Thinking About Timberland Investment Exposure to Interest Rates and Default Risk*

| comment (1) in Forest Finance & Economics, Forest Strategy, Forisk, Risk Management, Timberlands, Wood Flows & Cash Flows

According to The Economist[1], “Private equity benefits from a fig leaf of illiquidity,” which covers up for delays when valuing investment assets and obfuscates their true volatility. The inability to confirm value in real-time or robustly quantify risk sounds, to more…

Prices and Present Value: From Trans Ams to Timberlands

| no comments in Forest Carbon, Forest Finance & Economics, Forest Strategy, Timber Market Analysis, Timber Supply, Timberlands, Wood Flows & Cash Flows

When inflation rises, people talk about it. In my calls with forest industry investors and executives, these discussions center on current and future costs, prices, and cash flows. Generally, I observe that inflation increases fear by fogging the crystal ball more…

Ode to Alternative Assets: Timberland Investments, Liquidity, and Inflation

| comments (2) in Forest Carbon, Forest Finance & Economics, Risk Management, Timberlands

Markets for alternative, specialized assets – like vintage water pistols, 101-year-old scotch, and drivable Corvairs – must overcome high “search costs” to match suitable, qualified buyers and sellers. The abilities to evaluate, value, and manage such assets comprise a Rubik’s more…