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THE
FINANCE
BRIEF
Kansas State University Finance Department Newsletter 1
THE FINANCE BRIEF
A Newsletter from the Finance Department at Kansas State Univeristy Issue #1 - December 2020
Department Update
by: Ansley Chua, Department Head of Finance & Associate Professor
Inside
Dear K-State Family, this issue:
industry professionals. We are now leveraging all of this to
I want to introduce you to our first Department of Finance
launch the Center for Financial Analysis and expand avaliable 1 Finance Brief
Newsletter. The goal of this newsletter is update you about
opportunities to students. I am excited for the future of the
what is going on in the department. For those that we have 2 Department Update
Department of Finance, CBA, and K-State.
not seen in a while, I look forward to reconnecting you to the
K-State family. We hope to share updates twice a year. 2 FAB Faculty Member of the
I hope you enjoy our first edition of The Finance Brief. Within Year
this edition you will have the opportunity to be updated about
As we continue to navigate through these unprecedented 3 Diversity in the College of
our student organizations, learn about the economic impact
times, I wanted to take an opportunity to let you know some Business
of COVID-19, the launch of the Center for Financial Analysis,
of the various challenges we have encountered this past
and more! If it’s been a while, I hope this helps you feel 3 Investment Club Update
year and the positive things we are doing within the
reconnected as a Wildcat and a finance alum. Thank you,
department and at the College of Business. 4 Corporate Finance During a
alumni, for your support over the years and enjoy the first
edition of The Finance Brief. Pandemic
K-State has been severely impacted as the COVID-19
pandemic swept through this past spring. After spring break, 5 Alumni Update
Sincerely,
faculty had to quickly migrate to remote teaching.
6 Center for Financial Analysis
True to the K-State spirit, our faculty rose up to the challenge. 6 Career Coach Spotlight
Though there were a few hiccups, our students received the
same high quality of education you have come to expect from 7 Comparing the Data
Ansley Chua
K-State. I commend our faculty and students for adjusting
Department Head of Finance & Associate Professor 7 2020 Mentee of the Year
to the new structure, communicating effectively, and being
achua@ksu.edu
flexible during this time. As a university we are following CDC 8 SFA Update
guidelines to protect students, faculty, staff and visitors.
9 Alumnus.Faculty.Student.
Even with through these challenges, we have continued to
progress our goal of expanding opportunities for our students.
One of the Finance Department’s initiatives is to increase the Articles Submitted by Kansas State
geographical opportunity for our students. During the fall 2019 University Faculty.
Dr. Ansley Chua joined the Finance
semester, we brought our Student Finance Association (SFA) Department as an Associate Professor
students to Dallas. There we had the chance to showcase our in Fall 2011 and has been Department
high-quality student pursuing a degree in finance to potential Head since 2016. He received his PhD.
recruiting firms. from Florida State University in ‘09. His
research interests are corporate finance,
With the continued support of Jeff Gates and Gates Capital specifically in Initial Public Offerings and Editorial Policy:
Management, we brought a group of SFA students to New Executive Compensations. He’s taught Items submitted for publication in the
York this past spring. The students got to learn about careers Case Studies in Finance, International Finance Brief are subject to editorial
and networked with various K-State alumni in our nation’s Finance, Financial Modeling, review for punctuation, grammar,
financial hub, New York City. Additionally, this past spring we Entrepreneurial Finance, MBA/PMBA courses. To learn how spelling, format and content. The
held our third annual Gates Capital Stock Pitch Challenge to get involved with the Finance Department contact Finance Brief follows AP Style guidelines.
virtually, where students pitched their stock analysis to Ansley at achua@ksu.edu. Changes within these guidelines will be
made at the discretion of the editorial staff.
Finance Advisory Board Faculty Member of the Year:
Contact the Finance
Dr. Kate Wilkinson, Instructor Department:
Kate joined the Finance Department in 2016. She has her undergraduate in Finance from 2097 Business Building
Macquarie University in Australia, her master’s degree in Graduate Statistics from Massey Finance@ksu.edu
University in New Zealand, and her PhD. in Finance from Texas Tech. In 2019, Kate was 785.532.6892
selected by the College of Business to receive the 2019 Ralph Reitz Outstanding Teaching
Award and was recognized as Kansas State University’s Professor of the Week this past
February. Kate is an outstanding instructor with a reputation of going above and beyond for Follow Us on Social Media:
her students. A fun fact about Kate is she taught the head coach of the Arizona Cardinals. Facebook | LinkedIn | Twitter
On behalf of the Finance Advisory Board, we are pleased to recognize Kate Wilkinson as
the FAB Faculty Member of the Year.
Kansas State University Finance Department Newsletter 2
Stronger Together: Diversity, Equity,
and Inclusion in the College of Business
by: Olivia Law-DelRosso, Assistant Dean for Diversity, Equity, Inclusion & Belonging
Stronger together as we look
Every organization is on a journey to create a culture of Since 2014, K-State has won the HEED award to the future
belonging for all, no matter how they identify, to be for diversity every year, an honor fewer than a hundred A climate survey was conducted in spring 2020. This
representative of the demographics of their region, and universities have been selected for. We are the only data is informing the areas in which the university
serve diverse employees and customers. As individuals, university in the state to receive the designation. and College of Business need to improve. Strategic
we are also on a lifelong journey to understand identities
planning is underway to support the goals of the university
different from our own, be more equitable in our work, Our Black Student Union (BSU) has been named the best and our commitment to business students, faculty,
and inclusive of others. Real change on-campus requires in the BigXII 11 times in the past 14 years. We are the top staff, alumni, and corporate partners. Among the priorities
a strategic plan and individual commitment to this work. school in the state for LGBT+ students with awards from in the College of Business are:
We recognize this journey is never ending and we are Best Colleges and Campus Pride’s 2020, Campus Pride’s
committed to continual progression. 2017 Top 25 schools in the nation for LGBTQ inclusion,
¹
and 2018’s 30 Best of the Best LGBTQ-friendly colleges
This past summer, Kansas State University received and universities. Recruitment & retention strategies that support
national news attention for challenges we faced involving first-gen, BIPOC, LGBTQ+, & international
diversity, equity, and inclusion on campus. Black students K-State is one of 31 institutions to be selected as a First
2
shared their personal experiences on Twitter using the Scholars® Network institution for our support of
hashtag #BlackAtKState. A controversial tweet about first-generation students. In addition, K-State has received Initiatives to foster an inclusive climate
George Floyd by a K-State student sparked fury among awards as a top school for veterans. in the classroom and college overall
many, and our student athletes used their power
3
and influence to demand strategic change. In the College of Business Administration, we understand
the need for diversity in our classrooms and in the Initiatives to support cultural skill building for
President Myers responded with sincere empathy and business world. Our vision is to be recognized as a students who work with diverse peers,
commitment to change that will combat hate and regional leader in the development and success of colleagues, and customers
racism on campus. Action items included the creation students from under-represented groups, the cultural
4
of a new Student Ombudsperson Office to advocate for competency of all business students, and in having an Launch a new academic certificate
students experiencing a campus climate concern, inclusive climate. “Inclusion and Diversity in the Workplace”
examine university discrimination and harassment policies
with the goal to identify and address institutional bias Between 2007 and 2019, undergraduate U.S. Black,
⁵
and barriers, increase recruitment and graduation Indigenous, Person of Color (BIPOC) student enrollment
rates of students of color, among many others. in the college has increased by 75 percent. BIPOC and Partner with alumni & companies to support
international students comprise of 19.9 percent of total diversity, equity, & inclusion development of
Celebrating Successes enrollment in the College of Business.The first-to-second students, faculty, staff, & community members
While K-State is reflecting on strategic ways to improve year retention rate in 2018 was more than 25 percent
how diverse, inclusive, and equitable the campus is, the in- higher than the national average. Our undergraduate
stitution has been recognized for many successes over the U.S. BIPOC student graduation rate in 2018 is 15 For more information contact:
years. From our beginning as the first land-grant university percent higher than the national average and on par Olivia Law-DelRosso - she/her/hers
in 1863, K-State has had open enrollment for all students with the university as a whole. Assistant Dean for Diversity, Equity,Inclusion & Belonging
regardless of gender, race or creed. Through our history Instructor - Management
of strategic Diversity and Inclusion planning, we have College of Business
made strides in the right direction. olivia@ksu.edu
Student Org Update: Investment Club
by: Scott Hendrix, Instructor & Gates Capital Management Faculty Fellow
Scott Hendrix has been an
The Investment Club was founded in 2009 by Darin included two additional meetings with speakers, a
Instructor in the department of
Mainquist (‘09) and Seth Auld (‘11); and has continued lunch-and-learn event during Finance Week, and a group
finance at Kansas State since
to be a university-recognized student organization since. trip to the Berkshire Hathaway annual meeting.
2002. He teaches a variety of
While most investment clubs typically pool and invest Unfortunately, due to COVID-19, these events were
Finance courses and manages
members’ money, K-State policy and tax issues, as well cancelled and the university moved to a online setting.
the Investment Management
as transient nature of students, doesn’t allow for collective
certificate. He received his
investment of funds. To keep this early momentum going, a virtual meeting
Bachelors of Science and MBA
was with James Dykstal, CFA, who is a portfolio manager
in Finance from the University of
The mission of the group is two-fold: complete activities at DeMarche and Associates. Students who attended
Tennessee at Chattanooga and
in the Student Finance Association (SFA) by offering the event were actively engaged with questions.
has completed doctoral work in finance at the
students an additional opportunity to learn from/interact
University of Memphis. He has received multiple
with investment professionals, and support the Investment So far this semester, the Investment Club officers have
teaching and advising awards at the university and
Management certificate and associated activities. held meetings in-person and online as have allowed for
college levels. To learn more about the Investment
conditions allow. While a fall trip was not possible, we
Management Certificate or Investment Club, email
During the fall 2019 semester, Alex Cornwell (‘22) stepped are tentatively discussing a spring trip, hopefully to the
Scott at hendrix@ksu.edu.
forward to lead an effort to increase Investment Club Berkshire Hathaway meeting. Either way we look forward
activities. A meeting to gauge interest and initial planning to another strong year.
was held early in the spring semester with strong student
interest and involvement. Plans set at that meeting
Kansas State University Finance Department Newsletter 3
A Look at Corporate Finance During a Pandemic
by: Randy Stitt, Adjunct Instructor & Senior Vice President at Community First National Bank
One of the neat things about being able to teach in the forced to cut jobs. Nationwide, 20 million jobs were lost scale, for the last five years, the SBA has averaged $17.4
College of Business is getting to see students from in April; in a single month, unemployment jumped from billion annual total loans approved under its small
throughout Kansas and around the world. I like five percent to almost 15 percent. For banks, it could business loan program. In April and May this year alone
to emphasize to students the advantage of our location be disastrous on two sides: business loans to the bars, the SBA processed roughly $518 billion, or 29 years’
as a banking institution because Manhattan has two restaurants, and retail stores, and consumer loans for the worth of SBA loans. So far, the program has been
major institutions: Kansas State University and Fort laid off employees. This pandemic has affected everyone successful and saved thousands of jobs in Manhattan
Riley. It creates opportunities for a bank with both across the world. and throughout the U.S. However, as the six-month mark
housing and consumer loans. Students and soldiers approaches and our customers have to start making
tend to make a big ticket purchases in Manhattan. When I first heard about a government stimulus package, payments, banks do not have clear guidance from the
I began to research the program. The premise was that administration of the “forgiveness” portion of the program.
Given these institutions, Manhattan has always been this package was designed for business owners to keep
fairly buffered from major economic downturns. In 2008, their employees employed during the pandemic. The As banks continue forward, understanding the cash flow
Manhattan didn’t experience a sharp downturn from program became known as the Paycheck Protection of businesses and being flexible is important. We don’t
the “mortgage meltdown”. Retail and hospitality industries Program (PPP). The PPP gave employers funds based yet know the effects of the pandemic, it may be
fared well as people would still eat, drink, and shop, even on employee costs. Companies had to spend at least 75 permanent. The way that we do business is going, it could
in a recession. I preach that Manhattan is fairly buffered percent of the money to keep employees employed; radically change again, just like it did with the financial
from the economic pain that is felt by big cities because of employers could also spend up to 25 percent on rent or crisis. Regulations will change, business practices will
the two anchors that will always be in business. mortgage interest; if used as designed it’be forgiven. change, customer practices will change, and college
preparations will change. It will be interesting to see what
Even with our relative stability, the banking regulation As I researched the program, I noticed was it would be the next six months to year bring as we continune to
scrutiny increased. Smaller banks faced regulations that administered by the Small Business Administration (SBA) navigate through these “abnormal” times.
were designed to “reign in” larger banks’ lending through the banking system. I felt some angst because
practices. This impacted smaller banks significantly, as the borrower would have to sign a promissory note for
they had to hire additional staff to address regulations. I an unsecured loan at one percent. Thus, if the borrower
thought Manhattan was sheltered from large swings. doesn’t properly utilize funds, it must be repaid. This is in Randy Stitt is an Adjunct
opposite of the businesses’ expectation of free money. Instructor at K-State and
I was wrong! COVID-19 has impacted everyone the last teaches both Insurance and
year. In March, Kansas State pivoted to remote teaching Customer interest was huge, however, there were a lot Commericial Banking. He
and Fort Riley locked down. This affected all the business- of unknowns at the time. In the early days, the SBA’s received his B.S. in 1994
es that rely on these two institutions for revenue. Bars and typical answer to our question was, “we don’t have any from Kansas State University
restaurants were the first to be ordered to shut down, then guidance on that yet”. Though the banks were to in Elementary Education. He
came the stay at home order. This affected all businesses. implement the program, bankers still did not know most is currently a Vice President
Many businesses operate on a of the parameters. The program was set to launch on at Community First National
month-to-month basis or shorter. Bankers live by three Friday, April 3. On Thursday, April 2 at 6:45 p.m., the Bank and has been employed
words “cash is king!” This could not have been more banks received the “interim final rule” and by 3:30 a.m. in this capacity for 18 years.
evident than during the pandemic. on Friday, April 3, in the morning, the system through the Randy has 31 years of
SBA had not opened. Crashes and inability to access the banking experience. To
An employer’s biggest concerns is their employees and system plagued the program on the first day. contact Randy about corprorate banking or insurance
keeping them employed. When businesses are ordered courses at K-State email randys@ksu.edu
to shutdown, owners have to make some tough choices. Over that weekend, all of our officers worked to obtain
Without any ability to produce revenue, businesses are tens of millions of dollars for our customers. To put some
Phillips 66 Trip to Bartlesville, OK
Back in February, Finance and Accounting students were invited to visit Phillips 66 in Bartlesville, OK to hear more about the company, tour the campus,
and learn more about opportunites for students. Visits, such as this. provide Finance students with the chance to learn more about the industry and network
with professionals. If you’re interested in setting up company visits or network events with students contact the Finance department at finance@ksu.edu.
Kansas State University Finance Department Newsletter 4
Alumni News & Updates
We love hearing our alumni success stories! Whether it’s a new job, baby,
promotion, or retiring we want to celebrate with you! Congratulations to all!
Do you want to be in the next issue? Send us your update at Finance@ksu.edu.
Ashley Rowland (KSU ‘16) was promoted to a Senior
Specialist College Recruiter in the Human Resources Derek Wilkes (KSU ‘07) became a Vice Kassaundra Kirk (KSU ‘16) started as a Financial Analyst at her
department at BNSF Railway. President - Supervisor Manager at J.P. Morgan. local hospital.
Brett Scott (KSU ‘07) welcomed his third daughter, Olivia Dwayne Clark (KSU ‘72) is a Realtor at Coldwell Banker in
Frisco, TX. Laura Skinner (KSU ‘00) is an Investment Advisor
Scott, on May 6, 2020. Representative at LPL Financial.
Brett Whelan (KSU ‘15) became a Analytics Sales Specialist Francesca Hotchkiss (KSU ‘09) was promoted to Portfolio
Melissa McClarty (KSU ‘06) was promoted to
for Key Accounts. Manager at Wells Fargo.
Managing Director, Tax for Flint Hills Resources.
Bruce Brinkman (KSU ‘76) began a new job as a Frederick Stork (KSU ‘81) retired from from the postal service Michael Miller (KSU ‘90) joined the Advisory Board for the
Personal Financial Counselor for the military with Zeider after 34 years. KSU Personal Financial Planning Degree Program.
Entreprises. Bruce is currently stationed at the Naval
Operations Service Center in Oklahoma City. Miriam Schager (KSU ‘06) started a new job with a small
Grant Bergner (KSU ‘12) began as a Financial Analyst for
RIA in Denver, CO.
Ascend Learning.
Bruce Peters (KSU ‘69) has been enjoying retirement
Paul Stark (KSU ‘10) was promoted and relocated to
for the past nine years. He and his wife completed Jeff Aelmore (KSU ‘05) celebrated 15 years of service at Califorina with his current company.
funding for the Earl M Peters Finance Scholarship Financial Industry Regulator Authority (FINRA) and is a
this year to help current and future finance students Director of Risk Monitoring at FINRA’s Denver District office. Richard West (KSU ‘04) was promoted to President of
education.
Operations at his workplace.
Chad Vawter (KSU ‘00) was promoted to Chief Financial and Jill Wilks (KSU ‘91) began as Senior Bice President & BSA
Strategy Officer for Family HealthCare Network (FHCN). Officer for a small business bank in Lenexa, KS. Robert Cillessen (KSU ‘11) joined the family business traffic
control and pavement marking company as a Vice President.
John Kinsella (KSU ‘84) retired as a Quality Engerring Director in
Corey Rasmussen (KSU ‘98) celebrated 10 years as an New York state.
Estate Planning Attorney with Rasmussen Law, LLC. Russell Disberger (KSU ‘88) purchased a license PDP
Jon Hermes (KSU ‘10) was promoted to Deals Director - Representative Behavior assessment firm in Denver, CO.
Capital Markets Accounting Advisory Services at PwC in the
Courtney Siefkes (KSU ‘07) became a Certified Professional Seattle office.
Category Analyst through the Category Management Sarah McKittrick (KSU ‘15) started a new job as a Digital
Association in May and is currently working towards the Jon Schlatter (KSU ‘04) is a Shareholder at Morris, Strategy Manager at University of Kansas Health System.
Certified Professional Category Manager. Courtney works Laing, Evans, Brock & Kennedy, Chtd.
as a Senior Merchandising Analyst at Whole Foods Market
Global in Austin. Shauna Schwart (KSU ‘95) celebrated 25 years with Hallmark
Josh Schwagerl (KSU ‘12) started a new job as a Cards, Inc. Shauna is a General Manager for Hallmark
Technical Accounting Manager at Fiserv, Inc. International.
Debra Sheldon (KSU ‘75) is a Senior Accountant for
Straightline/Yoder Smokers.
Judith Cox (KSU ‘94) celebrated 25 years of working in finance. Traci Herrick (KSU ‘93) started a new job at State Street Bank.
Delton Klassen (KSU ‘78) is a Pricing Analyst at Kansasland Justin Estes (KSU ‘03) is a Senior Vice President Note: Alumni Updates are submitted by alumni and not vertified by
Tire Inc. at PNC Bank. the editors. The Finance Brief is not response for the information
contained in submissions.
2020 Gates Capital Management Stock
Pitch Challenge Winners
First Place Second Place Third Place
AVERY BOLAR & COOPER KINLEY REAGAN IRVIN & TAYLOR WERNER LANDRY BREWTON & ALEX GIANINO
PITCH: BALLARD POWER SYSTEMS PITCH: MLM - MARTIN MARIETTA PITCH: CARVANA
Kansas State University Finance Department Newsletter 5
Finance Department Launches Center for Financial Analysis
by: Sabuhi Sardarli, Associate Professor & Director of Center for Financial Analysis
The Finance Department is pleased to announce the These activities will include outside speaker events, Generous contributions from our alumni have made it
launch of the Center for Financial Analysis (the Center/ alumni networking opportunities especially within the possible for us to launch the Center. The Department of
CFA) within the Department of Finance in the College of target industries, trips to financial centers, conference Finance is looking for additional funding to secure key
Business Administration at Kansas State University. attendance/participation to expand networking, and staff positions and establish a budget to enhance student
The Center will provide unique opportunities for finance resources for students to better prepare their financial activities. We are excited to share our plans with you
students and help to expand the finance degree knowledge and interview skills. We are currently in the regarding the Center for Financial Analysis because it will
program offerings in the future. process of becoming a Chartered Financial Analyst play a role in improving student experiences and career
(CFA) affiliated program and the Center will continue to opportunities for our finance students.
The Center’s strategy and mission, have developed maintain our relationship with the CFA Institute. More
through discussions with alumni, students, and faculty. importantly, the Center will be the primary liaison Our Foundation development team advises alumni
From this, we have outlined two broad goals for the CFA: between target industries, alumni, and FA students, as and friends on ways to make their desired impact at
well as be tasked with expanding the department’s K-State. Reach out to Brett Seidl, Senior Director
First, the Center will be the home to financial analyst (FA) relationship with the industry. of Development, to start a conversation at
track students. FA is the latest addition to finance degree bretts@ksufoundation.org or 785-775-2051.
track offerings. Established in 2018, the program to better Finally, the Center will help FA students develop cohort
prepare students for investment banking and higher-end mentality with common physical space. The space will
buy-side careers. Although it is one of the four finance be used to hold current financial news discussions,
track offerings, it has a competitive application-based meetings regarding internship and job search efforts, and Dr. Sabuhi Sardarli is a
entry. Currenlly there are 30+ finance students pursuing a provide study space reserved for the FA track students. Associate Professor and the
degree in this track across all cohorts. Director of the Center for
The second broad goal laid out for the Center for Financial Analysis. He earned
Every year we have and will continued to admit 10 - 12 Financial Analysis is to play a key part in developing his Ph.D. from University of
students after a rigorous selection process, including an a master’s degree in finance (MSF) at Kansas State Florida in 2013, and joined
entrance exam and interviews with the faculty. Despite University in the future. The internal discussions K-State that fall. His research
being a young program, we plan to make the FA track regarding the degree characteristics such as general vs. interests include Empirical
into one of the desired programs within the College of specialized and on-campus vs. online, are currently Corporate Finance, Investments,
Business Administration. continuing among the alumni and the faculty. The master’s Mutual Funds,and Retirement
degree will utilize practitioners to provide real-world Savings Plans. To learn more
The Center for Financial Analysis will facilitate numerous experiential learning and integrate other disciples across about the CFA contact Sabuhi Sardarli at
value-added activities that will serve FA track students. the campus. The Center will be positioned to attract ssardarli@ksu.edu
practitioners who can teach within the MSF program.
Book Club
Over the summer Financial Analyst students
gathered with faculty via zoom for a monthly
book analysis. Books selected and discussed
covered topics related to investment management,
banking, and the buy-side of financial markets.
Finaincial Analyst have contiuned to meet with faculty
on Friday morning’s during the semester.
Finance Department and Career Coach:
How We Prepare Students For Post-College
by: Courtney Roszak, Office Coordinator
The Career Development Program is housed in the Student Success Center on Tip Bui began in late 2019 as the Finance Career Coach. From October 2019 – July
the first floor of the College of Business Administration. The Career Development 2020 he had 96 scheduled meetings with students and became the co-advisor of
Program’s mission is to provide world-class training, resources, and experiences to the Student Finance Association. Tip has his undergraduate degree in Business
guide students to a clear path of success. The program operates under the goal to Management and Leadership from Kansas University and his MBA from Avila
prepare business students for an internship or full-time employment, both during University. He has brought real-world experience from his prior work as a Strategy
their education and after. There are four areas of service within the Career Consultant with Accenture and as an Implementation Team Manager with CivicPlus.
Development Program: Executive Mentors, Corporate Partners, Career Accelerator He has experience in financial reporting, strategy consulting, and career development.
and Career Coaches by industry. The Career Coaches work with College of
Business students to development their leadership, communication, professional A Career Coach works closely with the department to help the students implement their
integrity and business skills while helping them learn how to market themselves to academic lessons to real-world situations. They focus on developing/refining resumes,
employers and gain internship experience. preparing students for interviews, helping students network, review applications and
learn what their best skills are.
Prior to the Fall 2019 semester, the Finance and Accounting departments shared a
Career Coach while the Management and Marketing departments each had their own. In addition, Tip works to build relationships with finance employers to give students
It was decided in spring 2019 that the Finance Department would open a search for a opportunity to receive an internship or full-time offer. There are many reasons a student
Finance-dedicated Career Coach, giving each academic unit a Career Coach to help decides to attend college and pursue their degree, one of which is to open the door to
students interested in pursuing the field post-college. opportunities in their chosen field. The College of Business and Finance Department
recognizes this, and works to prepare students for success.
Kansas State University Finance Department Newsletter 6
Comparing the Data:
the Current Crisis VS. the Great Recession
by: Eric Higgins, Associate Dean & von Waaden Chair of Investment Management
During these uncertain times, we have seen large shifts
in the economy including a significant increase in
unemployment, bankruptcies of small/large businesses,
and drops in GDP that indicate that we are currently in
a true financial crisis and markets were significantly
disrupted. This crisis is more of a “real” crisis where
economic activity has declined due to pandemic related
closures. A real crisis can spread into the markets, a true
4 What is the long-run impact of significant deficit
spending? We’ve added trillions of dollars to the
US debt through our stimulus packages. To an
extent, this is probably the right thing to do. Borrow
a recession. I want to review where we are economically financial crisis is more disruptive. when rates are cheap and invest in recovery. I do
and compare the situation to the Great Recession. worry about continued deficit spending and the
The Federal Reserve (Fed), has learned lessons from economy’s dependence on the government as a
Review of Economic Data the last financial crisis, and has been proactive during catalyst (or ultimately a driver) for economic growth.
this time. The Fed immediately cut interest rates to near
5
and Comparisons
zero and injecting enormous amounts of liquidity into
Stock market performance has been interesting to watch
financial markets through various bond buying programs. When or will we enter another finacial crisis
during this pandemic. At the start of the pandemic
This bond buying has ballooned the size of the like that of 2008 - 2009?
the S&P 500 index declined significantly, falling 34
Fed’s balance sheet and does, in my mind, create
percent. During the great recession, markets fell 50
some concerns for financial market stability in the long I hope I have made an effective argument that we are
percent and took much longer to rebound. While it is a
run as the Fed shrinks its balance sheet in the future. nowhere near the market conditions of the 2008 - 09
little early to say if this market recovery is sustainable
financial crisis. Some economists including Obama
but there are clearly market segments that have
Another area of concern to me is the Secured Overnight economic policy advisor Austan Goolsbee has suggested
rebounded significantly.
Financing Rate (SOFR), the rate that banks lend to each that a financial crisis is possible if there is another
other overnight. This provides liquidity and helps financial shutdown due to a surge in COVID-19 cases. This is
During times of crisis fear tends to reign in markets. The
institutions open daily and pay depositors. This market a possibility, I don’t view it as likely. A new shutdown
VIX (the CBOE S&P 500 Volatility Index), which gauges
almost collapsed in the last financial crisis and will cause would lead to several corporate bankruptcies in certain
the markets’ fear, peaked in March at a level higher than
major issues if it collapses during the current crisis. We economic sectors which will create some disruption in
the depths of the financial crisis in November 2008.
have seen some recent, smaller disruptions in this the credit markets, but financial institutions are much
During that time, we were literally close to a complete
market, driven by the banks’ preference to hold their less levered than they were in 2008 - 09 and credit
shutdown of financial markets. We were nowhere close
reserve at the Fed. As of now, the health of the isn’t concentrated in one sector (high-yield mortgages)
to that this past March. As we continue to navigate
Overnight Market looks good and is functioning well. as it was in 2008 - 09. Some banks may suffer but the
through this pandemic, I would expect to see
We will continue to watch this market as things progress. credit risks are less systemic than in 2008 - 09.
significant market movements and typical fear
responses such as a flight to quality or perceived
Outlook While markets are clearly turbulent and there is a great
quality (gold) as we go forward. However, the financial
As we move forward in these abnormal times, there deal of uncertainty about the future, I do believe it is
markets should continue to function.
are several questions what we must consider as our important to be optimistic. Our economy has rebounded
economy moves forward: from worse situations than the one that we are in
Unemployment is currently a big topic. Since the start of
today. I pray that all of you and your families are well.
1
the COVID-19 pandemic, we have seen a quick rise
in unemployment. As states began to reopen, we are
How will corporate earnings fare in the second, third,
seeing a decline in unemployment but it continues to Dr. Eric Higgins is a Professor
and fourth quarters? These earnings will give a good
remain high and it is unclear if the jobs losses will return and Associate Dean in the
indication of the overall health of the economy.
in the same sectors and how quickly these jobs will College of Business. He joined
Some sectors will lag and beimpacted by the pandemic.
return. During the Great Recession, the unemployment It will be interesting to see how different industries such the Finance faculty in fall 2001.
rate reached 10 percent, much lower than that of the as airlines, dining, and retail respond Eric earned his Ph.D. from
current crisis, yet it took years to return to “normal”. Florida State University
2
in 1996, and graduated Magna
Anytime we experience economic hardships, we see How will supply chain disruptions impact our Cum Laude with a B.S. in
gyrations in the credit markets. One indicator to look at is long-run economic recovery. We truly operate in a Finance from Kansas State
the spread between high and low risk credit. When global business environment and world-wide University in 1992. Eric began
comparing high quality corporate yields to treasuries, supply chain disruptions may add three to six months to his career as an assistant professor of finance at
we saw a spike in the credit spread in March, the same recovery as business reopen and rebuild supply chains. Drexel University in 1996. His research interests
3
spike we saw when comparing high and low quality are capital markets, corporate finance, and financial
corporates. These spreads have normalized and peaked institutions.
How much more stimulus will the Fed provide
at lower levels than during the crisis of 2008 - 09. given the size of the balance sheet and that
rates are at zero, policy options are going to be
It’s important to remember that the Great Recession was limited moving forward.
2020 Mentee of the year
Taylor Werner was awarded the 2020 Mentee of the Year through the College of Business Executive Mentor
Program for the 2019 - 2020 Academic Year. Taylor graduated in May 2020 with a degree in Finance.
Taylor’s mentor, Stephanie Siders said “It has been so fun to follow Taylor’s journey of the last year. I credit her
for taking initiative at every step of the way to ask advice, evaluate opportunities and make informed decisions.
Our formal mentor/mentee relationship may be ending soon, but I look forward to mentoring her thoughout her
career.”
Taylor now works at Commerce Bank in their Ascend Program as a Bank Trainee. Congratulations Taylor!
Kansas State University Finance Department Newsletter 7
Student Org Update: Student Finance Association
by: Tip Bui, Finance Career Coach
The Student Finance Association (SFA) is a student-run Holdings), White Rock Advisors, Bank of America and SFA will continue to provide opportunities for members
organization that works to develop financial awareness in Neuberger Berman. In Spring 2020, we traveled to New to engage with employers and gain exposure to different
its members by exposing them to the financial industry. York City to visit: J.P. Morgan, Bloomberg, BAML, career fields within the financial industry. In the “new nor-
SFA works to facilitate interaction between members, NYSE Columbia, Gates Capital Management, and mal,” we are following social distancing guidelines to keep
peers, faculty and individuals in the business community. Threadneedle, everyone safe by utilizing a hybrid model with on-site and
virtual engagement. We will continue to interact with a mix
As we look back at the previous academic year, SFA has Due to COVID-19, SFA hosted officer elections online for of employers in various financial fields to give members a
continued to offer its members ways to develop. A goal of the 2020 – 2021 year. The officers will work with faculty to full view of the industry and opportunties. We will rely on
SFA is to continue to engage with employers from across guide SFA members to develop professional skills that are alumni in the industry to discuss their roles and careers.
the financial industry through club meetings where various essential in today’s financial job market.
employers participate and educate students on their work We look towards tackling diversity through working with
within the industry. In addition, they share opportunities The 2020 - 2021 SFA officers are: other on-campus student organizations, such as Women
on how the students can join their organization, President: Adam Hazlett in Business and the Multicultural Business Student
whether that be through internships or post-graduation. Vice President: Jeffrey Thisius Association There is a lot of excitement for SFA this year
Diversity Chair: Madison Brown as we adapt to a changing environment, grow
Thank you to the employers who have dedicated time to Controller: Dylan Higgins membership and new financial leaders at Kansas State.
SFA, Commerce Bank, US Comptroller of the Currency, Bond Fund Chair: Matthew Paulson
Textron, Equity Methods, Koch Industries, and more. Promotions Chair: Carlos Ruiz If you would like to support the SFA or learn how to
provide opportunities through employer engagement,
As part of the SFA mission, last academic year the SFA also saw the handing of faculty advisory role from Dr. contact Adam Hazlett at achazlett@ksu.edu
organization took two trips outside of Kansas to visit Ansley Chua to Dr. Hardy Johnson, Associate Professor or Jeffrey Thisius at jeffthisius@ksu.edu.
various employers in different financial hubs, both trips and Tip Bui, Finance Career Coach. The students want to
included 12 finance students and faculty advisors. thank Ansley for his guidance over the years as advisor,
the opportunity members received to network with
In Fall 2019, we traveled to Dallas and visited: American employers and educational trips.
Airlines, Wingstop, Goldmand Sachs, Loan Direct (Azura
SFA Officers, advisors & NYC
President: Adam Hazlett Controller: Dylan Higgins Advisor: Hardy Johnson
Vice President: Jeffrey Thisius Bond Fund: Matthew Paulson Advisor: Tip Bui
Diversity: Madison Brown Promotions: Carlos Ruiz
Kansas State University Finance Department Newsletter 8
ALUMNUS
ALUMNUS.
FACULTY.
STUDENT.
3 Wildcats / 3 Questions
FACULTY
Victor Ojeleye
K-State Class of 2012
Cargill
Financial Planning & Analysis
Q What first interested you in Finance?
I’ve always been interested in math and science so I gravitated to
Engineering when I filling out my collegeapplications. While I was at
K-State, I had the opportunity to play basketball as a walk-on but this created a
conflict with the Engineering coursework. Knowing I loved math and wanted to
leverage in college, my mom recommended I pursue a degree in accounting.
Here my passion for accounting took off and transformed into curiosity about
Finance. I liked how finance looks at the application to business and
Dr. Eric Higgins
strategic growth plans of companies (plus finance professionals dress like they
K-State College of Business
have important business). I was fascinated with the ways to apply analytical
Professor/Associate Dean
models and market information to evaluate investments and business problems.
K-State Class of 1992
Q What first interested you in Finance?
I became interested in finance at a young age. My grandfather worked for ConEd in
Chicago in several different business roles. When he passed away my grandmother gave
Q Who or what motivates you?
My biggest motivations are helping others achieve their goals and
improving personally and professionally each day. I believe if I focus
one of his books, “Crowell’s Dictionary of Business and Finance”. It was ancient but really got me on serving others and contributing to their goals, it helps me become a better
thinking about business and finance. teammate and leader. I always look for how I can learn from others, projects, or
Q
experiences that I might apply in the future.
Q
Who or what motivates you?
Family motivates me, it’s why I came back to Manhattan. To be near family and raise my
What was your favorite spot on the K-State Campus?
kids here. Also, I wanted to be back with my K-State family. K-State means a lot to me
I loved the alcoves in Hale Library; I spent time there studying, and
and being a Professor/Associate Dean here is a tremendous honor.
Q
building friendships. I have fond memories of places, like Hale, at K-State.
What is your favorite spot on the K-State Campus?
The clock tower in front of the library
STUDENT
Q What first interested you in Finance?
I wasn’t sure what I wanted my major to be in college, but that I wanted to be in the College of
Business. Finance seemed like a good fit because I was interested in business and enjoyed math, I
began attending SFA meetings my freshman year and was able to get a sense of what opportunities there
were in finance for after graduation. When I toured K-State I also got to hear about how important it was to
the Finance Department that student’s got hands-on experience through speakers, trips, and interships.
Q Who or what motivates you?
I try to leave the world just a little bit better than I found it. Working with non-profits and focusing on
sustainability is something I’ve always been interested in, and I hope to merge my love for this with
my interest in finance. I hope to use my degree to help further organizations making a difference in the
world. Understanding money and how to utilize it is a huge benefit and I want to help elevate people and
organizations that are fighting current injustices and problems.
Q What was your favorite spot on the K-State Campus?
The large, wood tables on the second floor in the College of Business. They are large enough I can
spread out my laptop, a notebook, my planner, and a Radina’s coffee if I’m treating myself. Whenever
I see one of those tables is open I rush towards it and try to grab a seat; they are a hot commodity in the
Madison Brown college. I love this spot because while it is practical, it’s in a busier part of the building, so there’s always the
Senior, K-State Class of 2021 opportunity to chat to professors and friends as they head to classes. Plus you are in a great spot to receive
Financial Analyst Track Student some natural light from the atriums glass wall.
Kansas State University Finance Department Newsletter 9
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