Reaching for the Sky: Cellnex acquires Arqiva’s Telecom Towers for £2bn

Cellnex Telecom SA [CLNX: BME] – Mkt cap as of 19/10/19: €12.24bn Arqiva – not listed Introduction On the 8th of October 2019, Arqiva announced the sale of its Telecoms business (TowerCo) to Cellnex for £2bn, which Arqiva will use to reduce its leverage, currently standing at a debt-to-equity ratio of 1.9. The operation will […]

Central Bank Tools of Intervention: Reverse Repos versus QE

In mid-September, there has been a liquidity crisis in the money market of secured overnight borrowing. We have analyzed this in an article published one month ago, headed “Liquidity Squeeze: What is the Repo-Scarcity Premium?”. Since then, the Federal Reserve proceeded to inject more than 230 billion over the period from the end of September […]

Relationships between commodities and interest rates

The use of Copper and Gold Can commodities help us predict future interest rate movements? In this article, we will analyze the relationship between the spot prices of copper and gold and the ratio between them to predict future interest rates. Copper is used in the majority of industries such as semiconductors and wiring. Gold […]

Paying for Premiums: Tokio Marine purchases Pure Group in $3.1bn deal

Tokio Marine Holdings Inc [TKOMY: TYO] – Market Cap as of 18/10/2019: $36.95bn (¥4.05tn) Introduction Tokio Marine, Japan’s largest non-life insurance company, has agreed to acquire Pure Group: a US-based insurance group majority-owned by private equity players KKR and Stone Point. The deal, valuing Pure Group at $3.1bn, is expected to be funded by a […]

Feet to the Fire: Mapping the current state of shareholder activism

Introduction  Historically, large institutional investors pursued purely financial strategies and kept a low profile in governance. This may no longer be the case. In a manner vaguely reminiscent of the corporate raiders of the 1980s, a new generation of activist shareholders is on the rise. The number of companies targeted by shareholder activists hit an […]

Market Recap 20/10/2019

US U.S. markets were slightly higher last week as Q3 earnings season spurred some optimism, but global growth concerns limited it. The S&P 500 was up 0.4% w-o-w, closing at 2,986 points, while the DJIA fell 1%, ending at 26,770. The Nasdaq Composite decreased 67 points (0.8%) to 8,089. On Tuesday, JP Morgan Chase & […]