Blog
Banking, finance, and modelling articles. New posts weekly.
- How to Calculate Mid-Year Discounting in a DCF Model
End-of-year discounting under-discounts cash flows by half a year of WACC. Mid-year discounting fixes this. Here's the formula, the Excel implementation, and the common mistakes.
Published 2026-04-21 - Deposit Beta in Bank ALM Models: 2022-2025 Calibration
Most US bank ALM models use deposit beta from the 2014-2019 cycle. Actual betas in 2022-2025 ran 2-3x higher. The recalibration framework, by tier, with EVE/NII shock implications.
Published 2026-04-21 - INDIRECT() in Excel: Why You Should Stop Using It
INDIRECT() is the most overused finance modelling function. Three specific problems and four alternatives by use case.
Published 2026-04-21 - The CCAR Stress Capital Buffer Trap for the 2026 Cycle
Revised SCB rules for the 2026 CCAR cycle make planned dividends a binding input to capital adequacy. Most regional bank models still treat dividends as a pure use of capital. Here's what changes and what to fix.
Published 2026-04-22 - Why Most CECL Models Drift After Year 2 (And How to Fix It)
CECL adoption was 2020. Five years on, methodologies have drifted. Examiners are flagging four specific patterns: stale R&S forecast horizons, undefended reversion paths, ungrounded Q-factors, and outdated pool segmentation. How to fix each.
Published 2026-04-22 - Building Financial Models Programmatically with Python and openpyxl
Hand-edited Excel models are unmaintainable at scale. Python + openpyxl makes the build script the source of truth. Here's our standard pattern: helpers, named ranges, the no-circularity rule, and how we validate all 18 models in one command.
Published 2026-04-22 - LBO Model Debt Sizing: How to Structure the Debt Stack
Debt sizing in an LBO model is not a single calculation — it's an iterative constraint problem with credit ratios, leverage multiples, and coverage tests all biting at once. Here's how PE professionals actually structure the debt stack.
Published 2026-05-07 - WACC for Banks: Why the Standard Formula Breaks Down
The textbook WACC formula assumes debt is a funding choice. For banks, debt (deposits) is the product. This one difference invalidates WACC for bank valuation — and most analysts apply it anyway.
Published 2026-05-07 - Excel Financial Model Best Practices: The 12 Rules That Actually Matter
Most best-practice lists are generic. These 12 rules come from building 18 institutional-grade models and watching finance teams use them under pressure. They're ranked by how often violating them causes real problems.
Published 2026-05-07