Printing goodbyes – End to the Fuji Xerox complicated joint venture

Fujifilm Holdings Corporation. [TYO: 4901.T] – Market Cap as of 23/09/2019: USD 18.93bn (JPY 2.056tn) Xerox Holding Corporation. [NYSE: XRX] – Market Cap as of 23/09/2019: USD 8.44bn Intro On Tuesday, November 5th 2019, Fujifilm announced it will acquire Xerox’s 25% stake in the joint venture Fuji Xerox. The $2.3bn deal marks the end of […]

Everything you need to know about oil – Part 2

Introduction This is the second and last part on BSIC’s report about the oil industry. In this article, we set out to discuss the most relevant determinants of oil demand in the short to medium term. We analyze the effects that a predicted economic slowdown would have on the consumption of petroleum. Moreover, we discuss […]

Next steps: Tencent’s options to keep growing

Tencent [TCEHY: US] – market cap as of 23/11/2019: USD 406.28bn The following article aims to analyze the current situation of the $400bn Chinese tech giant Tencent, comment on the challenges it is facing, and suggest future growth paths. Overview of the Company Tencent is a Chinese multinational conglomerate holding, with headquarters in Shenzhen, which […]

Green Bonds Boom

Introduction In this article, we will try to provide an insight on green bonds, a quickly growing new star of impact investing trends in the world. A total of US$580bn in green bonds were sold up to the year 2018, and at least another US$170bn more are expected to be sold this year, according to […]

Are distressed companies really worthless?

In this article, we introduce distressed debt securities. Then, we investigate what are the problems of valuing a company in financial distress and how we can address those problems. Finally, we present some investment strategies that can be applied when a company is financially distressed. Overview Distressed companies are companies that are unable to meet, […]

Market Recap 24/11/2019

US Last week the S&P500 was slightly down by 0.19% and closed the week at 3110,29 points. The index remained above the 3100 threshold while the yield on the US 10 year treasury was down 6 basis points at 1.774. The US market was once again driven by the phase-one trade deal talks but this […]

Everything you need to know about oil – Part 1

With this series of articles, BSIC will present the supply and demand dynamics of the oil industry which are most relevant to create well-grounded predictions of the future. This week’s article will focus on the supply side trends including supply disruption resulted from geopolitical issues, pipeline construction projects around the world, and countries’ exploratory initiatives […]

Market Recap 17/11/2019

US The Dow Jones Industrial Average crossed the 28k mark with a close at 28,004.89 on Friday, recording a weekly gain of 1.2%. The S&P 500 closed at 3,120.46 up 0.9% w-o-w. These numbers outline a 6th consecutive week of gains for the index – for the first time in 2 years. Additionally, it’s interesting […]

Inflation Derivatives and the Inflation Risk Premium – Part 2

Following the article from last week, we now investigate the Inflation Risk Premium. We start by introducing the role inflation plays in monetary policy decisions and what are the mechanics of the Inflation Risk Premium, which is one of the most important drivers of market-based inflation rate. Then we analyse how the changes in the […]

Argentina on its knees… again

At the beginning of a new election term, Argentina finds itself in another economic crisis. After Alberto Fernández, a centre-left opposition leader, defeated president Mauricio Macri in election primary this August, the Argentine peso lost 33% of its value in three days, hitting a new record low. But this was only a catalyst exacerbating the […]

Road to Consolidation: FCA and Peugeot merge to become 4th largest auto producer

Fiat Chrysler Automobiles NV (BIT:FCA) – market cap as of 10/31/2019: €30.28bn Peugeot SA (EPA:UG) – market cap as of 10/31/2019: €26.22bn Introduction On the 31st of October 2019, France’s Groupe PSA and Fiat Chrysler Automobiles entered into an agreement to merge into the world’s 4th largest original equipment manufacturer with a capacity to produce […]

Italian NPL market: a goldmine for Credit funds?

Introduction – NPL definition The term NPL stands for “nonperforming loans” and it is about loans whose collection by banks has become uncertain, not only for the total repayment but also for the interest portion. Non-performing loans are generally the result of an adverse economic situation, but often also of an inefficient credit assessment by […]

Virgin Galactic: space travels find new ways to launch on the stock market

Virgin Galactic Holdings Inc. [NYSE: SPCE] – Market Cap as of 08/11/2019 $2.126bn Introduction On October 28th, 2019, Virgin Galactic started trading on the NYSE and became the first publicly traded commercial spaceflight company. It did so by merging with Social Capital Hedosophia, a special purpose acquisition company already listed on the NYSE. The SPAC, […]

Market Recap 10/11/2019

US The rally in the U.S. markets continued this week, sustained by the optimistic outlook on the resolution of the US-China trade disputes. The S&P 500 and the Nasdaq Composite were both up 0.85% w-o-w, closing at 3,093.08 and 8,457.31, respectively. The Dow Jones Industrial Average recorded a weekly gain of 1.22%, ending at 27,681.24. […]

Fitness for the Future: Google acquires wearable device company Fitbit in $2.1bn deal

Alphabet Inc. [GOOGL:NASDAQ] – Market Cap as of 09/11/2019 USD 903.46bn Fitbit Inc. [FIT:NYSE] – Market Cap as of 09/11/2019 USD 1.83bn Introduction On the 28th of October 2019 initial reports suggested the interest of the tech giant Alphabet, the parent company behind Google, in acquiring Fitbit, a wearable device company. Finally, on the 1st […]

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