NEWSLETTER of January 31, 2020

The following content has been added at finexpert:

UBS

HIGH YIELD OUTLOOK

The recent decline of global bond yields in 2019 resulted in strong total returns across every segment of the bond market including high yield. As we begin the year, we estimate approximately 90% of the market value of the global high yield universe is trading along a historical bottom in yields. In this outlook, we explain why yields are so low and why we believe maintaining an allocation to high yield still makes sense for fixed income investors. >more

BCG

GREAT FAMILY BUSINESSES NEED GOOD GOVERNANCE

Family-owned businesses are employers of millions of individuals globally, generators of sizable streams of tax revenue, and financial and social anchors for many communities. The families that own these businesses typically exert considerable influence over their management and operations and, as a result, their performance and survival. The decisions that these families make impact their wealth as well as the futures of the people they employ and often the ecosystems in which they operate. >more

Deloitte

KUNST ALS KAPITALANLAGE: HERAUSFORDERUNGEN UND CHANCEN

The market for art as an investment has been characterized by two opposing trends in recent years. On the one hand, art as an investment continues to enjoy great popularity; on the other hand, investments in this area have been characterized by restraint. This can be seen from the current "Deloitte Art & Finance Report 2019", in which Deloitte and the London-based research company ArtTactic examined the international art and financial markets. >more

KPMG

VENTURE PULSE Q4 2019

Despite a decline in the number of deals, VC investment globally remained strong in Q4’19. While 2019’s total VC investment fell sharply compared to 2018’s record-shattering $298 billion, VC investment remained significantly higher than all previous years. >more

Deutsche Bank Research

2020 OUTLOOK – GAINING SPEED

Read on for our discussion of the economic outlook and the evolution of downside risks. We also outline our views on major central banks, key political developments, and major risks. In addition, we update our cross asset market views. >more

INDUSTRY STRUCTURE AND THE STRATEGIC PROVISION OF TRADE CREDIT BY UPSTREAM FIRMS

Alfred Lehar, Yang Song, and Lasheng Yuan
2019
Trade credit can serve as a strategic tool for a supplier to influence retailer behavior in the product market. The unique structure of trade credit, a period of free financing followed by a high interest rate increases the cost of rolling over unsold goods making retailers more aggressive when demand is low. Ex-ante retailers optimally hold smaller inventories which softens competition when demand is high. The modified product market behavior induced by trade credit financing increases the producer surplus at the expense of consumers and reduces welfare in oligopoly markets. >more

PROXY ADVISORY FIRMS: THE ECONOMICS OF SELLING INFORMATION TO VOTERS

Andrey Malenko, and Nadya Malenko
2019
We analyze how proxy advisors, which sell voting recommendations to shareholders, affect corporate decision-making. If the quality of the advisor's information is low, there is overreliance on its recommendations and insufficient private information production. In contrast, if the advisor's information is precise, it may be underused because the advisor rations its recommendations to maximize profits. Overall, the advisor's presence leads to more informative voting only if its information is sufficiently precise. We evaluate several proposals on regulating proxy advisors and show that some suggested policies, such as reducing proxy advisors' market power or decreasing litigation pressure, can have negative effects. >more