Project Finance 101 – the cornerstone of infrastructure

Download PDF Introduction Project Finance is a method of financing for capital-intensive infrastructure projects that depends on project cash flows to cover operating expenses and pay outstanding debt. Project Financing may refer to the construction of new installations, or the refinancing of already existing ones. It is used in many industries including Power, Natural Resources (Mining, Oil & Gas, Petrochemicals), Infrastructure (Transportation, Water and sewerage, Waste & recycling), Leisure, and Telecommunications. It is important to Read more…

Big pharma in the age of COVID-19

Download PDF Introduction The pharmaceuticals sector has been the center of attention lately for the successful vaccines trial that finally gave some hope of recovery, even though it wasn’t without controversies. However, a lot more has been going on in the industry that might change the reputation that the industry has in the eyes of the public. Here we list all the major trends currently affecting the industry. 1. Pharma is racing to find a Read more…

BuzzFeed’s acquisition of HuffPost: a merger of survival

Download PDF BuzzFeed – privately owned company HuffPost – private company owned by Verizon Media Introduction On November 19th, 2020 BuzzFeed and HuffPost, two of the largest players in digital media, announced the latter’s acquisition in a stock deal. The transaction is part of a larger agreement between HuffPost’s owner, Verizon Media, and BuzzFeed, according to which the companies will syndicate content on each other’s platforms and look to jointly explore advertising opportunities. This deal Read more…

The Disruption Of The Highly Improbable

Download PDF Introduction  Once again, we are approaching the end of the year, but this time, perhaps more than ever, the takeaways to bring home look exceptionally valuable: living in a world full of uncertainty due to the spread of COVID-19 pandemic represents indeed an increasingly demanding challenge for market participants at any level, from retail investors to fund managers. In this article, along with a brief review of COVID-19 pandemic effects on financial markets, we would try Read more…

Market Recap 06/12/2020

Download PDF US US stocks went further into top territory this week. S&P was up 14.50% YTD at 3,699.12 points; DJIA up 5.89% YTD at 30,218.2 points, recording the best monthly performance since 1987. Similarly, small-cap Russel 2000, up 13.36% YTD at 1,891.35 points, showed its best gain since inception, 1978. The 2y-10y differential in the Treasury curve recorded its widest level since early 2018, as the 10y yield climbed much of the days to Read more…

Value Factor in the intangible Economy

Download PDF Introduction The modern economy is increasingly driven by intangible assets, such as intellectual property, brands, and networks. However, common measures of value have failed to adapt to this transformation. The path forward involves both accounting reform and improved methods to directly value intangible assets. Value strategies have worked well across multiple asset classes, periods, and geographies. However, for stocks, the last decade has been tough, with value strategies facing significant headwinds, especially in Read more…

Rise of the champions: the European Payments industry consolidates around its two largest players

Download PDF Introduction From barters and coins to cash pooling to cashless exchanges, the payments industry has undergone a massive transformation since its inception. During the era of booming e-commerce, payment methods are evolving rapidly, with the scope of becoming faster, simpler, and more secure for all parties. The main segments of the payment ecosystem include acquirers/processors, issuers, card networks, gateways, ISOs/MSPs, and non card payments. Acquirers/processors Acquiring (merchant) banks, also known as payment processors Read more…

Green steel – the next largest industrial investment?

Download PDF An introduction to steel making and its impact on global greenhouse gas emissions The steel industry is of key importance for the global economy as steel is a key input in many other industrial sectors essential to the functioning of the wider economy, such as mechanical and electrical machinery, motor vehicles, domestic appliances and the construction industry. Indeed, according to a report published by Oxford Economics, steel making contributes directly to 3.8% and Read more…

BBVA sells its US operations to PNC in second-biggest banking deal after the financial crisis

Download PDF BBVA (MCE: BBVA.MC) – market cap as of 27th November 2020: €26.34bn PNC (NYSE: PNC) – market cap as of 27th November 2020: $53.23bn Introduction On November 16th BBVA, Spain’s second-largest bank, and PNC Financial Services Group announced that they have signed a definitive agreement for PNC to acquire BBVA USA Bancshares Inc. (excluding BBVA Securities) for a purchase price of $11.6bn to be funded with cash on hand in a fixed price Read more…

A Commodities’ Primer

Download PDF Introduction This article focuses on one of the oldest and most complex trading assets available – Commodities. From its natural explorations to its transformations and massive chains of transportation and storage transactions, Commodities are at the core of economies around the world and a major driver of globalization. Below, we discuss the story of the modern commodities trading industry as well as explore ways of calculating its fair value and how to hedge Read more…

The Lira, inflation and COVID-19: an overview of the Turkish economy

Download PDF The Lira, inflation and COVID-19: an overview of the Turkish economy Political context Turkey’s political scene was recently in the news with the departure of Finance Minister Mr. Albayrak, a powerful politician and the Turkish President’s son-in-law. The departure of Mr. Albayrak was seen as favourably by investors, since it showed that Mr. Erdogan is now more willing to take the required measures to put the country’s economy back on track. The first Read more…

Market Recap 29/11/2020

Download PDF US The US stock market edged higher after the announcement of another Covid-19 vaccine breakthrough led by AstraZeneca and Oxford University, yielding higher levels of efficacy than what regulators seek. This development reflected on the markets by a 0.6% rise in S&P 500, outrunning the tech-heavy Nasdaq composite that advanced 0.2%. Moreover, the rollout of a vaccine triggered optimism within the market together with hopes of a global recovery from the coronavirus crises Read more…

2020 Residential Real Estate Report

Download PDF Introduction The COVID-19 crisis has proven to be especially challenging for the real estate sector. Retail, office spaces, and any other type of real estate that functioned on the premise of people getting together in one space has been squeezed tight by the grips of government regulations as well as recommendations and best practices on how to avoid the spread of the virus. These spaces being the centre of economic activity for centuries Read more…

Credit Default Swaps: indices, curves and their relationship to volatility

Download PDF Introduction Credit Default Swaps (CDSs) have had an interesting trajectory to say the least, starting out as a niche derivative, they rose to prominence after the Russian financial crisis of 1998, ballooning into a market worth an enormous $62.2 trillion in 2007. In 2008, this market promptly collapsed, producing a mushroom cloud worthy of Warren Buffet’s designation of CDSs as ‘financial weapons of mass destruction.’ However, the CDS market is far from finished, Read more…

The airline industry – beyond recovery?

Download PDF An introduction to the airline industry and the ecosystem around it When assessing the state of the economy of a country, sometimes we overlook the importance that the airline industry plays in its smooth functioning. This is due to the fact that its contribution to GDP is only a minor part in most developed nations (0.3% in OECD countries). However, a more careful analysis would reveal the vital role it has in stimulating Read more…