NEWSLETTER of December 23, 2021

The following content has been added at finexpert:

J.P. Morgan
2022 LONG-TERM CAPITAL MARKET ASSUMPTIONS
In the 26th edition of the research, expected returns remain low by historical standards, with a 60/40 portfolio projected to return just 4.3 percent, suggesting that investors need to look beyond traditional asset markets to find higher returns. Additionally, this year's research argues that while real bond yields will continue to lag, mispriced liquidity risk could make real assets serial winners. >more

PwC
EMISSIONSMARKT DEUTSCHLAND: EIN TURBULENTES IPO-JAHR GEHT ZU ENDE
In this report PwC analyzes all new share issues and capital increases on the Frankfurt Stock Exchange on a quarterly basis. In addition, new issues of corporate bonds by German issuers are recorded. The data on capital increases is based on information from Thomson Reuters and includes transactions up to and including December 10, 2021. >more

Ansarada
2022 M&A OUTLOOK: Q&A WITH THE TOP GLOBAL DEALMAKERS
Mergermarket is pleased to present 2022 M&A Outlook: Q&A with the Top Global Dealmakers, published in association with Ansarada. This interview-style report explores the key themes that will shape 2022, according to a group of leading M&A dealmakers around the globe. >more

Baker McKenzie
GLOBAL PRIVATE M&A GUIDE
Our Global Private M&A Guide examines the impact of new and existing laws on deal structuring and private M&A generally in nearly 40 countries. It provides a holistic overview of the key legal and regulatory M&A framework through all stages of the transaction process, including structuring the deal, getting to signing, integration and understanding the broader legal landscape - foreign investment restrictions, antitrust issues, tax considerations, employment law obligations and anti-bribery concerns. >more

KfW Research
FINANZIERUNG ÖFFENTLICHER INVESTITIONEN: KREDITE ALLEIN HELFEN DEN KOMMUNEN NICHT
The economic consequences of the Corona pandemic and the enormous investment requirements for the major social transformations such as climate protection, digitization and demographic change are creating new challenges for municipalities. The question of financing is one of the most urgent open issues. It will not be possible to pay for the investments from current budgets alone, which is why municipal loans in particular will play an important role. However, there are limits to the indebtedness of cities, municipalities and counties. Without a structural improvement in municipal finances, Germany will therefore not be able to cope with the upcoming investments in the future. >more

CORPORATE HIRING UNDER COVID-19
Murillo Campello, Gaurav Kankanhalli, and Pradeep Muthukrishnan
2020
Big data on job vacancy postings reveal multiple dimensions of the impact of Covid-19 on corporate hiring. Firms disproportionately cut hiring for high-skill jobs (within-firm downskilling). Financially-constrained firms scaled back high-skill hiring most, as did firms with workforces more adaptable to "working-from-home." Applying machine learning to job-ad texts, we show that firms have skewed hiring towards operationally-core positions. New positions take longer to fill, displaying greater flexibility regarding schedules, tasks, and requirements. Financing constraints amplify pandemic-induced changes to the nature of positions firms seek to fill, with constrained firms' new hires witnessing larger adjustments to job roles and employment arrangements. >more

UNDERSTANDING THE PRICING OF CURRENCY RISK IN GLOBAL EQUITY MARKETS
George Andrew Karolyi, and Ying Wu
2021
This paper explores potential economic mechanisms through which fluctuations in exchange rates are priced in international stock returns. Our investigation focuses on two currency risk factors – a dollar-risk factor and a carry-trade-risk factor – and their explanatory power for a variety of test assets comprised of monthly returns for over 47,000 stocks from 46 countries and over four decades. We find that currency risk is more likely to be priced among firms producing tradeable goods, and especially during periods of sudden exchange rate fluctuations. The divergent evolution is robust with respect to the evaluating criteria on firm internationalization, the benchmark factor models chosen, the sub-periods examined, and the test asset portfolios assessed. >more