Download PDF USA All major indexes declined over the week with the Dow Jones Industrial Average being the best of the bad, retracting on previous week’s gains as uncertainty over incoming policies grew, leading to disparities in sector returns. The Russell 2000 fell by the most (-3.99%) following its rally Read more…
Download PDF Introduction European innovation has finally gotten to American shores. Over recent years, synthetic risk transfers (SRTs) have become an increasingly relevant tool within banking, prompting both industry excitement and regulatory concern. In a nutshell, SRTs are financial transactions that banks use to transfer the credit risk of certain Read more…
Download PDF Disclaimer: This article is intended solely for informational purposes. Bocconi Students Investment Club does not endorse any political candidate or party. Introduction Millions of Americans this week have cast their ballot for the presidential election, which has been undoubtedly one of, if not the most important event of Read more…
Download PDF Introduction It has been long established that the global hub for venture capital (VC) investments is the US, with California, New York and Massachusetts being particularly strong in this type of alternative investment. Europe, on the other hand, is notorious for lagging in the scene, with tight regulations, Read more…
Download PDF Introduction In recent years, major water suppliers in England, privatized by Margaret Thatcher’s government in 1989, have encountered significant financial difficulties due to critical level of leverage in the higher interest rate environment and substantial fines for sewage pollution. As of 2023, 8 companies had debt-to-capital ratios exceeding Read more…
Download PDF Introduction As announced in our previous episode, the second article in our Backtesting series will discuss Cross Validation and introduce a new Backtesting strategy, first presented by Giuseppe Paleologo (2024). If you haven’t already, we recommend reading the first episode before proceeding with this article. Please note that Read more…
Download PDF Introduction High levels of leverage have been common practice to increase returns since the genesis of the private equity industry, but as the industry evolves financial sponsors have come up with new and innovative ways to lever up not only their portfolio companies, but entire portfolios as well. Read more…
Download PDF Introduction In our previous exploration of sports betting, we examined basic market efficiency and evaluated whether straightforward strategies could uncover statistical arbitrage opportunities. Our findings showed that, while betting markets may appear exploitable at first glance, they remain highly efficient, leaving little room for profit under simplistic approaches. Read more…
Download PDF USA The S&P 500 Index advanced this week, driven by gains in the utilities and real estate sectors. Energy stocks, however, faced losses in tandem with a decline in oil prices, as concerns over potential Israeli strikes on Iran’s oil and gas infrastructure began to subside. In terms Read more…
Download PDF Introduction In fixed income trading, managing interest rate risk is a critical task for traders and portfolio managers. While traditional hedging tools that rely on duration or convexity are a good indication of how prices react to yield changes, they are based on limited assumptions with significant pitfalls Read more…
Download PDF What has happened in the last 5 years? Over the past five years, M&A activity has experienced dramatic fluctuations, reaching both record highs and record lows. The onset of the Covid-19 pandemic in 2020 brought deal activity to a near standstill as companies prioritised safeguarding employees’ health and Read more…
Download PDF Introduction: Infrastructure as an Asset Class Infrastructure investing involves allocating capital towards large-scale physical and organisational structures that provide essential services, such as transportation, energy, water, and telecommunications. These assets are critical for the functioning and growth of economies, often offering long-term, stable returns for investors. Infrastructure investments Read more…
Download PDF USA While the week started with a selloff on Monday, giving back gains posted during the previous session’s post-jobs-report surge, the S&P 500, Dow Jones Industrial Average, and S&P MidCap 400 Index still reached record highs this week. The Dow Jones Industrial Average and S&P 500 gained 1% Read more…
Download PDF Introduction The aim of this article is to provide a comprehensive overview of equity swaps, focusing on their structure, mechanics and use cases for investors. Equity swaps evolved in the late 1980s and early 1990s, as a part of the broader development of over the counter (OTC) derivative Read more…
Download PDF Introduction The aerospace industry has long been a highly competitive and technologically advanced sector, with the production of commercial aircraft serving as its centrepiece. For decades, this market has been effectively controlled by two major companies: Airbus [EPA: AIR], based in Europe, and Boeing [NYSE: BA], headquartered in Read more…