Author: BSIC

Market Recap 02/12/2018

US Oil production in America continued its rise, hitting home market concerns that a surge in supplies would further put downward pressures on prices. Synchronized global movements have not helped either, as the rise in American oil production is matched by Saudi Arabia and Russia. The growth in supplies also vastly outstrips oil consumption, at […]

Fuelling the Electric Vehicle Revolution: Emerging Commodities

As the automotive industry evolves towards EV’s (electrical vehicles), an analysis of all the new commodities that will be used in the sector, in particular the battery sector, is required. EV batteries are made of an anode and a cathode. The anode is always made up of graphite, while the cathode has several different “formulas” […]

Your Guide to the Land of Higher Order Greeks

“Option Greeks” is the common name for the sensitivities in price of options or, in general, of derivatives and portfolios of derivatives, with respect to different factors, such as spot price of the underlying, implied volatility, risk-free interest rate, etc. Each Greek represents the ratio between the change in price and a small change in […]

SoftBank’s commitment in WeWork grows to 9% of Vision Fund’s AUM, its long-term tech focused investment arm

SoftBank Group CO [9984:TSE] – Market Cap as of 26/11/2018 JPY 9.614T Introduction SoftBank group (SBG) is a true believer in WeWork’s idea, with a total combination of debt and equity funding in the loss-making U.S. shared office space provider of $8.4 bn. This month, WeWork received an additional $3bn injection from SoftBank Corp, in […]

Consolidations amid the Oil slump: Cimarex acquires Resolute

Cimarex Energy Co [NYSE: XEC] – Market Cap as of 01/12/2018 $7.84bn Resolute Energy [NYSE: REN] – Market Cap as of 01/12/2018 $823.7m Introduction On November 19th 2018, Cimarex Energy announced that the company was planning to increase its acreage by 34% with precious shale-rich Permian Basin land through the definitive agreement to acquire Resolute […]

Boston Scientific takes another bite at M&A: the $4.2bn acquisition of BTG

Boston Scientific Corporation (NYSE: BTX) – market cap as of 27/11/2018: USD 48.57bn Introduction On November 20, 2018, Boston Scientific, a company operating as a provider of innovative medical solutions, successfully reached an agreement to acquire BTG plc, the UK developer and distributor of tools employed in the treatment of cancer and other vascular diseases, […]

Market Recap 25/11/2018

US The shortened Thanksgiving-week turned out to be the worst Thanksgiving-week since 1939, with the S&P 500 losing around 3.5% over the past week to close at 3,632.5 points as stock markets closed early at 1pm in New York due to the holiday. The S&P 500 is down 10% compared to its high in September […]

S&P500 Becoming a Marionette for MAGA?

Introduction Trading ideas and strategies are heavily affected by the decision makers’ overall view on the market. One of the main indicators of the US market strength is the S&P500 index, which is praised for its broad scope compared to other indices such as The Dow Jones Industrial Average. Many investors use this index as […]

Do Index Reviews Generate Abnormal Returns?

In this article we analyze the profitability of a sort of event-driven trading strategy, in which the “event” is represented by the addition or deletion of a stock in a MSCI Index. Since these indices are used as benchmark by lots of passive investing funds, index reviews can have an impact on the return of […]

Waiting paid off: Elliott and Veritas to jointly acquire Athenahealth for $5.7bn

Athenahealth (NASDAQ: ATHN) – market cap as of 11/22/2018: $5.36bn Introduction On the 12th of November 2018, private equity firm Veritas Capital and hedge fund Elliot Management announced their plan to buy Athenahealth Inc. for $5.7bn in an all-cash deal. The deal values Athenahealth at $135 per share, thus offering a 12.2% premium compared to […]

Brookfield Business and CDPQ made the day of Johnson Controls’ Shareholders by acquiring Power Solution Business for $13.2bn

Johnson Control International PLC [JCI: NYSE] – Market Cap as of 21/11/2018 $30.754bn Brookfield Business Partners LP [BBU: NYSE] – Market Cap as of 21/11/2018 $4.613bn Introduction On November 13th, 2018 Johnson Control International announced its intentions to sell Power Solutions Business, one of its most profitable divisions. Generating $8bn of revenues so far this […]

“Xs” and “Os”: SAP acquires Qualtrics for $8bn

SAP SE (FWB: SAP) – market cap as of 23/11/2018: €109.7bn ($124.5bn) Introduction On November 10th, 2018, enterprise software giant SAP announced that it would acquire Qualtrics, one of cloud computing’s rising ‘unicorns’, for $8bn in cash. The announcement was made shortly before the much anticipated Qualtrics IPO, which had been under preparation for months. […]

Dollar repatriation? Different story told by cross currency swap

Intro Cross-currency basis swaps, also known as basis swaps, are contracts in which two counterparties agree to exchange interest payments according to two floating rates as well as notional principals denoted in two different currencies. Theoretically, covered interest rate parity should hold in absence of arbitrage opportunities. Here S and F denote the spot and […]

Market Recap 18/11/2018

US The Dow Jones Industrial Average closed at 25,989.30 on Friday and a weekly gain of 2.6%. The S&P 500 closed at 2,736.27 down 1.6% w-o-w. The Nasdaq Composite closed at 7,247.83, down 2.14% on the week. The small-cap index Russell 2000 is down 1.41% over the previous week at 1527.533. Despite positive movement on […]

The Logic of Investing in Logistics

In this article we are going to discuss the increasing importance of logistics real estate and the trends that affected the sector in Europe. We will then explain the main drivers of demand and supply for logistic properties and how these are likely to change in the future years. Finally, after having analyzed the pros […]

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