Every concept, explained from zero

The Foundation.

One core idea a week, unlocked with an analogy before a single chart shows up. If the Financial Syllabus is the textbook, this is the conversation that makes the textbook make sense. Newest first.

All entries

From Issue No. 17 · Extra Credit Series

Why One Price Rising Makes Everything Else Rise Too

The second of two Fixed Income issues: the difference between a price shock that fades on its own and one that feeds itself through wages and expectations, plus the real math behind telling which is which.

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From Issue No. 16 · Extra Credit Series

Extra Credit Series: Fixed Income

This isn’t the usual issue. This is the Extra Credit Series. The first of two Fixed Income issues: why a bond’s price and its yield are mathematically forced to move in opposite directions, and how that seesaw builds into the entire yield curve.

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From Issue No. 15

The Empty House: Why Non-Yielding Assets Have a Hidden Cost

An asset that pays you nothing has to justify itself entirely through price, and the bar it has to clear keeps moving even when nothing about the asset changes.

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From Issue No. 14

Foreign Exchange Reserves: The Budget Behind a Currency Defence

A country can push its own currency down forever, because it can simply create more of it. Pushing it back up costs real reserves, and reserves have a bottom.

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From Issue No. 13

Who Actually Pays a Tariff

Not the foreign country at the door. The importer pays it first, then decides whether to absorb the cost or pass it on to you.

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From Issue No. 12

Futures Pricing

Why "Brent crude futures rose" and "Brent crude rose" aren't quite the same sentence and understanding the difference explains this week's price jump.

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From Issue No. 11

Appraisal Rights: The Right to Disagree With the Price

When a company is sold, shareholders can refuse the deal price and ask a judge to independently decide what it was really worth.

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From Issue No. 10

Quality of Earnings: Not Every Beat Is What It Looks Like

Not every earnings beat is real. The real number is often hiding underneath a one-time boost.

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From Issue No. 9

Exorbitant Privilege: What It Costs to Be the World's Currency

Being the currency everyone needs lets a country borrow more cheaply, but only for as long as the world keeps choosing it.

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From Issue No. 8

Leveraged Buyouts: Borrowing to Buy, and to Multiply the Bet

Put in a fraction of the price, borrow the rest, and even a small rise in value can hand you a much bigger return.

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From Issue No. 7

Second-Round Effects: Why Inflation Outlives Its Own Cause

Higher costs lead to higher wages, which lead to higher prices again. The cycle doesn't need the original cause anymore.

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From Issue No. 6

The Carry Trade: Why Money Always Chases the Higher Rate

When one country pays more interest than another, money flows toward it, no loyalty required.

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