Month: April 2018

Market Recap 29/04/2018

US This week, US equities have shown an increase in volatility: on Tuesday 24th, following the breakthrough of the psychological barrier of 3% in the yield of 10y US treasuries, the most important US indexes S&P 500/DOW JONES 30 and Nasdaq 100 have lost about 2% each. On the same day, the VIX, the index […]

US vs China: Who is Going to Ship more?

Introduction Trade wars and tit-for-tat tariff threats between the two largest national economies should not be expected in a world embracing trade integration and common regulation through institutions such as the World Trade Organisation (WTO). However, this is exactly what we are currently observing in a US-led, politically motivated upheaval against Chinese trade practices, that […]

Veni, Vidi, Vici: The Blackstone Way To Trade CDS

The CDS Market Until 2008, credit default swap (CDS) markets have grown exponentially since their emergence in the late 1990s but shrunk considerably to an estimated outstanding notional value of $9.6 trillion in 2017. Despite deliberate efforts by the International Swaps and Derivatives Association (ISDA) and market participants on both buy and sell sides, the […]

The Entertainment Earthquake: Evolve or Succumb

Walt Disney Co (NYSE:DIS) – market cap as of 27/04/18: $151.2bn Twenty-First Century Fox Inc (NASDAQ:FOXA) – market cap as of 27/04/18: $67.7bn AT&T Inc (NYSE:T) – market cap as of 27/04/18: $215.8bn Time Warner Inc (NYSE:TWX) – market cap as of 27/04/18: $75.8bn Introduction M&A activity is not a steady phenomenon. Rather, it tends […]

Time to enter the game: UK’s Playtech acquires Italy’s Snaitech

Playtech PLC (LSE:PTEC) – market cap as of 27/04/2018: £2.50bn Snaitech SpA (BIT:SNA) – market cap as of 27/04/2018: €409.8m Introduction On April 12, the world’s largest online gaming software supplier announced it had agreed to acquire a 70.6% stake in Snaitech, the Italian gaming and betting market leader. Subject to completion of this €846m […]

Electrification: Total S.A acquires Direct Energie

Total S.A. (EPA:FP) – market cap as of 27/04/2018: €138.0bn Direct Energie S.A. (EPA:DIREN) – market cap as of 27/04/2018: €1.90bn Introduction On April 18, 2018, French oil major Total S.A. announced the acquisition of 74.33% of Direct Energie’s share capital in a transaction valued at approximately €1.4bn. At a price of €42 per share, […]

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Private Equity 101: From Venture Capital to LBOs

Below you can find the presentation that Bocconi Students Investment Club delivered to Bocconi community on the 23rd of April 2018.   Download as PDF   […]

Novartis-AveXis: an $8.7bn gene repair

Novartis AG (SIX: NOVN) – market cap as of 20/04/2018: CHF204.12bn AveXis Inc (NASDAQ: AVXS) – market cap as of 20/04/2018: $7.62bn Introduction On April 9, Novartis submitted an offer to acquire all the shares of the American gene therapy group AveXis. The Swiss drugmaker offered an 88% premium adding up to an $8.7bn deal. […]

When theft leads to a deal: Monex to buy crypto-exchange Coincheck after a massive security breach

Monex Group Inc (TYO: 8698) – market cap as of 20/04/2018: ¥149.15bn Introduction On April 16, the online brokerage giant Monex officially acquired the cryptocurrency exchange Coincheck for ¥3.6bn (~$33.55m). The move is questioned by the general public due to the recent security breach in Coincheck and the theft of $534m worth of the NEM […]

The Battle of Dragons – Recent Acquisitions and Investments in China amid the Rivalry between Alibaba and Tencent

Alibaba Group Holding Ltd. (NYSE:BABA) – market cap as of 20/04/2018: $462.0bn Tencent Holdings Ltd. (HKG:0700) – market cap as of 20/04/2018: HK$3,780bn Introduction The first two weeks of April 2018 have seen a string of aggressive acquisitions and the announcement of financing rounds by companies backed by the Chinese technology giants Alibaba and Tencent. […]

Big Brother is Watching You! How Can Alternative Data Help Traders to Beat the Market

Introduction Information has always been one of the main sources of alpha on the market. Centuries ago just having first-hand information about the outcome of a war could very well constitute an important edge over others, the famous speculation of Nathan Rothschild on the Battle of Waterloo comes to mind. As time passed and technology […]

Trading the Carry

  In this article, we will develop an investment strategy on currency, specifically on the USD/CHF pair. We will: Introduce the currency carry trade (for those familiar with it, you are welcomed to skip this brief explanation) Review the developments in the Switzerland economy, and move to the current environment Develop the investment idea Introduction […]

Market Recap 22/04/18

US This week, US equities ended on a low note as the market kept a close watch on rising UST yields and Apple was a drag on the tech sector. The benchmark 10-year yield rose to its highest level in four years. The three major equity indices still managed to finish higher for the week, […]

TIPS, Gold and their divergence. Is it possible to make money?

Introduction on TIPS and Gold as inflation hedge Generally, an assets is considered t o be an “inflation hedge” if either its purchasing power is maintained over the long run or its nominal returns closely track realized inflation over shorter horizons. Gold and TIPS fall into this category and are thus correlated given that they […]

Dislocations Between Historical and Implied Volatility as an Indicators of Volatility Trades

Differences between historical realized volatility and option implied volatility has for long been known as a potential indicator for volatility mispricing. To our knowledge, the first well-known academic study on the topic was conducted by Goyal and Saretto in 2009 and published as the paper ‘Cross-section of Option Returns and Volatility’. We will first start […]

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