NEWSLETTER of July 14, 2023

The following content has been added at finexpert:

BCG
GLOBAL FINTECH 2023: REIMAGINING THE FUTURE OF FINANCE
In just two short decades, fintech — an amalgam of “finance” and “technology” — has exploded onto the scene, revolutionizing the financial services industry as we know it. This dynamic sector has been fueled by the various innovations that have shaped a generation, each one seemingly more game-changing than the last. >more

FTSE Russell
ASSET ALLOCATION INSIGHTS - JUNE 2023
Disinflation, stable 7-10 year sovereign yields, stronger-than-expected economic growth and AI euphoria lead to risk-on rally, but downside risk remains. >more

PGIM
2023 Q3 OUTLOOK
The global growth outlook for the balance of 2023 appears tenuous with a strong labor market and recent economic growth supporting the view that the US could avoid recession. Meanwhile, Europe must contend with rising interest costs, which are already weighing on Eurozone consumers, while weaker demand from China is a negative for manufacturing. >more

I-Advise
STUDIE ZUR UNTERNEHMENSBEWERTUNG BEI GESELLSCHAFTSRECHTLICHEN BEWERTUNGSANLÄSSEN
The ninth edition of the study on corporate valuation situations in Germany shows the development of valuation practice in squeeze-outs, domination and profit and loss transfer agreements, mergers and changes of legal form in the years 2010 to 2022 and now comprises 244 valuation cases examined. >more

REINTERMEDIATION IN FINTECH: EVIDENCE FROM ONLINE LENDING
Tetyana Balyuk, and Sergei Davydenko
2023
We document the unique structure of the peer-to-peer lending market. Originally designed as decentralized, the market has become highly, but not fully, reintermediated. The platforms' software now performs essentially all tasks related to loan evaluation, whereas most lenders are passive and automatically fund most applications on offer. Yet unlike banks, and in contrast to theories predicting full reintermediation, the platforms provide detailed loan information, and some active loan pickers coexist with passive investors. We argue that while intermediation attracts unsophisticated passive investors, transparency in the presence of active investors resolves the lending platform's moral hazard problem inherent in intermediated markets. >more

INDEX PROVIDERS: WHALES BEHIND THE SCENES OF ETFS
Yu An, Matteo Benetton, and Yang Song
2023
Most ETFs replicate indexes licensed by index providers. We show that index providers wield strong market power and charge large markups to ETFs that are passed on to investors. We document three stylized facts: (i) the index provider market is highly concentrated; (ii) investors care about the identities of index providers, although they explain little variation in ETF returns; and (iii) over one-third of ETF expense ratios are paid as licensing fees to index providers. A structural decomposition attributes 60% of licensing fees to index providers’ markups. Counterfactual analyses show that improving competition among index providers reduces ETF fees by up to 30%. >more