Download PDF On the 7th of February 2022 two ultra-low-cost carriers, Spirit and Frontier Airlines, announced a definitive merger valued at $2.9bn that will create the most competitive budget airline, rivaling giants like American, Delta, United and Southwest. This deal takes place in a time where airlines have to contend Read more…
Download PDF One topic has dominated the financial news recently: tech-stocks falling out of favor with investors. The pandemic-era dominance of tech has come to an end, with US value stocks outperforming growth by around 10% year to date. Most tech-stocks have collapsed over the last 3 months, with the Read more…
Download PDF Over the last few decades, the overnight and intraday returns of the American market exhibit strange behavior, considering that the highest share of returns accrue in the after-hours trading and not during the day, as most would have expected. Indeed, a good visualization of the phenomenon is shown Read more…
Download PDF Introduction By now, everyone, even with only a slight interest in the financial world, has heard or read of the terms Quantitative Easing (QE) and Quantitative Tightening (QT). If on one side the first one, combined with fiscal stimulus, was more than necessary for the world economy to Read more…
Download PDF Introduction When the very first game machine was presented at the New York World’s Fair in 1940, very few people would have betted on gaming becoming the $180bn monster industry it is today. Expected to reach a value of $314bn by 2027, registering a CAGR of 9% over Read more…
Download PDF Welcome back from the winter break! We hope you had a wonderful time with your beloved ones and please, do not worry if you missed the most significant recent deals, BSIC will introduce them to you! TMT Microsoft’s acquisition of video game maker Activision Blizzard Deal Value: $68.7bn| Read more…
Download PDF USA This week, the selloff in US equities, especially growth stocks continued. The most decisive event this week was the publication of inflation numbers this Thursday, which swung all indices but the S&P 500 Value Index into red territory after having started out the week with slight gains. Read more…
Download PDF You might have heard of Decentralized Finance, or DeFi for short, in the news lately. It is a part of the broad blockchain ecosystem that has taken the world by storm in the last couple of years. But what is DeFi, and what opportunities does it present? This Read more…
Download PDF Introduction Pairs Trading is a well known and one of the earliest statistical arbitrage trading methods. This article will present two rather simple pairs trading strategies, namely the Distance and Cointegration Method and discuss their levels of profitability over time and in the present day. Intuitively, pairs trading Read more…
Download PDF Introduction On Thursday November 18th, the fast food restaurant chain serving salads, Sweetgreen (SG) debuted on the New York Stock Exchange. The IPO was priced at an initial offer price of $28 per share. On the first day of trading, Sweetgreen’s opened with a stock price of $52 Read more…
Download PDF USA The US main index dropped sharply on Friday, after the Thanksgiving session, following a new Covid variant thread found in South Africa. “This variant has a large number of mutations, some of which are concerning,” the WHO said on Friday. The new variant is still under examination, Read more…
Download PDF Introduction On November 18th, CVC Capital Partners announced that it reached an agreement with Unilever to acquire its tea business for €4.5bn on a cash-free, debt-free basis. The deal is expected to close in the second half of 2022. The agreement concludes a two-year process of reviewing and Read more…
Download PDF Introduction Currently, nuclear energy provides about 10% of the world’s electricity, producing it in 440 active power reactors as of 2021. The United States has almost 100 nuclear reactors, even though it generates most of its electricity from fossil fuels and hydroelectric power. Unlike in the US, nuclear Read more…
Download PDF USA A mixed performance in equities this week, as the inflation debate continues to bemuse investors. Indications of continued strong economic growth, such as the 1.7% monthly increase in retail sales, prompted the superior performance of consumer discretionary firms’ shares. The sector, which rose by 3.81% this week, Read more…
Download PDF Introduction In this article, we are going to summarize “Myopic Loss Aversion and the Equity Premium Puzzle”, published by Shlomo Benartzi and Richard Thaler in 1995. The purpose of revisiting this paper is introducing our readers to the domain of behavioral economics. Behavioural economics is the field of Read more…