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• Case | HBS Case Collection | March 2009 (Revised November 2016)

  Washington Mutual's Covered Bonds

  Daniel Baird Bergstresser, Robin Greenwood and James Quinn

  Washington Mutual issued 6 billion euro of covered bonds in 2006. The objective of the case is to ask whether these bonds are mispriced in late 2008. The case is set in September 2008, and Washington Mutual is facing considerable distress due to mounting losses in its mortgage portfolio. Following investment bank Lehman Brother's Chapter 11 bankruptcy protection filing in mid-September, the price of Washington Mutual's covered bonds has fallen to 75 per 100 of face value. As these bonds are overcollateralized, the case asks students to evaluate the underlying collateral portfolio in the event of liquidation, as well as assessing the likelihood of different outcomes. The case takes place during a period of considerable uncertainty in the global capital markets.

  Keywords: Capital Markets; Financial Liquidity; Bonds; Mortgages; Price; Banking Industry; United States;

  Citation:

  Bergstresser, Daniel Baird, Robin Greenwood, and James Quinn. "Washington Mutual's Covered Bonds." Harvard Business School Case 209-093, March 2009. (Revised November 2016.)  View Details

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• Case | HBS Case Collection | December 2014 (Revised January 2016)

  Vanderbilt: Transforming a Health Care Delivery System

  Michael E. Porter, Zachary C. Landman and Derek A. Haas

  In 2013, Vanderbilt University Medical Center was the top ranked hospital in Tennessee by U.S. News and World Report, and among the leading academic medical centers in the entire southeast region. The 2012 US News & World Report hospital rankings listed Vanderbilt's care for kidney transplant (11th), women's health (16th), heart (25th), and cancer (29th) as among the best in the nation. Its $292 million in National Institutes of Health research grants ranked ninth in the nation. Over the previous decade, the medical center had grown revenues, more than tripled its operating margin, and was operating at capacity in many areas, with average inpatient bed occupancy approaching 90 percent, versus the national average of 68 percent.
  
  Despite its growth, Vanderbilt University Medical Center (VUMC) was facing a revenue shortfall of $250 million over the next two years, as more patients shifted to lower reimbursement Medicare coverage and there were rising price pressures from commercial insurers, employers, and individual consumers. Dr. Jeffrey Balser, CEO of the VUMC, had to address the shortfall while maintaining the quality of patient care, education, and medical research.

  Keywords: health care; health care industry; Service Delivery; Transformation; Health Care and Treatment; Corporate Strategy; Health Industry; Tennessee;

  Citation:

  Porter, Michael E., Zachary C. Landman, and Derek A. Haas. "Vanderbilt: Transforming a Health Care Delivery System." Harvard Business School Case 715-440, December 2014. (Revised January 2016.)  View Details

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• Teaching Note | HBS Case Collection | March 2012 (Revised February 2013)

  AQR's DELTA Strategy (TN)

  Daniel Bergstresser, Lauren Cohen, Christopher Malloy, Randolph B. Cohen, Timothy Gray, Daniel Bergstresser, Lauren Cohen, Christopher Malloy, Randolph B. Cohen and Timothy Gray

  Citation:

  Bergstresser, Daniel, Lauren Cohen, Christopher Malloy, Randolph B. Cohen, and Timothy Gray. "AQR's DELTA Strategy (TN)." Harvard Business School Teaching Note 212-084, March 2012. (Revised February 2013.)  View Details

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