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NEWSLETTER of March 9, 2018

 

The following content has been added at finexpert:


Studies > M & A

Deloitte

ACCELERATED M&A STUDIE 2018

The sale of assets or subsidiaries is often the last chance for companies in special situations ("Accelerated M&A") to maintain solvency and avert the threat of insolvency. This often leads to improvements in terms of liquidity and capital adequacy. The goal of the annual Deloitte study is to use an expert survey to identify trends, expectations and developments in the German Accelerated M&A market to give an outlook on the coming 12 months in relation to this particular market environment. >more

Studies > M & A

Baker & McKenzie

GLOBAL TRANSACTIONS FORECAST: ENERGY, MINING & INFRASTRUCTURE

Higher oil prices, plentiful financing and a strengthening global economy have been fueling a resurgence in energy sector transactions, with total M&A values more than doubling in 2017 to USD 345 billion. This is according to the Global Transactions Forecast, which also predicts M&A deal values will continue rising to a peak of USD 353 billion in 2018, before cooling in line with a slowing of global investment growth as borrowing costs rise in key economies and stretched stock market valuations start to soften. >more

Studies > Corporate Finance

KfW

KREDITMÄRKTE IM EURORAUM: HETEROGEN ABER GESUND

The lending business has revived in the eurozone, giving the economic recovery in the currency area a new quality. However, significant differences emerge across European economies: While the credit market in France is booming and is also experiencing strong growth in Germany, its momentum in Italy and Spain is much lower. >more

Studies > Macro

Deutsche Bank Research

WARUM SOLLTEN WIR KRYPTO-EUROS NUTZEN? DIGITALES BARGELD VON DER NOTENBANK – DIE SICHT DER NUTZER

The rise of Bitcoin and other cryptocurrencies, coupled with a decline in cash payments, is the backdrop to a new concept: digital cash issued by the central bank. The old scientific debate about why money is being raised revives. But what about the user perspective? Why should we use the crypto-euro? >more


Research Papers > Corporate Finance

NOTES ON BONDS: ILLIQUIDITY FEEDBACK DURING THE FINANCIAL CRISIS

David K. Musto, Greg Nini, and Krista Schwarz
2017
We trace the evolution of extreme illiquidity discounts among Treasury securities during the financial crisis, when bond prices fell more than six percent below more-liquid but otherwise identical notes. Using high-resolution data on market quality and trader identities and characteristics, we find that the discounts amplify through feedback loops, where cheaper, less-liquid securities flow to investors with longer horizons, thereby increasing their illiquidity and thus their appeal to these investors. The effect of the widened liquidity gap on transactions costs is further amplified by a surge in the price liquidity providers charge for access to their balance sheets in the crisis. >more

Research Papers > M & A

WINNING BY LOSING: EVIDENCE ON THE LONG-RUN EFFECTS OF MERGERS

Ulrike Malmendier, Enrico Moretti, and Florian S. Peters
2018
Do acquirors profit from acquisitions, or do acquiring CEOs overbid and destroy shareholder value? We present a novel approach to estimating the long-run abnormal returns to mergers exploiting detailed data on merger contests. In the sample of close bidding contests, we use the loser’s post-merger performance to construct the counterfactual performance of the winner had he not won the contest. We find that bidder returns are closely aligned in the years before the contest, but diverge afterwards: Winners underperform losers by 50 percent over the following three years. Existing methodologies, including announcement effects, fail to capture the acquirors’ underperformance. >more