Introduction: Many of us have been swept away with the rapidly increasing adoption and interference of technology in our lives. Well, corporate finance is no different. The significant developments in AI technology is expected to augment existing business models of advisory firms and, in some cases, form new business models Read more…
We gave a brief introduction to put writing strategies already earlier this semester. We since thought about possible modifications of such strategies and their effects on return characteristics and return predictability. The positive returns of put writing strategies can be motivated from risk premia, as we show in the first Read more…
Real estate is traditionally associated with large capital expenditures and not a high amount of liquidity. Hence, the sector is usually reserved for long-term investments by high net worth individuals. Even more so, commercial use buildings are out of reach for most private individual’s pockets, making developers and other large Read more…
Fujifilm Holdings Corporation. [TYO: 4901.T] – Market Cap as of 23/09/2019: USD 18.93bn (JPY 2.056tn) Xerox Holding Corporation. [NYSE: XRX] – Market Cap as of 23/09/2019: USD 8.44bn Intro On Tuesday, November 5th 2019, Fujifilm announced it will acquire Xerox’s 25% stake in the joint venture Fuji Xerox. The $2.3bn Read more…
Introduction This is the second and last part on BSIC’s report about the oil industry. In this article, we set out to discuss the most relevant determinants of oil demand in the short to medium term. We analyze the effects that a predicted economic slowdown would have on the consumption Read more…
Tencent [TCEHY: US] – market cap as of 23/11/2019: USD 406.28bn The following article aims to analyze the current situation of the $400bn Chinese tech giant Tencent, comment on the challenges it is facing, and suggest future growth paths. Overview of the Company Tencent is a Chinese multinational conglomerate holding, Read more…
Introduction In this article, we will try to provide an insight on green bonds, a quickly growing new star of impact investing trends in the world. A total of US$580bn in green bonds were sold up to the year 2018, and at least another US$170bn more are expected to be Read more…
In this article, we introduce distressed debt securities. Then, we investigate what are the problems of valuing a company in financial distress and how we can address those problems. Finally, we present some investment strategies that can be applied when a company is financially distressed. Overview Distressed companies are companies Read more…
US Last week the S&P500 was slightly down by 0.19% and closed the week at 3110,29 points. The index remained above the 3100 threshold while the yield on the US 10 year treasury was down 6 basis points at 1.774. The US market was once again driven by the phase-one Read more…
With this series of articles, BSIC will present the supply and demand dynamics of the oil industry which are most relevant to create well-grounded predictions of the future. This week’s article will focus on the supply side trends including supply disruption resulted from geopolitical issues, pipeline construction projects around the Read more…
US The Dow Jones Industrial Average crossed the 28k mark with a close at 28,004.89 on Friday, recording a weekly gain of 1.2%. The S&P 500 closed at 3,120.46 up 0.9% w-o-w. These numbers outline a 6th consecutive week of gains for the index – for the first time in Read more…
Following the article from last week, we now investigate the Inflation Risk Premium. We start by introducing the role inflation plays in monetary policy decisions and what are the mechanics of the Inflation Risk Premium, which is one of the most important drivers of market-based inflation rate. Then we analyse Read more…
At the beginning of a new election term, Argentina finds itself in another economic crisis. After Alberto Fernández, a centre-left opposition leader, defeated president Mauricio Macri in election primary this August, the Argentine peso lost 33% of its value in three days, hitting a new record low. But this was Read more…
Fiat Chrysler Automobiles NV (BIT:FCA) – market cap as of 10/31/2019: €30.28bn Peugeot SA (EPA:UG) – market cap as of 10/31/2019: €26.22bn Introduction On the 31st of October 2019, France’s Groupe PSA and Fiat Chrysler Automobiles entered into an agreement to merge into the world’s 4th largest original equipment manufacturer Read more…
Introduction – NPL definition The term NPL stands for “nonperforming loans” and it is about loans whose collection by banks has become uncertain, not only for the total repayment but also for the interest portion. Non-performing loans are generally the result of an adverse economic situation, but often also of Read more…