Download PDF Introduction An ATM equity long straddle position is delta neutral. If systematic risk is the only factor predicting expected returns, a delta neutral strategy should have an expected return equal to the risk-free rate. In this article we will review academic literature suggesting that not only is this Read more…
Download PDF Introduction Financial instruments related to carbon emissions have been described in the past two years as a “one-way” bet for hedge funds and other financial players, who think the value of these contracts will rise in the future. The rationale behind these products is that negative externalities like Read more…
Download PDF Introduction On September 16, 2021, Prenetics Group Limited, a world leader in the field of genomics and diagnostics, announced that it has reached a definitive merger agreement with Artisan Acquisition Corp., a special purpose acquisition company privately founded by famed entrepreneur Adrian Cheng and listed on the Nasdaq Read more…
Download PDF Introduction On September 21st, Universal Music Group (UMG), the world’s biggest music label, went public via an IPO on Amsterdam’s Euronext exchange. Universal’s shares surged at the start of trading on Tuesday, as owner Vivendi VIV.PA spun off the record label in the biggest European listing of the Read more…
Download PDF USA A rough week for the American stock market ended with solid gains Friday. After rising Treasury yields were a headwind for much of the week, Friday’s sharp drop in the 10-year yield help spurs equities. Small caps led the way, with the Russell 2000 up 1.7%. For Read more…
Download PDF Introduction Green Finance and ESG investing are the answers of public capital markets to the climate crisis. Oftentimes they are reduced to buzzwords whose actual effectiveness is subject of fierce discussion. However, despite some criticism, these instruments have been incredibly successful in recent times and the appetite of Read more…
Download PDF Introduction Renewable energy sources are finally gaining traction, pushed by the international community rushing to slow down climate change before consequences become unrepairable. But the shift towards clean energy has much deeper and structural roots from geopolitics to economics, that explain why certain countries have invested with more Read more…
Download PDF Introduction In this article, we will present the pricing of Arithmetic Asian Options using Monte Carlo simulations. Additionally, we will introduce variance reduction techniques and the advantages of using Asian options in the oil market. We will show the functioning of the Monte Carlo models and analyze the Read more…
Download PDF Introduction By typing “hybrid” in the Google search bar, the first results that come out are hybrid cars and their cutting-edge technology that is revolutionizing the automotive sector. If, on the other hand, the same question is made to a bond trader, the first thought that springs to Read more…
Download PDF Introduction On Monday September 13th, one of the biggest deals in the fast-growing digital privacy space has been closed: Kape Technologies Plc’s acquisition of ExpressVPN for $936m in cash and shares. Aiming to protect consumers’ digital contents, this acquisition will broaden Kape’s customer network from almost 3m to Read more…
Download PDF USA US indexes ended a busy week higher after recovering from a Monday crash caused by the contagion risks of Evergrande’s default. On Monday, the S&P 500 fell the most since May, though it pared some losses during the last hours of trading. Another important event was the Read more…
Download PDF Introduction Vivendi, the French media conglomerate, has reached an agreement to buy activist investor Amber Capital’s 17.9% stake in Lagardère, the French media and retail group. The takeover of Lagardère, owner of the Paris Match magazine and Europe 1 radio, would see the creation of one of Europe’s Read more…
Download PDF Introduction Following the dramatic shift of retail shopping to online channels in the wake of the pandemic, online marketplaces such as Amazon presented enormous opportunities for entrepreneurs to grow an online business. E-commerce roll-up companies or aggregators seek to purchase such successful Amazon third-party sellers, and then use Read more…
Download PDF PayPal (NASDAQ:PYPL) Market Cap as of 17th September 2021 – $324.7bn Paidy – privately owned Introduction On September 8th PayPal Holdings Inc. announced its intention to acquire Japanese Buy-Now-Pay-Later (BNPL) company Paidy Inc. for $2.7bn in a largely cash deal. This deal, expected to close in the fourth Read more…
Download PDF USA The main U.S. indexes fell this week after data on consumer sentiment was below expectations, raising doubts about the pace that the economic recovery will take and the inflation outlook. The moves in stocks show investors grappling with mixed economic data in the U.S. and China, the Read more…