Market Recap 28/11/2021

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…

Market Recap 21/11/2021

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…

The Econometrics of Tech Stocks

Download PDF Introduction We are now over a year and a half into the Covid pandemic. Disruptive as this exogenous shock has been, markets have quickly recovered, and proceeded to reach one new record after the other. More interestingly, several information technology stocks have stood the challenge without a bruise. Read more…

Market Recap 14/11/2021

Download PDF USA The US stock rally came to an end this week when the S&P 500 registered its first decline after nine sessions, ending the longest positive since 2017. The US index fell 0.31% this week, after some shocking news. Dow Jones and Nasdaq composite followed suit, with losses Read more…

Market Recap 07/11/2021

Download PDF USA The US stock market ended this week with all indices but the S&P 500 Value Index reaching all-time highs with the latter just barely closing under its all-time high. The main event last week was definitely the publication of the Federal Reserve’s decision to not raise interest Read more…

Systemic Risk

Download PDF Introduction This article will analyze the significance of the systemic risk in the current economic environment, delving into the Evergrande crisis and its impact on the Chinese economy and investigating the potential loopholes from the private credit sector. Finally, we will present some econometric methods applied towards systemic Read more…

Ex-Dividend Arbitrage

Download PDF Introduction This article will ostensibly be a distillation and discussion of the paper ‘Ex-Dividend Arbitrage in Option Markets’ by Hao, Kalay and Mayhew. [1] They find that a significant fraction of American call option holders do not behave in line with rational exercise policy regarding dividends, leaving money Read more…

Market Recap 31/10/2021

Download PDF USA U.S. equities rallied to new highs as the busiest week in earnings season came to an end, marking October as the best-performing month of 2021. The S&P 500 breached the 4,600 mark and closed 1.33% up on the week, at 4,605.38. The tech-heavy Nasdaq composite also reached Read more…