NEWSLETTER of July 28, 2023

The following content has been added at finexpert:

We updated the capital market data

(Multiples, Betas and Returns) as to July 15, 2023 >more

Invesco
GLOBAL SOVEREIGN ASSET MANAGEMENT STUDY 2023
Initiated in 2013, this study has expanded in scope over time. This year, it captures the viewpoints and opinions of 142 chief investment officers, heads of asset classes, and senior portfolio strategists from 85 sovereign wealth funds and 57 central banks. Collectively, these institutions manage approximately US$21 trillion in assets (as of March 2023). >more

BlackRock
2023 MIDYEAR OUTLOOK: NEW REGIME, NEW OPPORTUNITIES
The new, more volatile economic regime provides different yet abundant investment opportunities. Persistent supply constraints are compelling major central banks to hold policy rates high. We find opportunities by getting granular within asset classes and harnessing mega forces. >more

KPMG
VENTURE PULSE Q2 2023
Investment in the global venture capital market fell dramatically in the first half of this year compared with the same period last year. While global venture capital investments from January to June 2022 were still at $331.1 billion, this sum fell by 50% to just $163.6 billion in the first six months of this year. This almost reached the low level of the Corona year 2020 (156.6 billion). >more

Deutsche Bank Research
IS DISINFLATION DIFFERENT THIS TIME AROUND?
Over the past year, the view that a recession would be needed to enable the Fed to achieve its firm target of returning inflation to 2% has gone from long shot to consensus view to, essentially, a coin toss. In their recent US Economic Perspectives report, Deutsche Bank Research attempts to answer the question: Recession or soft landing: Is disinflation different this time? >more

CLIMATE RISK AND STRATEGIC ASSET REALLOCATION
Tobias Berg, Lin Ma, and Daniel Streitz
2023
Large emitters reduced their carbon emissions by around 12% after the 2015 Paris Agreement (“the Agreement”) relative to public firms that are less in the limelight. We show that this effect is driven by divestments. Large emitters are 9 p.p. more likely to divest pollutive assets in the post Agreement period, an increase of over 75%. This divestment effect comes from asset sales and not from closures of pollutive facilities. There is no evidence for increased engagements in other emission reduction activities. Decomposing emission growth rates shows that divestments explain up to half of the overall emission reduction by large emitters. Overall, our results indicate significant asset reallocation effects after the Agreement, with potentially limited effects on aggregate emission levels. >more

MONETARY POLICY TRANSMISSION THROUGH ONLINE BANKS
Isil Erel, Jack Liebersohn, Constantine Yannelis, and Samuel Earnest
2023
Financial technology has been reshaping commercial banking. It has the potential to radically alter the transmission of monetary policy, by lowering search costs and expanding bank markets. This paper studies the reaction of online banks to changes in federal fund rates. We find that these banks increase rates that they offer on deposits significantly more than traditional banks do. A 100 basis points increase in federal fund rate leads to a 30 basis points larger increase in rates of online banks. Consistent with the rate movements, online bank deposits experience inflows, while traditional banks experience outflows during monetary tightening of 2022. The findings are consistent across banking markets of different competitiveness and demographics. Our findings shed new light on the role of online banks in interest rate pass-through and deposit channel of monetary policy. >more