Market Recap 28/04/2019

US During the trading week S&P500 and Nasdaq have increased their market value while the Dow Jones 30 has been quite steady. The S&P500 has closed the week at 2940, increasing by 1%, while the Nasdaq, in the same period, moved from 7980 to 8148, rising by 2.1%. The Dow Jones has been steady around […]

The Rising Sun Shadow over Europe: is the fear of European Japanification real

Intro Recently, fears for an “European Japanification” have regained popularity due to raising concerns about the growth’s slowdown and similar underlying long-term dynamics of the two economies. In this article we aim to walk through Japan’s “Lost Decades”, and the following Bank of Japan’s response to figure out monetary tools, beyond central bank traditional repertoire, […]

Indian Election 2019 – World’s Biggest Parliamentary Exercise And What’s In It For You

India, the world’s largest democracy with 900 million eligible voters, is currently engaged in one of the most complex voting exercises around the modern democratic world. The sheer logistics of the largest election on earth is, naturally complex; the election is being held in 7 phases, spanning from 11th April to 19th May with the […]

The German company strikes back: Merck wins takeover battle for Versum

Merck KAaG [ETR:MRK] – market cap as of 28/04/2019: €12.29bn ($13.77bn) Versum Materials Inc. [NYSE:VSM] – market cap as of 28/04/2019: $5.68bn (pre-announcement undisturbed value: $3.28bn) Intro On April 12th the German Chem-tech company Merck KAaG signed the definite agreement to buy the American special materials company Versum in an all-cash transaction. The price tag […]

The PE energy game: Carlyle Group purchases a stake in Spanish oil giant Cepsa

The Carlyle Group (NASDAQ:CG) – market cap as of 08/04/2019: USD 6.34bn Introduction On April 8, 2019, the US PE giant Carlyle announced its decision to acquire up to 40% of the capital of the Spanish multinational Cepsa from the sovereign fund of the United Arab Emirates Mubadala for up to $4.8 bn. The transaction […]

The IPO Bonanza (Part 1): IPO Fever Grips World Markets in a Binding Clench

Introduction 2018 was a somehow controversial year in IPO terms, with Q1, Q2 and Q3 building a strong momentum for companies to go public, and Q4 eroding the optimism recorded in the preceding timeframe. Unfortunately, 2019 has opened with the same negative outlook, with scheduled IPOs all throughout the world being put on hold in […]

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 […]

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