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NEWSLETTER of March 29, 2019

 

The following content has been added at finexpert:


Studies > Performance

Invesco

INVESCO GLOBAL FIXED INCOME STUDY 2019

Our second global fixed income study provides insights on the views, opinions and experiences of 145 fixed income specialists, across pension funds (both defined benefit and defined contribution), sovereign wealth funds, insurers and wholesale investors including private banks, diversified fund managers, multi-managers, and model builders. With the end of the cycle considered to be in sight and some seminal changes to consider in relation to the construction of global fixed income assets and their role in wider portfolios, fixed income investors are facing more challenging conditions ahead. >more

Studies > M & A

ValueTrust

DACH CAPITAL MARKET STUDY

The study was elaborated by ValueTrust Financial Advisors SE (ValueTrust) in cooperation with finexpert and the Institute of Auditing and Sustainability Accounting at the Johannes Kepler University Linz. This study provides a data compilation of the capital market parameters that enables an enterprise valuation in Germany, Austria and Switzerland. It has the purpose to serve as an assistant and data source as well as to show trends of the analyzed parameters. >more

Studies > Alternative Investments

Bain & Company

ASIA-PACIFIC PRIVATE EQUITY REPORT 2019

Asia-Pacific private equity (PE) investors kept the party rolling in 2018, setting new highs for the industry after a record-breaking 2017. Deal value peaked, exit values hit an all-time high and returns were strong. However, fund-raising declined, and increased competition created tougher market conditions for many PE funds. Investors’ appetite for technology and Internet companies was undiminished, and deal size in these two sectors mushroomed. >more

Studies > Macro

Bank for International Settlements

BIS QUARTERLY REVIEW: MARCH 2019

The period under review started just the way the last one ended. In the second half of December, the risk-off phase persisted. Led by the US markets, stock prices worldwide continued to decline, volatility to rise, credit spreads to widen, sovereign bond yields to soften, term premia to fall and market-implied inflation expectations to dip. Volumes in the leveraged loan market and issuance of high-yield bonds slowed to a trickle; and withdrawals from mutual funds added to the surge in corporate spreads. >more


Research Papers > Corporate Finance

THE VALUE OF COLLATERAL IN TRADE FINANCE

Anna M. Costello
2018
Suppliers are subject to the credit risk of their customers when they sell products on credit. However, rights to the collateral value of the products they sell may mitigate some of this risk. This paper demonstrates the important role of laws that support suppliers' rights to reclaim and liquidate collateral. Using a change in the U.S. bankruptcy code that altered the rights of a subset of suppliers, I use a difference-in-differences setting to show that an improvement in suppliers' rights to the liquidation value of collateral results in an increase in the amount and duration of trade credit offered. The increase in collateral protection also reduced suppliers' lending standards, resulting in more dispersed trade credit lending and riskier customer portfolios. Finally, I find that the increase in collateral rights decreased suppliers' incentives to monitor their customers, consistent with collateral and monitoring being substitutes. Overall, the paper shows that with strong legal protections in place, trade credit has an important collateral component. >more

Research Papers  > M&A

THE BRIGHT SIDE OF FIRE SALES

Jean-Marie A. Meier, and Henri Servaes
2018
Firms that buy assets in fire sales earn excess returns that are two percentage points higher than in regular acquisitions. The mechanism behind this result is the reduced bargaining power of the seller. We find no difference in real effects or in the combined returns for buyers and sellers between fire sales and regular acquisitions, suggesting that the quality of the match is similar in both types of transactions. The externalities of fire sales for other stakeholders are limited. These results indicate that the welfare losses associated with fire sales are smaller than previously thought. >more