Introduction The low-interest rate environment which has characterised the markets since the breakout of the financial crisis left fixed-income investors with one way to continue to benefit from high yields: emerging markets. In addition to this, China started a credit expansion in order to keep the levels of GDP growth Read more…
Introduction In January 2018, M&A activity surpassed investors’ expectations. According to a report by law firm Baker McKenzie, global mergers and acquisitions are expected to hit an 18-year record, reaching $3.2 trillion in 2018. To the same extent, cross-border M&A is expected to reach new time highs. In the December Read more…
Dr Pepper Snapple Group (NYSE:DPS) – market cap as of 17/02/2018: $28.78bn Introduction On January 29, 2018, Keurig Green Mountain, the coffee group owned by JAB Holding, announced the acquisition of soda maker Dr Pepper Snapple Group. Under the terms of the reverse takeover, Keurig will pay $103.75 per share Read more…
Introduction On the 8th of February 2018, the shareholders of the Italian high-speed train operator Italo-NTV (Nuovo Trasporto Viaggiatori) (“The Company”) have accepted the offer of Global Infrastructure Partners (“GIP”) for the disposal of 100% of their stake, for an equity value of around €1.94bn. As a result, the plan Read more…
In this article we would like to assess the current year from a macroeconomic as well as from a market perspective. 2017 – The Year Almost Behind Us So far, 2017 has been characterized by: Synchronized global growth reaching 3,7% Equities (+17,3%) outperformed bond (+2,6%) Sector-by-sector speaking healthcare (+19,3%) and Read more…
United States US stocks closed mostly higher on the week ended December 1, 2017. The Dow Jones Industrial Average recorded its best weekly gain for the year, gaining 673.60 points (+2.9%) to close at 24,231.59. The S&P 500 Index gained 39.80 points (+1.5%) to close at 2,642.22, while the Nasdaq Read more…
Trading the Dispersion: chapter III Here is the final part of our series about the strategy known as dispersion trading. The article will first focus on an additional dispersion indicator we will employ to time the entry and exit points of our strategy. Then, we will derive the optimal number Read more…
Meredith Corporation (NYSE:MDP) – market cap as of 02/12/2017: $2.96bn Time Inc. (NYSE:TIME.K) – market cap as of 02/12/2017: $1.85bn Introduction On the November 26, 2017, Meredith Corporation entered into a binding agreement to acquire Time Inc., Meredith’s former rival and one the biggest incumbents in the media sector, Read more…
Banco Bilbao Vizcaya Argentaria S.A. (BBVA:MCE) – market cap as of 1/12/2017: €47.17bn Introduction On November 29, 2017, it was announced that BBVA had sold to the American fund Cerberus the bulk of its real estate business in Spain. Through this operation, the Spanish bank will reduce by 70% its Read more…
Sun Art Retail Group Ltd (HKG: 6808) – Market Cap as of 02/12/17: $74.70bn Alibaba Group (NYSE: BABA) – Market Cap as of 02/12/17: $447.20bn Introduction On November 19, 2017, the Chinese online giant Alibaba acquired a 36.16% stake in Sun Art, an important player in the Chinese offline retail Read more…
Introduction The introduction of the common currency started a landmark European integration process. However, the sovereign debt crisis showed all the limits of an incomplete European integration, limited to monetary policy only, with a single central bank and 19 independent debt markets. The sovereign debt crisis was exacerbated by a Read more…
United States Stocks were higher in the holiday-shortened week amid expectations that a strong holiday season would boost top-line growth for retailers, ending a two-week stretch of lower markets. The S&P 500 gained 0.93% on the week and finished at a record high of 2,602.42. The Dow Jones Industrial Average Read more…
Introduction In this article, we look at the yield curve of US govies, and in particular we will try to understand its flattening upon rate hikes. This puzzling phenomenon is not something new under the horizon. The same effect was observed under the Greenspan led of the FED. Between June Read more…
Introduction When we look at the biggest companies by market cap, many of them are Tech firms, capable of leveraging innovative technologies to create new types of businesses. Most times they offer business models that are so different from the companies we are used to, that we struggle in finding Read more…
Marvell Technology Group Ltd. (NASDAQ:MRVL) – market cap as of 24/11/2017: $11.80bn Cavium Inc. (NASDAQ:CAVM) – market cap as of 24/11/2017: $6.14bn Introduction On November 20, 2017, Marvell Technology Group has agreed to buy rival chipmaker Cavium in a cash and stock deal which values the target company at Read more…