United States This week, similarly to the past month, the main focus of the US market was the tax reform which would strongly impact US small-caps equities and the US dollar. In particular, on Thursday, the US House of Representatives voted to pass its version of the bill. Although Read more…
Investors are demanding an increasing amount of leveraged loans, with a lower capital cushions and little covenant protections. Furthermore, they are demanding a lower spread over the floating reference rate. In this article, we will give an overview of the situation, the fundamental reasons behind this trend and the potential Read more…
Quick recap In the last newsletter we published an article providing the theoretical foundations of Dispersion Trading (in case you missed it: https://bsic.it/lost-dispersion-trading/). As promised to our readers, here is a follow up with some real market applications. However, you still need to wait for the chapter III in the Read more…
United States While markets hit record highs on Wednesday (Nov. 7), investors concerned about the prospects for tax cuts took the chance to get out of the equity market, pushing the markets down in the last 2 trading sessions of the week. This was probably the reaction to the news Read more…
The market microstructure of electronic markets is a topic that is usually left outside the “standard” set of courses within an academic degree, both at the B.Sc. and at the M.Sc. level. However, some knowledge of market microstructure can be particularly handy for any students willing to build a career Read more…
Since the development of the Black-Scholes formula for determination of the price of options, the “implied volatility” has been an ordinary tern in markets participants’ vocabulary. Given the non-linear payoff of options, they can be used to implement trading strategies which are not directional (that is, they are not based Read more…
United States Last Thursday President Trump nominated Jerome H. Powell to chair the Federal Reserve, bypassing Janet L. Yellen for a second term but turning to a replacement who is expected to stay the course on monetary policy if the economy continues its steady growth. As a result, investors do Read more…
Introduction to the Yield Curve and its Evolution 15 August 1971, the day the Bretton Wood System was dissolved, will remain an important moment in economic history, representing a major shift in our international monetary system, a change in approach to perceived market risk and a departure from the gold Read more…
One more (last) round of QE After 2008, the European Union has faced some serious problems and particularly troublesome was the financial sector after well-known streak of bankruptcies that plagued the whole world. Given the heterogeneity of European nations, it was difficult to find a unique solution for all of Read more…
United States Following the “perfect week” of the S&P500, where the index set every day a new positive record, this week the market was characterized by oscillating returns due to the quarterly earnings release. Indeed, even if the majority of reports indicated strong earnings, especially in some of the largest Read more…
According to the Financial Times, Credit Derivatives market was a $10 trillion market in the beginning of 2017. While this figure has taken a bump from a heyday before the Great Financial Crisis a decade ago, it makes for an essential cornerstone of the finance world. This article will proceed Read more…
Impax Laboratories, Inc. (IPXL:NASDAQ) – market cap as of 27/10/2017: $1.40bn Introduction On October 17, 2017, Amneal Pharmaceuticals and Impax Laboratories announced that they will merge in an all-stock transaction. Amneal will hold c. 75% of the combined entity, whereas Impax shareholders will own the remaining stake (c. 25%). These Read more…
Company overview Grubhub (NYSE: GRUB) is an online food delivery service that connects diners with nearby restaurants. Orders are placed online and are delivered to the user’s doorstep. Restaurants may carry out the delivery themselves or pay Grubhub to do so. The company has over 9.18 million active diners and Read more…
First Solar Inc. is the world’s largest thin-film PV solar module manufacturer and one of the world’s largest PV solar module manufacturers. Our attention toward this company is due to it’s amazing stock performance during this year (+48%) and the fact that it will probably be the main beneficiary of Read more…
United States The labour report released on Friday showed, along with encouraging data on US wage growth, some inconsistencies which are likely to be the outcome of distortionary effects caused by the Hurricane Irma. More specifically, the latest non-farm payroll figure is negative (-33,000). This is the first time that Read more…