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NEWSLETTER of March 15, 2019

 

The following content has been added at finexpert:


Studies > Performance

Capgemini Research Institute

WHERE ARE BANKS AND INSURERS ON THEIR DIGITAL MASTERY JOURNEY?

The financial services industry stands at a crossroads and dark clouds of disruption are brewing overhead. As consumers become more connected and tech-savvy, FinTech and InsurTech upstarts edge their way onto the center stage, and new technologies and the sharing economy increasingly define our daily lives, banks and insurers must develop new value propositions to compete and prosper. The key to doing so is focusing on both leadership and digital capabilities – a status we call “digital mastery.” Our latest research shows fewer than one-third (30%) of financial services firms have thus far attained digital mastery. >more

Studies > Performance

Ernst & Young

TECH START-UPS RESHAPING THE ECONOMY: VENTURE CAPITAL AND START-UPS IN GERMANY 2018

Since their foundation, the 100 largest German tech start-ups have been able to collect 8.1 billion US dollars from investors. The Auto1 Group is at the top of the rankings, having collected almost 1.1 billion US dollars since its foundation. Interestingly, there is a strong focus on the financial sector: one in five (21 companies) among the top 100 start-ups is a FinTech (previous year 14). >more

Studies > Alternative Investments

McKinsey & Company

PRIVATE MARKETS COME OF AGE

Private markets stayed strong in 2018. True, fundraising was down 11 percent. But $778 billion of new capital flowed in. Investors have a new motivation to allocate to private markets: exposure. More investors believe that private markets have become effectively required for diversified participation in global growth. Global private equity (PE) net asset value grew by 18 percent in 2018; this century, it has grown by 7.5 times, twice as fast as public-market capitalization. Private markets, including PE, debt, infrastructure, real estate, and natural resources, have graduated from the fringes of the economy to the mainstream. >more

Studies > Macro

Deloitte

BREXIT BRIEFING

In the current issue of "Brexit and the German Economy: Risks, Expectations and Strategies of Companies", we analyse the perspective of German companies on the consequences of Brexit and the Brexit process in cooperation with the Federation of German Industries (BDI). The focus here is on companies' assessments of the Brexit negotiations, the consequences, risks and opportunities of the Brexit for Germany as a business location and for the companies themselves, as well as the political consequences. >more


Research Papers > Corporate Finance

WHY DO FIRMS ISSUE GUARANTEED BONDS?

Fang Chen, Jing-Zhi Huang, Zhenzhen Sun, and Tong Yu
2018
Corporations often use affiliated firms as guarantors when issuing guaranteed bonds, thus combining external financing with internal credit enhancements. In this study, we empirically examine the potential determinants of corporate guaranteed debt issuance. We find evidence that issuers with fewer tangible assets, lower credit ratings, more pronounced debt overhang and/or greater managerial agency problems are more likely to issue guaranteed bonds. Moreover, we find that while firms generally issue guaranteed bonds with different motives, alternative incentives for guaranteed bond uses are largely captured by bond prices at issuance. >more

Research Papers  > M&A

THE PERFORMANCE OF ACQUISITIONS BY HIGH DEFAULT RISK BIDDERS

Evy Bruyland, Meziane Lasfer, Wouter De Maeseneire, and Wei Song
2019
We investigate the takeover strategies of high default risk acquirers and their value impact. We find that these bidders select bigger, less profitable and unrelated targets, pursue transactions during recessions, and pay with shares by offering target shareholders high premiums. Their long-term buy-and-hold returns are extremely negative, and reflect fundamentally their substantial drop in profitability combined with high leverage. We show that the well-established long-run underperformance of acquiring firms is largely driven by this sub-set of acquirers. The results are similar when we use alternative measures of default risk and performance, and a global sample of non-US bidders. >more