Download PDF Introduction In 2025 the global economy has been characterized by new governments, continuation of conflicts, escalations of new conflicts, global asset volatility, and unmeasurable uncertainty – how did we get to this point? More importantly, where do we go from here? The main catalyst of recent commotion was Read more…
Download PDF Introduction In this article, we introduce the main market-traded credit derivatives, with a particular focus on Credit Default Swaps (CDS). After explaining how they work, we delve into the terminology and pricing mechanisms, covering single-name CDS, indices such as iTraxx and CDX, and CDS options. Next, we explore Read more…
Download PDF Introduction For the first time in decades, the private equity industry is experiencing a genuine contraction. According to Bain & Co., total buyout assets under management fell by 2% in the year to June 2024, settling at $4.7tn as exit pipelines narrowed and distributions failed to meet investor Read more…
Download PDF Introduction Momentum has long proven to be a reliable and empirically supported factor in equity strategies across developed markets (DM). Seminal work by Jegadeesh and Titman (1993) found that stocks with strong past returns over a 3–12 month period tend to continue outperforming in the following months. Later, Read more…
Download PDF Introduction The U.S. housing finance system revolves heavily around government-sponsored enterprises (GSEs), and historically implicit and now explicit government guarantees through Fannie Mae [OTCMKTS: FNMA] and Freddie Mac [OTCMKTS: FMCC]. These entities have historically stabilized and facilitated mortgage lending by providing liquidity and guaranteeing mortgage-backed securities (MBS). However, Read more…
Download PDF USA Major US equity indices staged a dramatic rebound this week, reversing much of the prior week’s steep losses triggered by tariff fears. The S&P 500 rose 7.82%, the Dow Jones gained 7.59%, and the Nasdaq outperformed with a 9.18% surge. Volatility remained elevated throughout the week, with Read more…
Download PDF Introduction In this article, we explore how optimising entry and exit points can improve the performance of mean reversion strategies, specifically within a purchasing power parity (PPP) framework. We address this optimisation challenge, by exploring two complementary approaches: a theoretical model-based approach and a numerical method. Due to Read more…
Download PDF Introduction Last year, we discussed how surging demand for data storage and processing – driven by streaming, e-commerce, and AI—propelled record investments in server infrastructure worldwide. There existed a large FOMO surrounding Data Centres and AI. Currently, with increasing investor pressure amid large Capex requirements and slow materialisation Read more…
Download PDF USA The major US equity indices ended the week with sharp declines on Friday, suffering their most significant losses since the 2020 COVID-19 crisis, as a consequence of the new US tariffs announced on Wednesday, which exacerbated investor fears, leading to a worldwide sell-off. The S&P 500 tumbled Read more…
Download PDF Introduction Short-rate martingale models were among the first approaches to the modelling of interest rate term structures, providing a flexible framework for pricing fixed-income securities and interest rate derivatives. These models describe the evolution of the continuous short rate as a stochastic process and are widely used in Read more…
Download PDF Intro The race to become the leading Electric Vehicle (EV) producer has just shifted into the next gear with the introduction of newer and faster charging systems. The race is now not only about range but also about which company can provide the fastest way to charge their Read more…
Download PDF Introduction After two years of limited activity due to uncertainty surrounding interest rate policies, large valuation gaps, and geopolitical tensions, the leveraged finance market saw a major recovery in 2024, marking its busiest year since 2021. The combined issuance volume of leveraged loans and high-yield bonds in the Read more…
Download PDF Introduction In today’s fast-evolving mergers and acquisitions landscape, a hidden battleground is emerging—one where minority shareholders can challenge the terms of a merger and potentially unlock significant hidden value. This arena is defined by appraisal rights, a legal mechanism that empowers investors who oppose a deal to bypass Read more…
Download PDF Introduction Trading strategies revolve around several sources of edge, ranging from discretionary macro ideas, fundamental based stock picking to more sophisticated ones such as factors exposure or high-frequency algorithms. One area which the current literature pays little attention to is sentiment trading, which can be established in several Read more…
Download PDF Introduction Generative AI has gone mainstream at a blistering pace worldwide. OpenAI’s ChatGPT, launched in late 2022, reached 100m users in just two months and was valued at around $29bn by January 2023. Now, on the verge of finalizing a new funding round, its valuation is expected to Read more…