Charging up: OVO Energy Limited to acquire SSE’s British retail business in £500m deal

OVO Energy Limited – privately held SSE PLC (LON: SSE) – market cap as of 20/09/2019: £12.62bn Introduction On September 13th, the energy suppliers SSE Energy Services and OVO Energy Limited reached an agreement whereby SSE agreed to sell its British retail business to OVO at an enterprise value of £500, consisting of £400m in cash […]

New Problems for Old People: An Overview of Pension Markets

Pension funds are key investors in the market, with around $27.6tn in assets as of 2018. In this article, we will present a brief overview of pension schemes and funds around the world, with a focus on the challenges that pension funds will have to face in the near future. In the first part, different […]

The peak of Private Equity?

Introduction The private equity industry has always had a special place in the financial world. Its competitive and dynamic nature has captivated the most talented businessmen, but what really allowed it to grow steadily over the past 40 years was the outstanding performance it granted to the investors willing to navigate the illiquid market. We […]

An Update for all the Black Gold Miners

Even those of us who don’t check commodity prices were probably keen to see the spike in oil prices at markets open on Monday, September 16th. While the drone attacks on the facilities of Saudi Aramco and their consequences are still present in the news, in this article we want to take a more detailed […]

Market Recap 29/09/2019

US On Monday, the US registered stronger than expected manufacturing and composite PMIs while a weak service PMI. In the same day, the FED injected about 50bn $ in the financial system through REPOs following last week spike in short-term borrowing costs. The FED continued its intervention in the REPO market on Tuesday, and on […]

Dreaming of Yield: Blackstone solidifies its real estate portfolio through $4.7bn Dream Global REIT acquisition

Blackstone Group Inc. (NYSE:BX) – market cap as of 16/09/2019: $63.96bn Dream Global Real Estate Investment Trust (TSE:DRG.UN) – market cap as of 16/09/2019: $3.22bn Intro On September 15, Dream Global Real Estate Investment Trust announced acquisition agreements with affiliates of real estate funds manager, Blackstone, in an all-cash $4.7bn deal. Blackstone will pay $16.79 […]

Market Recap 22/09/2019

US Fannie Mae and Freddie Mac are once again back in the spotlight, with American treasury secretary Steven Mnuchin proposing to reform and recapitalized these government enterprises. The Fed has cut rates by 25 bps to a range of 1.75% – 2%, in line with market expectations while resisting the Trump Administration’s calls for further […]

“Tiering” to avoid tearing balance sheets: Understanding the ECB new policy

In a world of excessive liquidity, where open market operations by central banks are ineffective, unconventional and unheard-of monetary policies need sometimes to be applied. In this article we will briefly discuss of the overnight interbank lending market in Europe (and changes in how its respective index is calculated) and in particular discuss of “tiering”, […]

Summer Deals Recap

As summer comes to an end, BSIC presents its top picks of the season’s most interesting deals. We saw several key themes throughout the summer, notably, a wave of megadeals, with 13 deals over €5bn announced this summer compared with only 2 in the same season last year. Worldwide deal activity was bolstered by an […]

A step up: LSE enters financial information market through $27bn Refinitiv acquisition

The London Stock Exchange Group (LON: LSE) – market cap as of 01/08/2019: £30.05bn Introduction On August 1st 2019, the London Stock Exchange Group (LSE) announced it had come to terms with Refinitiv shareholders to acquire the business in an all-share transaction for a total enterprise value of around $27bn. LSEs purchase of the data […]

Liquidity Squeeze: What is the Repo-Scarcity Premium?

How expensive can it be to borrow USD cash for one night collateralizing fully with the US Treasuries? Given current rates, perhaps somewhat above 2% would be reasonable. What about 10%? This is how much some of the participants in the USD Repo market had to pay to provide themselves with liquidity on the 16th […]

Streaming wars: A new hope for ViacomCBS in $12bn deal

Viacom Inc. (NYSE: VIA) – market cap as of 15/09/2019: $10.61bn CBS Corporation (NYSE: CBS) – market cap as of 15/09/2019: $16.48bn Introduction On August 13, 2019, CBS and Viacom agreed to recombine in an all-stock merger, which will create a multiplatform premium content company set to become one of the leading content producers and providers with […]