Download PDF Introduction European innovation has finally gotten to American shores. Over recent years, synthetic risk transfers (SRTs) have become an increasingly relevant tool within banking, prompting both industry excitement and regulatory concern. In a nutshell, SRTs are financial transactions that banks use to transfer the credit risk of certain Read more…
Download PDF Introduction 2022 has been a difficult year for investment banks. Despite the relative strength of their trading divisions, a collapse in M&A value has been weighing down on revenues. Something that has been leading to outright losses, however, is Leveraged Finance. This lesser-known part of the financing groups Read more…
Download PDF Introduction Private credit denotes any debt or extended to privately held companies. It comes in many different forms, but often involves non-bank firms making loans to private companies or purchasing their debt on the secondary market in a variety of ways. To be more specific, Private credit, also Read more…
Download as PDF Introduction Relative valuation is a widely spread approach among practitioners and is, broadly speaking, a double-check methodology, to back-test more sophisticated valuation techniques. Relative valuation relies on the main assumption that stock markets are on average efficient and fundamentals are correctly priced in. The aim of this Read more…
Introduction – NPL definition The term NPL stands for “nonperforming loans” and it is about loans whose collection by banks has become uncertain, not only for the total repayment but also for the interest portion. Non-performing loans are generally the result of an adverse economic situation, but often also of Read more…
In a world of excessive liquidity, where open market operations by central banks are ineffective, unconventional and unheard-of monetary policies need sometimes to be applied. In this article we will briefly discuss of the overnight interbank lending market in Europe (and changes in how its respective index is calculated) and Read more…
Greek Banking Sector The Greek banking system is built around four large systemic banks, whose summary statistics you can see in the table below. All four banks have undergone a significant restructuring process, whereby both the asset value and the market capitalization went down a lot. In addition, a number Read more…
The Blackstone Group L.P. (NYSE: BX) – market cap as of 24/09/2018: $47.23bn Introduction On September 13, 2018, Nordea and DNB announced that they had entered into an agreement to sell 60% of the Baltic bank Luminor to the private equity giant Blackstone in a transaction that is valued at Read more…
Natixis S.A. (EPA: KN) – market cap as of 14/09/2018: €18.43bn Introduction On September 12th, 2018 Natixis S.A. announced an agreement for the proposed sale of its retail banking activities to its parent BPCE. The transaction includes the transfer of the firm’s consumer financing, factoring, leasing, sureties and guarantees, and Read more…
Introduction Markets all around the world have been characterized by high volatility and unsatisfying returns in recent weeks, primarily because of the dramatic drop in oil prices and the alarming data on China’s growth, which has failed to meet analysts’ expectations for the fourth quarter of 2015 by about one Read more…
The recent turmoil enduring since the beginning of the year affected in particular energy and financial sectors. Italian banks were hit by a panic sell off that shrank, and in the worst cases halved, their capitalization even though fundamental factors are strong for most of them and no rationality can Read more…
The European banking sector has been facing significant changes in the post crisis era. Regulatory headwinds, a myriad of litigation charges and the lack of a credible strategy at many institutions have seen the sector fall out of favor with equity investors. Though, admittedly, these challenges might not have been Read more…
Visa Inc.; Market Cap: $190.62bn (as of 06/11/2015) Visa Europe Ltd.; Market Cap: N/A (as of 06/11/2015) Introduction On November 2nd, Visa Inc. (NYSE: V), the payment processing giant which holds an approximate 39% market share of the credit card marketplace, announced the acquisition of Visa Europe Ltd., its Read more…
Empirical evidence suggests that correlation between asset classes tends to spike during a period of market crisis, because investors panic and sell indiscriminately. This phenomenon is usually short-lived and correlation returns to a normal level as the market stabilizes. During the 2008 financial crisis, this effect was amplified by a Read more…
This week, we are proud to publish an in-deep analysis on the Italian Popolari banks situation, one of the most discussed topics since the announcement of the AQR done by the ECB. Thanks to the recent rumors of an Italian decree, which changes the voting powers’ structure of the above Read more…