Download PDF Introduction Commodity-exporting currencies are structurally linked to the prices of their primary exports through the terms-of-trade channel. While this relationship holds in the long run, short-term dislocations frequently emerge due to monetary policy shifts, capital flows, and risk sentiment. This article develops a systematic cross-asset mean-reversion strategy that Read more…
Download PDF Introduction Japan’s general election on 8 February 2026 was the clearest political signal yet that the country is moving into a different macro regime from the one that defined the past two decades. Japan PM Takaichi achieved a historic victory as the LDP secured a two-thirds super majority Read more…
Download PDF Introduction Equity Capital Markets have suffered a prominent “drought” of IPOs in the past 3 years. In fact, IPO volume fell from 2,436 in 2021 to around 1,415 in 2022 and 1,298 in 2023, with global IPO proceeds falling by 42% in the same time frame. This slowdown, Read more…
Download PDF Introduction The benefits of competition are supported by a strong economic literature and are clear to most market participants. In competitive markets, firms are forced to maintain low prices in order to gain market share or avoid being undercut by rivals, ultimately benefiting consumers. Additionally, rivalry among firms Read more…
Download PDF Introduction 2025 concluded with the resurgence of megadeals (transactions valued over $5bn), as encapsulated by headlines such as Netflix’s [NASDAQ: NFLX] $82.7bn bid for Warner Bros. Discovery [NASDAQ: WBD]. In contrast to Q4 2024, total deal value has increased by 127.6%, with M&A activity rising by 19.1% for Read more…
Download PDF Introduction In our monetary system, money markets play a crucial role in providing liquidity for financial players and are the fundamental basis of financial markets for all systemically important players. While other markets of our financial system are both well explored and documented, the money markets have stayed Read more…
Download PDF Introduction One of the most discussed topics in Q1 of 2026 is probably the current commodity “Supercycle”. Having become an extremely covered theme thanks to the stellar performance of precious metals (namely Gold and Silver), there seems to be a consensus among investment professionals on the fact that Read more…
Download PDF USA Markets cooled down this week, due to important factors starting from AI concerns. Amazon, Google, Meta and Microsoft collectively expect to spend around $650 billion to compete in the race, however investors start to be worried about this ambitious capex spending. We see a fall in major Read more…
Download PDF Introduction “Everything is connected; everything is a balance.” – The Giver In the 1850s, as technologies improved, the world underwent a drastic shift from a set of largely independent economies to a single, intertwined global economy. Ease of transport (through greater integration and innovation, such as steamships and Read more…
Download PDF Abstract This technical report details the architecture and implementation of the BSIC Quant Library, a Python-based infrastructure designed to centralize and optimize financial data retrieval for the BSIC members. The system is designed to facilitate access to financial data from the association’s members by providing a robust pipeline Read more…
Download PDF Abstract This project develops a coherent framework for modelling the implied volatility surface by combining stochastic volatility, local volatility, and smile-consistent interpolation techniques. Starting from market conventions, risk-neutral valuation, and vanilla option pricing, the work introduces the volatility surface as a mapping from strikes and maturities to implied Read more…
Download PDF Abstract This research presents a Time Series Momentum (TSMOM) trading strategy implemented on highly liquid exchange-traded funds (SPY and GLD), enhanced with a novel macro-instrumented regime switching framework for state-dependent de-risking. Our approach addresses the well-documented momentum crash problem—sudden reversals that can wipe out months of accumulated gains Read more…
Download PDF USA It’s been a short week on Wall Street because of Thanksgiving Day, but enough to allow stock markets to close the recent “misstep” and return to near all-time highs. If just a few days ago hopes for a December rate cut seemed to be crumbling under the Read more…
Download PDF Introduction Business Development Companies (BDCs) have recently experienced a boom, representing a major expansion in the US middle-market lending and private credit markets. In fact, BDCs now manage approximately $478bn and provide about a quarter of all “direct lending” to US companies. Their growth has bridged the gap Read more…
Download PDF Introduction Venezuela is going through one of the worst political and economic crises in the world. The currency is crashing again, inflation is returning to triple digits, and the president is thought to be the head of a narco-trafficking cartel. Moreover, the United States is increasing sanctions and Read more…