Download PDF US The main driver of US market returns this week was the U.S. core personal consumption expenditures price index that surged to 0.6% MoM in January far higher than the 0.4% expected and double the previous months. The year-on-year increase was revised higher to 4.7% compared to the Read more…
Download PDF Introduction While interest rates were still stuck at historic lows in Europe, news broke in June 2022 that Credit Suisse was about to issue a contingent convertible bond at a yield level of close to 10%. The peculiarity with this type of security is that it is converted Read more…
Download PDF Introduction CVS Health has agreed to buy Oak Street Health in a $10.6bn deal, to further integrate primary care into the healthcare conglomerate, through the acquisition of the Medicare-focused company. According to CVS management statements, the deal is expected to close by the end of this year and will be Read more…
Download PDF Introduction In the last two months, we have seen a flurry of bids come in for the most prized assets in the world of football, namely Tottenham Hotspur FC and the infamous Manchester United. The astronomical valuations that analysts had speculated for some of these football clubs have Read more…
Download PDF Introduction Recently, the governments of Argentina and Brazil announced that they are considering the launch of a common currency and are aiming for stronger monetary and economic integration in South America. Furthermore, some of the biggest events in Europe in the last decade included the Euro Crisis and the Read more…
Download PDF Introduction Throughout history, gold has played a central role in the economies of the world. With its uses ranging from a store of value and currency to an indicator of wealth, it still stirs up heated debate. With the global gold mining industry, worth just shy of $205bn Read more…
Download PDF US Equities started off the week strong, with most major indexes surging, in anticipation of Tuesday’s CPI report, where inflation slowed ever so slightly to 6.4% from 6.5% in December, less than market forecasts of 6.2%. The inflation reading was the first to be calculated by the Bureau Read more…
Download PDF Introduction In this article, we discuss an equity Pairs Trading strategy using the S&P 500 index components. Pairs Trading is a statistical arbitrage strategy that involves simultaneously taking long and short positions in two financial assets, expecting their spread to converge to the mean. However, the process of Read more…
Download PDF Introduction Welcome to another deal recap! We hope you had fantastic winter and Christmas holidays and started the year well. As we are closing the winter season, there have been many newsworthy deals to reflect on in the past three months. BSIC has gathered them for you! Healthcare Read more…
Download PDF Introduction Once seen as too unpredictable, consumer brand leveraged buyouts have grown in popularity over the past two decades. Fashion cycles and shifts in consumer preferences increase the risk of such buyouts, as cash flow generation is, in general, less certain. Yet deals such as Permira’s acquisition of Read more…
Download PDF In the past few years, cryptocurrencies have made the headlines on many different occasions and many think that they are here to stay, for better or worse. Regardless of their social impact, we believe that they have introduced interesting contrasts to traditional finance in their market microstructures. In Read more…
Download PDF Introduction Commercial sports, from football to ice hockey, have captivated fans across the globe and it is no surprise that this has turned the heads of investors. The industry has seen ever-growing revenues coming from broadcasting rights, merchandising and sponsorship deals. Consequently, sports franchises have become an attractive Read more…
Download PDF Introduction Grindr [GRND:NYSE], an online dating app targeted towards the LGBTQ+ community, went public on November 18, 2022 after completing a merger with Tiga Acquisition Corp., a Special Purpose Acquisition Company (SPAC), at an initial post-transaction enterprise value of $2.1bn. The leading social network for the LGBTQ+ community Read more…
Download PDF Introduction A yield curve depicts the returns of fixed income securities against their term, or time to maturity. In this article, we explain the role that the discount function and forward rates have in the creation of a yield curve and compare different methodologies to fit the yield Read more…
Download PDF US The week started off with a substantial drop in the DOW Jones Index during the last hour of trading on Monday amid worries around commentary by Fed officials and reports of protests spreading in China. These worries were the main drivers of Tuesday’s markets as well with Read more…