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NEWSLETTER of January 17, 2025


The following content has been added at finexpert:


Studies > Performance

Official Monetary and Financial Institutions Forum
COMPETITIVENESS OF EUROPEAN FINANCIAL SERVICES
Europe’s banks and asset managers, with the support of the region’s politicians and regulators, must seize an opportunity to close the ‘competitiveness gap’ with their peers in the US and the rest of the world, a report commissioned by Luxembourg for Finance and published today by OMFIF urges. The report is a data study of financial competitiveness, assessing indicators such as size, diversification, profitability, pricing power and valuation. It reveals in stark terms the decline of European financial services firms on a global scale since the financial crisis of 2008. >more

Studies > Corporate Finance

PwC
GLOBAL INVESTOR SURVEY 2024
Investors appear sanguine about global economic growth in the next 12 months. A little more than half of the respondents to PwC’s 2024 Global Investor Survey expect the global economy to grow in the coming year, compared with less than a third who expect it to decline. Moreover, only a third of investors consider macroeconomic volatility or inflation to be a key threat, compared with two-thirds who did so just two years ago. Instead, they rate most of the key threats we surveyed at roughly the same level, requiring companies to be agile and resilient in the face of a complex and dynamic operating environment of multiple interconnected risks. >more

Studies > Corporate Finance

S&P Global
EUROPEAN STRUCTURED FINANCE OUTLOOK 2025
European securitization issuance looks set to remain high at €135 billion in 2025, given a broadening base of originators and sponsors, a better outlook for most areas of underlying lending, and rising market engagement from bank originators motivated by both funding and risk transfer requirements. Structured finance ratings have mostly weathered the effects of higher interest rates, remaining largely stable over the past year, especially at investment-grade levels. The end of central banks' cheap term funding schemes will likely support continued growth in bank-originated securitization supply in 2025, especially in the U.K., where many loans mature near the end of the year.  >more

Studies > Alternative Investments

Coinbase
2025 CRYPTO MARKET OUTLOOK
As we look forward into 2025, the cryptocurrency market is poised for transformative growth. The maturation of the asset class continues to gain momentum, with increasing institutional adoption and expanding use cases across its various sectors. In just the past year, spot ETFs were approved in the US, tokenization of financial products increased dramatically, and stablecoins saw massive growth and greater integration into the global payments framework. >more


Research Papers > Corporate Finance

SELF-DECLARED BENCHMARKS AND FUND MANAGER INTENT: 'CHEATING' OR COMPETING?
Huaizhi Chen, Richard B. Evans, and Yang Sun
2024
Using a panel of self-declared benchmarks, we examine funds’ use of mismatched benchmarks over time. Mismatching is high at the beginning of our sample (45% of TNA in 2008), consistent with prior studies, but declines significantly over time (27% in 2020), driven by existing specialized funds changing benchmarks to match their style. Market forces including investor learning, institutional investor governance, market competition, and product positioning all play a role in the benchmark correction decisions. For broad funds, mismatched benchmarks are not associated with a performance bias. Our study highlights the value of market solutions in aligning manager-investor interests. >more

Research Papers > Corporate Finance

PRICE DISCOVERY FROM OFFER PRICE TO OPENING PRICE OF INITIAL PUBLIC OFFERINGS
Reena Aggarwal, and Yanbin Wu
2024
We examine the preopening process and price discovery from the offer price to the first open price in initial public offerings. The extent of price discovery during preopening is influenced by firm characteristics and preopening attributes, such as volume of shares executed in preopening, canceled orders, order imbalance, and changes in indicative price. Institutional investors cancel four orders for every executed order. Each phase of preopening contributes to incremental price discovery. In “hot” IPOs, almost all price discovery occurs during preopening, whereas in “cold” IPOs, half of the price adjustment occurs after the market opens. >more

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