NEWSLETTER of January 20, 2023

The following content has been added at finexpert:

Bain & Company
GLOBAL HEALTHCARE PRIVATE EQUITY AND M&A REPORT 2023
The first half of 2022 saw a continuation of 2021’s record-setting pace for healthcare private equity (HCPE) deal volume and deal value, and while geopolitical uncertainty, inflation, interest rate pressure, and tight credit did eventually catch up to the market in the third quarter, 2022 will still be the second-biggest year on record for HCPE. HCPE investors face intense competition, rising US interest rates, higher labor costs, and tighter credit — but ample dry powder and a track record of returns ensure healthcare will remain a priority for top firms even if winning deals requires becoming more specialized and creative in their approach. >more

Allen & Overy
THE YEAR AHEAD IN M&A: OUR DEAL-MAKING PREDICTIONS FOR 2023
In this edition of M&A Insights we share our deal-making predictions for the year ahead. Despite the uncertain geopolitical landscape, inflationary pressure and rising interest rates we are cautiously optimistic for the varied opportunities the next 12 months will bring. >more

World Economic Forum
GLOBAL RISKS REPORT 2023
The world faces a set of risks that feel both wholly new and eerily familiar. The Global Risks Report 2023 explores some of the most severe risks we may face over the next decade. As we stand on the edge of a low-growth and low-cooperation era, tougher trade-offs risk eroding climate action, human development and future resilience. >more

Vanguard
ECONOMIC AND MARKET OUTLOOK FOR 2023: BEATING BACK INFLATION
In our 2022 economic and market outlook, we outlined how we believed the removal of policy accommodation would shape the economic and financial market landscape. Policy has in fact driven conditions globally in 2022, one of the most rapidly evolving economic and financial market environments in history. But one fact has been made abundantly clear: So long as financial markets function as intended, policymakers are willing to accept asset price volatility and a deterioration in macroeconomic fundamentals as a consequence of fighting inflation. >more

THE DEMISE OF THE NYSE AND NASDAQ: MARKET QUALITY IN THE AGE OF MARKET FRAGMENTATION
Peter H. Haslag, and Matthew C. Ringgenberg
2022
U.S. equity exchanges have experienced a dramatic increase in competition from new entrants, resulting in the fragmentation of trading across venues. While market quality has generally improved over this period, we show most of the improvements have accrued to the largest stocks. We then show this bifurcation in market quality is related to the fragmentation of trading. Theoretically, more exchange competition should reduce trading costs, yet it may also increase adverse selection for liquidity providers, leading to higher spreads. We document evidence of both effects -- fragmentation improves market quality for large stocks while small stocks experience relatively worse quality. >more

SHORT SQUEEZES AND THEIR CONSEQUENCES
Paul Schultz
2022
A short squeeze occurs if borrowed shares are recalled and the short seller is unable to find another source of shares. This forces the short seller to terminate a position early. For most stocks the probability of a short squeeze is very low. Short squeezes, however, are not unusual for the hardest to borrow stocks. For these stocks, trading costs from squeezes are high, and have a significant impact on the returns to short selling. For hard-to-borrow stocks, short sellers also miss out on significant abnormal returns because squeezes force them to close positions. >more