Post-GFC (Global Financial Crisis) analyses suggest that the Private Equity (PE) sector missed the best buying opportunity due to overly cautious decisions of GPs and LPs. For the PE model, the GFC was a first real test of their reactive strategies and the questions that arose were whether the firms will succeed at refinancing theirContinue reading “Will Private Equity Seize the Upside in a Downturn?”
Banks’ regulations are a key element to understand banks behaviour and their influence on the markets. This paper aims to go through the evolution of the Basel Accords, with a focus on banks’ capital requirements. From Basel I to Basel IV The Basel Committee on Banking Supervision (BCBS), founded in 1974, is the global standardContinue reading “THE FINAL BASEL III FRAMEWORK”
Impact of the virus on the number and conclusion of M&A dealsSince the novel coronavirus (COVID-19) pandemic keeps up its omnipresence in the global news, the M&A market is now plummeting after several years of booming M&A activity. Indeed, this unprecedented crisis caused severe ravages in the stock market and hence drastically impacted corporate shareContinue reading “The impact of the coronavirus outbreak on the M&A Deal Activity”
This week, the FT published an article about how BlackRock is highlighting the changing role of sustainable investments. They claim that “investors have been warned of the need to prepare for a potentially drastic repricing of assets as huge sums of money flowing into sustainable investment products threaten to upend traditional pricing models”. According toContinue reading “How the theory of the ESG-efficient frontier will impact ESG-investing in the future”
The world economy is falling into recession as the virus outbreak involves more countries, but as the IMF chief economist Gita Gopinath points out, this is not like a normal recession. This health system crisis and the drastic governments’ actions as the self-isolation and forced quarantine are strongly affecting the global real economy. These actionsContinue reading “Markets reaction over Covid-19 outbreak – Insight on pandemic and corona bonds”
Google has struck a $2.1bn deal to buy fitness-tracking pioneer Fitbit, in order to team up to take on Apple’s fast-growing wearable-tech business. Google announced the acquisition in November 2019, and the deal is expected to go through in early 2020 following the Fitbit shareholders’ approval of the third of January. Could this mean we’llContinue reading “The birth of a true Apple Watch competitor”
Wall Street, New York. On February 19, at the closure of the stock market, Tesla has reached the highest valuation since the company’s listing in 2010: $917.42 per share. A new outstanding record for Elon Musk’s creature, a company that has a tormented and turbulent history, but which, in good or bad times, has alwaysContinue reading “TESLA REACHES A NEW ALL-TIME HIGH. IS THIS FINALLY GOING TO BE ITS TURNING POINT?”
These last months have been characterized by an increasing importance of the role of the Repurchase Agreements in the financial markets. The rate linked to it has never been this fundamental thus attracting the attention of the entire financial world. Much attention was attributed to the unprecedented spike of Repo rates in September. Market participantsContinue reading “REPO RATE SPIKE AND FEDERAL RESERVE INTERVENTION”
During 2019, issues related to sustainable finance have gained momentum throughout the world (Goldman Sachs pledging to invest more than $750 billon in ESGs by 2030 in December 2019) but especially in Europe and more precisely in the EU. This issue has indeed become the cornerstone of EU policy. The EU Green Deal demonstrates theContinue reading “The EU setting the pace for sustainable finance across the world”
The link between a country’s economic health and the behaviour of its stock index, specifically the performance of the index during periods of decreasing economic growth has always been an intriguing topic. Accordingly, the aim of this article is to illustrate the role of the DAX in the German economy and how the index movedContinue reading “Analysing the DAX in Germany’s economy”
ESCP Finance Society