Month: April 2019

Market Recap 14/04/2019

US This week, the two major economic data that we see important at the US are: the monthly CPI which was recorded as 0,1% ,slightly below the 0,2% expectations, and the monthly PPI which was recorded as 0,6% , beating the 0,6% expectations. Next week retail sales and Philadelphia FED’s Manufacturing Index will be released […]

Dark Pools: Fifty Shades of Trade

“Make all the trades through the dark pools so it masks what we’re doing. That way we’ll preserve our head start, which will not be a long one.” This is how Bobby Axelrod instructs his traders to get rid of his natural gas positions in the latest episode of the famous TV series, Billions. Dark […]

Greexotics – A first step in the land of exotic derivatives greeks – Part 1

How does the Delta of a lookback option behave? What is Cross-Gamma? Is the Vega of a digital option ever negative? And furthermore, how do these exotic greeks (“greexotics) evolve as time passes and implied volatility changes? In this series of articles, we would like to give the reader a brief but comprehensive answer to […]

Carel Industries S.p.A. – IPO report

Carel Industries S.p.A. [BIT: CRL] – Market Cap as of 08/04/2019:  €1.05bn Introduction On Monday 11th of June 2018, Carel Industries S.p.A., a global player in the dehumidification and refrigeration sector, started trading on the MTA of Borsa Italiana. The initial price was €7.2 per share, but strong demand quickly drove the price up to […]

Got Game? NVIDIA’s acquisition of Mellanox Technologies for $6.9Bn

Mellanox Technologies Ltd [MLNX: NASDAQ] – Market Cap as of 03/04/2019 $6.46bn NVIDIA Corporation [NVDA: NASDAQ] – Market Cap as of 03/04/2019 $114.25bn Introduction On Monday 11 March 2019 NVIDIA announced an all-cash acquisition of Mellanox Technologies at $125 per share, implying a total EV of $6.9bn. NVIDIA, whose share price had previously come under pressure due to a weakening demand for its […]

Lyft-ing up or Falling Fast?: Lyft Becomes the First Rideshare Company to IPO

Lyft inc. [LYFT: NASDAQ] – Market Cap as of 5/4/2019 $21.28bn Introduction  On March 29, Lyft – a leading US ride-hailing company – went public on the Nasdaq. Its IPO price settled at the top end of the pricing range, with shares at $72 a piece valuing the company at nearly $24bn. The offering ranked […]

Market Recap 07/04/2019

US With the beginning of the earnings season this week FactSet reported that in the first quarter analyst lowered earnings-per-share estimates by 7.2%, the largest decline since 2016 Q1. One of their main fears is that the record rise in wages which has outpaced the PCE for the previous quarters, may lead to lower margins […]

Advanced ETF Mechanics and Its Flaws

In this article we will skip the introduction of the very fundamental characteristics of ETFs and focus on the more advanced mechanics, here meaning the different replication methods accompanied by a glance at current developments in the respective section. With an understanding of these more advanced mechanics, we will then seek to stress two major […]

How to Trade Football Clubs: A Case Study on Juventus

In this article we analyze how to set up trading strategies on listed football clubs exploiting the peculiar behaviour of returns and implied volatility in correspondence to UEFA Champions League matches. In particular, this article is structured in four parts. In the first part, we briefly introduce the link between revenues of clubs and the […]

Running away from oil: Saudi Aramco to acquire SABIC for $69.1bn

Saudi Basic Industries Corp [SABIC:AB] – Market Cap as of 05/04/2019 $381.6bn Introduction On March 27th 2019, the Saudi Arabian Oil Company (Saudi Aramco), signed a share purchase agreement to acquire a 70% majority stake in Saudi Basic Industries Corporation (SABIC) from the Public Investment Fund of Saudi Arabia (PIF) in a private transaction worth […]

Kick-off: Levi Strauss inaugurates wave of IPOs raising $623m

Levi Strauss & Co. [NYSE: LEVI] – Market Cap as of 30/03/2019:  $9.21bn Introduction On 21 March 2019, jeans maker Levi Strauss & Co. made a comeback to the stock market in style after more than three decades since the company was taken private. The public offering raised $623m through the sale of 36.7m shares […]

Alternative asset managers try to get stock market love: Brookfield acquires 62% of Oaktree for $4.7bn

Brookfield Asset Management Inc. (NYSE: BAM) – market cap as of 01/04/2019: USD 46.83bn Oaktree Capital Management (NYSE: OAK) – market cap as of 01/04/2019: USD7.82bn Intro On March 13th, the Canadian alternative asset manager titan Brookfield Asset Management and the California-based alternative asset manager Oaktree Capital Group announced an agreement whereby Brookfield committed to acquire […]