NEWSLETTER of December 3, 2021

The following content has been added at finexpert:

Oliver Wyman | J.P. Morgan
UNLOCKING $120 BILLION VALUE IN CROSS-BORDER PAYMENTS
Global corporates move nearly $23.5 trillion across countries annually, equivalent to about 25% of global GDP. To do this, they have to rely on wholesale cross-border payment processes which remain sub-optimal from a cost, speed, and transparency standpoint. Aside from incurring transaction costs of more than $120 billion per annum (excluding FX costs), these processes also have additional hidden costs arising from trapped liquidity and delayed settlements. >more

UBS
THE VALUE OF A GREEN TRANSITION: A MODEL FOR INCLUDING DECARBONIZATION IN COMPANY VALUATION
The world is faced with an existential crisis, manifested by undeniable shifts in our planet’s climate system. Driven by this crisis, the financial community is rethinking its purpose. Greenhouse gas emissions are largely corporate, so what part do we play as asset owners? >more

Clearwater
INTERNATIONAL MULTIPLES HEATMAP: Q3 2021
Unquote is pleased to present the Clearwater International Multiples Heatmap: Q3 2021, published in association with Clearwater International. The report identifies key themes driving European Private Equity (PE) deals’ EV/EBITDA multiples on a quarterly basis. >more

Deloitte
ART & FINANCE REPORT 2021
Despite the Corona crisis and other global uncertainties, the market for art as an investment continued to grow. Investor interest in sustainable investments and new technologies continued to grow. These are the key findings of the 7th Art & Finance Report 2021 by Deloitte and ArtTactic. The report has been an important barometer for the ecosystem of the art and finance industry for ten years and highlights the most important developments in the market. >more

THE RETURN EXPECTATIONS OF PUBLIC PENSION FUNDS
Aleksandar Andonov, and Joshua D. Rauh
2021
The return expectations of public pension funds are positively related to cross-sectional differences in past performance. This positive relation operates through the expected risk premium, rather than the expected risk-free rate or inflation rate. Pension funds act on their beliefs and adjust their portfolio composition accordingly. Persistent investment skills, risk-taking, efforts to reduce costly rebalancing, and fiscal incentives from unfunded liabilities cannot fully explain the reliance of expectations on past performance. The results are consistent with extrapolative expectations, as the dependence on past returns is greater when executives have personally experienced longer performance histories with the fund. >more

FLATTENING THE CURVE: PANDEMIC-INDUCED REVALUATION OF URBAN REAL ESTATE
Arpit Gupta, Vrinda Mittal, Jonas Peeters, and Stijn Van Nieuwerburgh
2021
We show that the COVID-19 pandemic brought house price and rent declines in city centers, and price and rent increases away from the center, thereby flattening the bid-rent curve in most U.S. metropolitan areas. Across MSAs, the flattening of the bid-rent curve is larger when working from home is more prevalent, housing markets are more regulated, and supply is less elastic. Housing markets predict an urban revival with urban rent growth exceeding suburban rent growth for the foreseeable future, as working from home recedes. >more