2019 has indeed been a busy year in terms of M&A with many large deals and IPOs announced. A general trend observable throughout many of the industries can be one of consolidation: high costs and new tech-based entrants to the market is squeezing larger players, many of which have chosen Read more…
PayPal Holdings Inc. [PYPL: NASDAQ] – Market Cap as of 30/11/2019 USD 126.82bn Honey Science Corporation – Privately Held Introduction On November 20th, 2019 PayPal announced the $4bn acquisition of deal-finding company Honey, which is expected to complete in Q1 2020. The deal will provide PayPal with an additional source Read more…
US The Thanksgiving holiday was accompanied by record highs on Wall Street: a beat in US GDP growth and – this never gets old – positive comments from President Donald’s Trump about a closing on the final stages with a partial trade deal with China lead to a bullish sentiment. Read more…
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…