Month: March 2019

Market Recap 30/03/2018

US S&P closed the week at 2,834, up 0.7% during the day and marks its best performing quarter in the last 10 years being up 14% from December. On Friday, DJIA closed 0.8% higher at 25,929. The Nasdaq Composite climbed 0.8% to close at 7,729. 10-year Treasuries ended the week at around 2.406%. US stock […]

1000%: Liquidity Crunch in the Turkish Swap Market. What future for the Lira?

History of Turkey’s crisis Over the course of its history, Turkey has been continuously striving towards beneficial economic relations with Europe. Turkey became an associate member of the European Economic Community in 1963, and later joined the Customs Union in 1995. As a result of a period of very high growth and sound managing of […]

Reasoning why the DAX is the lame duck

As one may have noticed, over the not so recent past the German benchmark index DAX has trailed its major European country equity indices. An investor who invested four years ago in the DAX would have lost about 4% while the French CAC 40 returned 21%. With Germany as so often being referred to as […]

Why do M&A fail?

Introduction When talking about M&A one can assume two different perspectives: that of the investment bank and that of the acquirer. The bank deems a deal successful right after it is concluded, when it gets paid the fees. The reality is quite different for the company, as it might take several years to understand whether […]

From Boring to Booming in the Back Office: Fidelity Information Services acquires Worldpay in a $43bn deal

Worldpay Inc. [WP: NYSE] – Market Cap as of 29/03/2019 $34.66bn Fidelity National Information Services Inc. [FIS: NYSE] – Market Cap as of 29/03/2019 $35.93bn Introduction On Monday, the 18th of March 2019 Worldpay and FIS announced that they have entered into a definitive merger agreement, with FIS acquiring Worldpay through a combination of cash and shares that values the latter at […]

Insurance for Insurers: Centene Corporation’s $17.3bn acquisition of WellCare Health Plans

Centene Corporation (NYSE: CNC) – market cap as of 30/03/2019: $21.940bn WellCare Health Plans Inc. (NYSE: WCG) – market cap as of 30/03/2019: $13.486bn Introduction The American health insurer Centene has agreed to acquire competitor WellCare Health Plans Inc. for $17.3bn, creating one of America’s largest managed care groups, providing government-sponsored healthcare plans for 22m […]

Market Recap 10/03/2019

US The week just ended has led losses to US equity indices: the S&P 500 fell 2.16% to 2,743, thus failing to break the resistance line at 2,800-2,815. Similarly, the NASDAQ lost 2.46% and the Dow Jones decreased by 1.80%. This week has not brought major news for what concerns the US-China trade talks after […]

The Dollar Index: Critical Analysis

Introduction The US Dollar Index was created by the Federal Reserve in 1973. The index was initially intended to provide an external bilateral trade weighted average of the US Dollar as it freely floated against major global currencies. Consequently, the US Dollar Index [ticker: U.S.DX® ] (USDX hereon), is a geometrically weighted average of six […]

Venezuela’s Lone Survivor Under Crossfire

Introduction Venezuela is a state in chaos; this is a systemic issue that arises from many long years of economic mismanagement from the Chavismo administration which has ruled for two decades. These issues are now coming to light given the dismal state of affairs in Venezuela, the most obvious indicator of which is the hyperinflation. […]

Growing healthy: Roche to acquire Spark therapeutics in $4.3bn deal

Roche Holding AG (SIX: ROG.VZ) – market cap as of 03/09/2019: $233.86bn Spark Therapeutics, Inc. (NASDAQ: ONCE) – market cap as of 03/09/2019: $4.32bn Introduction On February 25, 2019, the Swiss multinational healthcare company, Roche, announced that it entered into an agreement to buy Spark Therapeutics in a transaction that is valued at approximately $4.3 […]

The bigger they are… the harder they fall – General Electric sells its BioPharma division to Danaher for $21.4 bn

General Electric Company [GE: NYSE] – Market Cap as of 03/03/2019 $89.40bn Danaher Corporation [DHR: NYSE] – Market Cap as of 03/03/2019 $91.18bn Introduction On Monday 25th February 2019 General Electric (GE) announced the sale of its BioPharma business to Danaher for a total consideration of $21.4 billion, including $21 billion in cash. GE, which had previously come under investor pressure in relation […]

Liberty Global is finally free! Restructuring completed after a $6.3bn sale of Swiss Unit

Liberty Global plc [LBTYA: NASDAQ] – Market cap as of March 10th $18.36bn Sunrise Communications Group AG [SRCG: SW] – Market cap as of March 10th CHF3.41bn ($3.41bn) Introduction On February 27, 2019, Liberty Global, the biggest international TV and broadband internet company, agreed to the sale of its Swiss business – UPC Switzerland – […]

Investing in the ETF Era

Introduction Exchange Traded Funds (ETFs) have constantly been on the rise ever since the 2008 financial crisis. Year over year, increasing amounts of assets are placed in ETFs causing their market share (especially in the United States) to expand to over 25% of total open-end funds in 2018 according to EY. This leads us to […]

Market Recap 03/03/2019

US This week saw modest gains on most American indexes, with the s&p increasing by 0.39% and Nasdaq by 0.9%. The Dow remained fairly stable with a loss of -0.02%. Overall the markets seem to be pricing in a relaxed scenario for tariffs as the deadline for trade talks between the Us and China appears […]

THE INVISIBLE GEARS – Repurchase Agreement and the (Credit) Repo Market – Part 2

Introduction After examining the main features of the repo market as well as some peculiar characteristics of the European credit repo market (http://www.bsic.it/the-invisible-gears-repo-agreement-and-the-credit-repo-market-part-1/) we would like to walk you through what happens when a repo fails (and why this might happen) and the recent reform of the CSDR, i.e. the Central Securities Depository Regulation. This […]

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