Description: Feature article discussing the current state of interest rates globally.

Description: Column from the chairperson of the Investment Section.

Description: In *From Distress to Distinction*, Chris Droussiotis explores a novel approach to valuing distressed companies using option pricing theory, drawing parallels to the financial challenges faced by startups. With over 30 years in banking and startup advising, he emphasizes that both distressed firms and early-stage ventures endure periods of negative cash flow but retain potential for recovery. He combines Discounted Cash Flow (DCF) and the Black-Scholes Option Pricing Model to evaluate distressed firms’ recovery prospects and debt sustainability. A case study on Spirit Airlines illustrates this approach: though its current equity value is negative, projected future cash flows suggest significant potential recovery. Droussiotis concludes that strategic valuation, using trend, peer, and expected analysis, can reveal hidden value in distressed companies, guiding effective investment and restructuring decisions.

Description: This article discusses the new profession of financial engineering and the fit of actuaries in this profession.

Description: This article gives an overview and explanation of behavioral finance.

Description: Column on the latest Investment Section activities.

Description: Crossword puzzle for the February 2020 issue of Risks & Rewards.

Description: Update on a contest being held by the Investment Section.

Description: Read the June 2020 issue of Risks & Rewards published by the Investment Section. Newsletters provide practical information for the working actuary, articles on trends that impact sections and news about section activities.