## Market Recap 1/05/2022

Download PDF USA Major market indexes registered significant losses for the fourth consecutive week, highlighting April 2022 as the worst month for the markets since March 2020. The S&P 500 is still in correction territory, losing 8.8% in the last month, and being down approximately 14% from its January all-time highs. Once again technology stocks led the sell-off, as demonstrated by the technology-heavy Nasdaq Composite that remains in bear market territory after notching its worst Read more…

## Investment ideas for the earnings season: Aston Martin Lagonda

Download PDF Introduction In view of the coming season of earnings releases we analyze the famed British carmaker Aston Martin, and we propose: 1) a long investment on its equity based on a successful execution of its multi-year turnaround plan, and 2) a trade idea on the implied vol of the stock in relation to its earnings which will be announced on the 4th of May. Investment thesis Aston Martin Lagonda (AML) is a well-known Read more…

## Yield Curve Control – a viable tool for Central Bankers?

Download PDF Conventional economic theory suggests that Central Banks (CBs) should only intervene to influence short-term interest rates and allow the market to set long-term rates. However, in modern economic history, this belief has been put into question: most notably, the US and the Euro Area have reacted to the Great Financial Crisis by employing aggressive, unconventional expansionary monetary policy, namely Quantitative Easing (QE), to reignite the economy. For some countries, though, QE has not Read more…

## The Banker’s Toolkit: Power and Utilities

Download PDF Introduction The power and utilities industry refers to a category of companies that focus on providing services to satisfy basic needs. The five main businesses classified as utilities are electric power, natural gas, water supply, steam supply and sewage removal. The sector is mainly known for its stability as demand for utility services tends to remain steady, even during a recession. The utility industry accounts for approximately 3% of the S&P 500 and Read more…

## WHAT DRIVES CREDIT? Understanding the Cross Section of Expected Corporate Bond Returns

Download PDF Abstract While the literature investigating risk premia driving the cross section of stock returns is extensive, fewer studies analyze corporate bond returns. We set out to understand which factors and firm characteristics command a premium in terms of expected returns on corporate bonds, both in the investment grade and high yield spaces. We include a broad array of risk exposures ranging from financial characteristics to the macroeconomic environment. This is the first part Read more…