Corn and wheat: a stable (cointegrating) affair

Given the recent market volatility, and the prolonged commodity rout, we decided to investigate whether some long-term relationships are still present on the market. And, of course, we looked for potential trades arising from the situation. We analysed different commodities on different time-frames (from 5-minute to weekly data). While noise Read more…

Trouble Flows Downstream: Energy Transfer Equity Follows Consolidation Trend

Williiams (WMB); market cap (as of 02/10/15): $27.63bn Energy Transfer Equity (ETE); market cap (as of 02/10/15): $21.96bn   Introduction On Monday September 28, Energy Transfer Equity (ETE) announced to acquire its rival The Williams Company Inc. (WMB) for c. $37.7bn (assuming $4.6bn of Williams’ debt). This transaction happened in Read more…

Teva Pharmaceuticals Heading to the Emerging Markets

Teva Pharmaceuticals Industries Ltd. (TEVA); market cap (as of 02/10/2015): $51.05bn.   Introduction Following a wave of consolidation in the healthcare industry, Teva Pharmaceuticals Industries Ltd. and Representaciones e Investigaciones Médicas, S.A. de C.V. (Rimsa) announced on October 1 that they have entered into a definitive agreement under which Teva Read more…

The Volkswagen Scandal: A New Beginning for the Automotive Industry?

Volkswagen AG; market cap (as of 25/09/15): €55.0bn   Small Software, Big Turmoil Volkswagen, the second largest carmaker in the world, headquartered in Wolfsburg, Germany, is in the middle of one of the largest automotive scandals to date. The company was discovered cheating on the emission tests by installing software Read more…

The new behemoth in the semiconductor industry: Avago to buy Broadcom

Avago Technologies Limited (AVGO): market cap (as of 25/09/2015): $34.2bn. Broadcom Corp. (BRCM): market cap (as of 25/09/2015): $31.4bn. Introduction Following a wave of consolidation in the semiconductor industry, which culminated last March with the NPX/Freescale $11.8bn deal, on May 27, Avago Technologies Limited and Broadcom Corporation announced that they have entered Read more…

“Wanna Play Big: Scale Up!” – Starwood Waypoint Residential Trust to Acquire Colony American Homes

Starwood Waypoint Residential Trust; market cap (as of 26/09/2015): $953.73m Colony American Homes; market cap (as of 26/09/2015): N.A. Introduction On September 21 Starwood Waypoint Residential Trust (NYSE: SWAY) and Colony American Homes (CAH), two of the largest U.S. single-family home landlords, agreed on the merger in an all-stock deal Read more…

WTI, S&P 500 and EURUSD: a difficult relationship

After weeks of firm bull sentiment, major equity markets (especially European ones) have experienced a fast correction that, although small compared to the incredible year-to-date performance, has started to disturb the overall view of investors. Such a movement has coincided with a rebound on the EUR/USD, which postponed the breakout Read more…