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NEWSLETTER of December 20, 2019

 

The following content has been added at finexpert:


Studies > Performance

Strategy&

NEXTGEN CORPORATE BANKING: WIE BANKEN FIRMENKUNDEN IN DER KOMMENDEN DEKADE BEGEISTERN

In order to secure and expand market success in the corporate customer business, banks will have to consistently orient themselves strategically to the needs of their customers in the coming years. New players such as FinTech and Big-Tech providers are attacking above all small and medium-sized enterprises (SMEs), while foreign banks are increasingly targeting upper medium-sized enterprises, large customers and multinationals. Increased competition across segments for a largely stagnating market demands clear differentiation from banks and at the same time increases the pressure to innovate. >more

Studies > Performance

BCG

GLOBAL RETAIL BANKING 2019: THE RACE FOR RELEVANCE AND SCALE

The future of retail banking starts with the customer. More people are demanding simple, trustworthy products and services from financial institutions—or other companies offering similar services—that put them first. They want seamless digital banking solutions embedded in their daily lives. The combination of these expectations and technology-enabled solutions is fundamentally challenging the advantages of traditional banks (such as branch networks, trust, loyal customer bases, and proprietary data) and opening opportunities for newcomers. >more

Studies > Corporate Finance

Alvarez & Marsal

ACTIVIST INVESTORS IN EUROPE: WHO WILL THEY TARGET NEXT?

Shareholder activism directed at European companies is a growing and evolving reality for the Boards of quoted corporates. When such activism turns into a public campaign by one or more investors, there can be very significant financial and reputational risks for the targeted corporate and its Board. A&M has developed the “A&M Activist Alert” or “AAA” to predict which corporates will be the next to be targeted. The AAA is the most comprehensive statistical analysis of its kind. The analysis focuses on 1,473 corporates with a market capitalisation of US$200 million or more, listed and headquartered in the U.K., Germany, France, Scandinavia, Switzerland, Benelux, Italy and Spain. >more

Studies > M & A

Allen & Overy

M&A INSIGHTS Q4 2019

In an uncertain global environment, cross-border deals have declined by 27% as investors turn their attention to domestic markets to do what are often big, strategic deals, and with the top 10 deals of the year all within one country. Overall global trends show that deal value and volume are down by around 7% and 10% respectively but despite this, 2019 is still set to be the third strongest year to date in terms of value and the fourth strongest in transaction volume for a decade. >more


Research Papers > Corporate Governance

DO INDEX FUNDS MONITOR?

Davidson Heath, Daniele Macciocchi, Roni Michaely, and Matthew Ringgenberg
2019
Passively managed index funds now hold over 25% of U.S. mutual fund and ETF assets. The rise of index investing raises fundamental questions about monitoring and corporate governance. We examine the voice and exit mechanisms and find that compared to active funds, index funds rarely vote against firm management on contentious corporate governance issues, and do not use exit to express dissatisfaction with firm management. Moreover, across a variety of tests, we find no evidence that index funds engage with firm management. Our results suggest that the rise of index investing is shifting control from investors to firm managers. >more

Research Papers > Corporate Finance

RISK AND RETURN IN INTERNATIONAL CORPORATE BOND MARKETS

Geert Bekaert, and Roberto A. De Santis
2019
We investigate risk and return in the major corporate bond markets of the developed world. We find that average returns increase with maturity and ratings class (where ratings go from high to low) and that this pattern is fit well by a global CAPM model, where the market consists out of equity, sovereign and corporate bonds. Nonetheless, we strongly reject “asset class integration,” finding a model which separates the market portfolio into its three components to fit much more of the corporate bond return variation. The corporate bond factor receives much higher exposure than suggested by its relative market capitalization. We also strongly reject “international market integration”; local factors contribute substantially more to the variation of corporate bond returns than do global factors, and a “local” three-factor model explains more than 80% of the return variation for 59 of 63 portfolios examined. >more