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NEWSLETTER of April 6, 2018

 

The following content has been added at finexpert:


Studies > M & A

Deloitte

2018 GLOBAL CHEMICAL INDUSTRY MERGERS AND ACQUISITIONS OUTLOOK

The global chemical industry has experienced several years of strong M&A activity, as companies pursued growth, realigned their portfolios, and focused on core competencies. Questions abound: Have consolidation and portfolio realignment achieved their goals for the industry? Will activist investors drive the course of the M&A activities? Will state-owned enterprises begin to impact deal activity? Have valuations driven acquirers out of the market? The 2018 Global chemical industry M&A outlook answers these questions and others. >more

Studies > Corporate Finance

Oliver Wyman

CHANGING THE WORLD'S MOST IMPORTANT NUMBER: LIBOR TRANSITION

LIBOR, the London Interbank Offered Rate, is a series of benchmark interest rates and has been called the “world’s most important number.”  It is a globally recognized base rate for pricing loans, debt, and derivatives.  As a key part of the financial services infrastructure, over $240 trillion in products reference LIBOR. As LIBOR’s underlying transactions have diminished, regulators have announced a target date to stop supporting it and begun the process of identifying and creating alternative rates.  However, these rates are structurally different from LIBOR and it is unclear how existing products referencing LIBOR will change, and what new products will emerge. >more

Studies > Performance

Morgan Stanley / Oliver Wyman

WHOLESALE BANKS AND ASSET MANAGERS – WINNING UNDER PRESSURE

The 2018 edition of this annual report offers an overview of industry trends and analysis in wholesale banking and asset management. It finds that the contrast between winners and losers should be stark as banks and asset managers battle for near-term growth, while also positioning themselves to benefit from powerful longer-term shifts. >more

Studies > Macro

J.P. Morgan

GUIDE TO THE MARKETS - Q2 2018

Updated each quarter, the Guide to the Markets illustrates a comprehensive array of market and economic trends and statistics for Europe. This includes information about equities, fixed income and other asset classes as well as macroeconomic analyses. >more


Research Papers  > Risk Management

INTEREST RATE RISK MANAGEMENT IN UNCERTAIN TIMES

Lorenzo Bretscher, Lukas Schmid, and Andrea Vedolin
2017
We revisit the evidence on real effects of uncertainty shocks in the context of interest rate uncertainty, which can be hedged in the swap market. We document that adverse movements in interest rate uncertainty predict significant slowdowns in real activity, at the aggregate and at the firm-level. We develop a dynamic model of corporate investment and risk management to examine how firms cope with interest rate uncertainty and test it using a rich dataset on corporate swap usage. Our results suggest that interest rate uncertainty depresses financially constrained firms' investment in spite of hedging opportunities, as for these firms risk management through swaps is, effectively, risky. >more

Research Papers > M & A

HUMAN CAPITAL RELATEDNESS AND MERGERS AND ACQUISITIONS

Kyeong Hun Lee, David C. Mauer, and Qianying Xu
2017
We construct a measure of the pairwise relatedness of firms’ human capital to examine whether human capital relatedness is a key factor in mergers and acquisitions. We find that mergers are more likely and merger returns and post-merger performance are higher when firms have related human capital. These relations are stronger or only present in acquisitions where the merging firms do not operate in the same industries or product markets. Reductions in employment and wages following mergers with high human capital relatedness suggest that the merged firm has greater ability to layoff low quality and/or duplicate employees and reduce labor costs. We further show in a falsification test that human capital relatedness has no effect on acquiring firm returns in asset sales when little or no labor is transferred, which helps validate our measure of human capital relatedness. >more