobs from May and June, the largest adjustment since COVID. They explain why such revisions matter: the Fed’s dual mandate depends on both employment and inflation data, so changes like this can shift interest rate expectations. The hosts also address the political backdrop, from President Trump’s firing of the Bureau of Labor Statistics Commissioner to the broader implications for trust in economic data, with Jen noting that tariffs and immigration policy could affect small business reporting, introducing lags and inaccuracies.

This offers practical insight into how listeners can interpret data, whether for personal decisions, or investment strategies.

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Our content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice.

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In this episode of the unofficial companion podcast to HBO Max's hit show, Industry, hosts Jen and Kristen dive deep into the financial intricacies and dramatic moments of Season 3, Episode 2 titled 'Smoke and Mirrors.'

They kick off the discussion by analyzing the thematic significance of 'Smoke and Mirrors,' tying it to both magic tricks and the episode's plot centered around deception and storytelling in the finance world. They recount how the episode unfolds at the London Stock Exchange with the IPO of Henry Muck's green energy company, Lummi, caught in a frenzy due to a sudden power outage and the ensuing chaos on the trading floor at Peerpoint. The hosts compare this fictional IPO with real-life events such as the Facebook IPO disaster, adding valuable insights into IPO procedures, trading mechanisms, and the role of investment banks in supporting stock prices post-IPO. They explore the role of underwriters, the use of green shoes, and the pivotal decision-making and risk management during high-stakes trading situations.

The hosts also bring forth significant comparisons with real-world financial scenarios, making this episode not just a recap but an enriching learning experience.

For a 14 day FREE Trial of Macabacus, click HERE

For 20% off Deleteme, use the code TWSS or click the link HERE!

Our Investment Banking and Private Equity Foundations course is LIVE
now with our M&A course included!

Shop our LIBRARY of Self Paced Online Courses HERE
Join the Fixed Income Sales and Trading waitlist HERE

Our content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice.