Democratic Party Primaries: A Markets Perspective

In this article, we will analyze the upcoming Democratic Party Primaries for the 2020 US Presidential elections from a markets point of view. We will start by introducing the Democratic Party primary system for electing the Democratic Party’s Nominee who will face President Trump on the 2020 elections, after introducing the primary concept we will […]

Zero-fees brokerage revolution: Schwab and Ameritrade tie up to prepare for the fight

Introduction – Disruption in the industry The 2010s were a decade of incredible innovation in the financial industry, putting an enormous amount of pressure on the incumbent players and forcing them to make drastic decisions to survive. The securities brokerage industry was hit particularly high, as modern and affordable challengers like Robinhood are eating up […]

LVMH acquires Tiffany&Co. for $16.2Bn

LVMH Moet Hennessy Louis Vuitton SE(MC:FP) – market cap: 202.855B EUR Tiffany & Co. (NYSE) – market cap: 16.018 B USD Intro The 25th of November LVMH announced an all-cash deal to acquire Tiffany & Co for $16.6bn, including $400m of net debt. Hence, the control of the upmarket American jewellery shifts to Bernard Arnault, […]

Will PE strategies score? A dive into Sport and Entertainment Investing

Intro There has been a growing interest among private equity firms in the past 5 to 6 years towards sports. During these past recent years, the sports industry has become a major economic sector, exceeding €600bn in value and growing at around 7% annually. The sports’ market is divided into two broad sectors depending on […]

Market Recap 08/12/2019

US US bill supporting pro-democratic movements in Hong Kong has caused a negative reaction of China, however, China avoided any direct measures related to trade. Sanctions are going to be introduced on US human-rights organizations and US Navy ships port visits would be halted. The tension between two nations increase: China is going to publish […]

The changing face of inflation: does it undermine the Post-Bretton Woods paradigm

An overview of inflation interpretations In the following article, we are going to examine the current framework of monetary policy – inflation targeting – with a focus on the evolution of the inflation process Post-Bretton Woods and its effects on the current regime of price stability. In the post-war era, the behavior of inflation has […]

2019 Deal Recap

2019 has indeed been a busy year in terms of M&A with many large deals and IPOs announced. A general trend observable throughout many of the industries can be one of consolidation: high costs and new tech-based entrants to the market is squeezing larger players, many of which have chosen M&A to acquire new technology, […]

PayPal planning its Honey-moon

PayPal Holdings Inc. [PYPL: NASDAQ] – Market Cap as of 30/11/2019 USD 126.82bn Honey Science Corporation – Privately Held Introduction On November 20th, 2019 PayPal announced the $4bn acquisition of deal-finding company Honey, which is expected to complete in Q1 2020. The deal will provide PayPal with an additional source of insight on customer behavior […]

Market Recap 01/12/2019

US The Thanksgiving holiday was accompanied by record highs on Wall Street: a beat in US GDP growth and – this never gets old – positive comments from President Donald’s Trump about a closing on the final stages with a partial trade deal with China lead to a bullish sentiment. The US economy grew at […]

AI IN CORPORATE FİNANCE

Introduction: Many of us have been swept away with the rapidly increasing adoption and interference of technology in our lives. Well, corporate finance is no different. The significant developments in AI technology is expected to augment existing business models of advisory firms and, in some cases, form new business models through the digital revolution. One […]

Can the Implied Volatility Surface predict Returns of shorting Puts?

We gave a brief introduction to put writing strategies already earlier this semester. We since thought about possible modifications of such strategies and their effects on return characteristics and return predictability. The positive returns of put writing strategies can be motivated from risk premia, as we show in the first part of the article. We […]

REITs: Is Liquid Real Estate the Solution for the Late Cycle? – Part 1

Real estate is traditionally associated with large capital expenditures and not a high amount of liquidity. Hence, the sector is usually reserved for long-term investments by high net worth individuals. Even more so, commercial use buildings are out of reach for most private individual’s pockets, making developers and other large entities to be the only […]