BSIC First Market Making Trading Competition

Have you always considered yourself a young version of Gordon Gekko? Have you always thought you could make billions if you were given the chance to trade securities? It’s time you prove it! Find all the relevant details on trading competition page. […]

BSIC Special Report: Twitter IPO

Months of rumours have finally come to an end: Twitter is joining the ranks of listed internet companies with an IPO in Q4 2013. The market is hyped up and ready to go, but is this offering destined for ridicule as Facebook’s was? Correctly valuing Twitter is of paramount importance if we want to shed […]

European Risk Adjustment Trade (Stoxx)

The European debt crisis seems to have taken the way of recovery and the rates for European government bonds reflect a positive economic outlook in the Euro area. The Euro Stoxx 50 Index includes Europe’s leading Blue-chips companies. Actually, these companies are  considered as safe as AAA European countries (Germany, Finland, Netherlands) and represent an […]

USD-INR Carry Trade

The main idea of the trade is to buy IND and sell USD, implementing what in jargon is called a carry trade. In the chart above we can see the 3-month trend of this risky pair, which has actually been under the spotlight in the past couple of months since Raghuram Rajan was appointed Governor […]

BSIC’S SPECIAL: Janet Yellen

Who is Janet Yellen, the woman everyone seems to be talking about these days? Why have we been hearing this name so often and what implications will it have on us? Well, we will presumably be hearing of Janet Yellen for quite a long time: last Wednesday President Obama nominated Mrs. Yellen as the next […]

Trade Idea: Short Greek Equity Index – Long Ftse 100

The first point is that the Greek equity index level is very stretched: RSI is now over 70 and price levels already reached the upper Bollinger band. Although this would already be enough to short the index, a closer look at historical data corroborates this feeling. The true driver seems to be speculation; indeed historical […]

Time to open Pandora’s box?

Rumors about the plans to expand Itunes Radio to more English-speaking countries other than US by early 2014 led to a turbulent week for Pandora, the music streaming industry leader. With about 72 million active users, Pandora has been the first music streaming website to go public. This year Pandora has outperformed the market, with […]

Finmeccanica: a way out of the stalemate?

Finmeccanica Market Cap (as of 11/10/13): €3.23bn Fondo Strategico Italiano (FSI) Market Cap: N/A   Italian defence and industrial conglomerate Finmeccanica has agreed to sell its 55% stake in Ansaldo Energia, a maker of thermoelectric turbines, to Fondo Strategico Italiano (FSI), an arm of state-owned lender Cassa Depositi e Prestiti (CDP), for a total cash […]

Autogrill S.p.A.’s Spin-off

AGL Market Cap: 1.6 bn WDF Market Cap: 2.0 bn On the 1st of October 2013, Autogrill S.p.A. completed the spin-off of Travel Retail & Duty Free (TR&DF) that is now controlled by World Duty Free S.p.A. WDF started to trade at a price of €7.13 with AGL trading at €6.05, with a total value […]

KKR to acquire Acco and Crosby for US$1bn

KKR & Co. LP (Assets Under Management: US$83.5bn as of June 30th 2013) Melrose PLC (Market Cap: US$5.95bn as of October 10th 2013) On October 10th KKR & Co. L.P. announced the acquisition of The Crosby Group and Acco Material Handling Solutions from Melrose Industries PLC in a deal valued at US$1.01bn. Melrose, a London-based […]

BSIC Fall 2013 Recruitment

Find all the relevant details in the JOIN US section.     […]

Oi and Portugal Telecom to merge amidst shifting telecoms landscape

Oi Market Cap (as of 04/10/13): $2.78bn Portugal Telecom Market Cap (as of 04/10/13): $4.02bn On Wednesday, October 2nd, Oi of Brazil and Portugal Telecom (PT henceforth) agreed to merge after three years of alliance, forming a telecommunication heavyweight which will bring together 100mln customers across the Portuguese-speaking world. The deal takes place in an […]

Sotheby’s to adopt shareholder-right plan following takeover threat

Sotheby’s Market Cap (as of 4/10/13): $ 3.46bn Daniel Loeb, CEO of the hedge fund Third Point LLC, announced on the 2nd of October that he has upped his stake in the arts auctioneering firm Sotheby’s to 9.3%, making him the firm’s biggest shareholder. Mr Loeb now holds 6.8m shares worth $350m. In response to […]

‘Safe stocks’ up, again?

Since the crisis hit, interest rates have been kept artificially to the lowest level the world has ever seen. This launched what was called the ‘hunt for yield’. As many investors ran for high-yield junk bonds, risk-averse investors who were uncomfortable with that level of risk turned to quality stocks, i.e. high dividend paying stocks. […]

Trade idea: Pay 10y Euro, Receive 10y UK

The main rationale for the trade is a possible positive surprise of the European economy by the end of the year. The periphery has performed well and the recent resolution of the Berlusconi’s issue has reduced the political risk of the area. Moreover, the economic performances outline the beginning of a recovery path: Italy PMI […]