NEWSLETTER of June 23, 2023

The following content has been added at finexpert:

FTI Andersch
CLIMATE GOVERNANCE - WIE GUT IST DER DEUTSCHE MITTELSTAND AUF DIE KLIMATRANSFORMATION VORBEREITET?
Changing stakeholder requirements and increasing political pressure are forcing companies to embed topics such as environmental, social and governance (ESG) and climate compliance more firmly internally and to adapt processes. For this reason, FTI-Andersch, in cooperation with Prof. Dr. Patrick Velte (Chair of Business Administration, esp. Accounting, Auditing and Corporate Governance at the Leuphana University of Lüneburg), developed a structured questionnaire on the topic of "Climate-related Corporate Governance" and, together with the forsa Institute Berlin, surveyed 152 German companies (250 to 5,000 employees and annual sales of € 40 to 1,000 million) on the status quo. >more

Rothschild
MÄRKTE & TRENDS - JUNI 2023
Tensions with China eased somewhat after the G7 summit: a joint communication emphasized "de-risking" rather than "decoupling," and Biden also made more positive comments about the countries' relationship. The concentrated equity market rally continued: the performance of the five largest U.S. technology stocks, which account for nearly 22% of the S&P 500 index, were responsible for almost all of the year-to-date performance of around 10%. >more

Neuberger Berman
ASSET ALLOCATION COMMITTEE OUTLOOK 2Q 2023
Despite equities holding up well so far in 2023, the Asset Allocation Committee remains cautious, anticipating volatility as we approach peaks in rates and inflation and troughs in economic growth and earnings. As recent events appear to have accelerated the end of the rate-hiking cycle, however, we also believe it is an ideal time to start planning a journey back to a more neutral stance on risky assets in public markets. We think investors can afford to be patient, as cash and high-quality, shorter-duration fixed income assets offer both returns and optionality. >more

Lombard Odier
DER WEG ZU EINEM SCHWÄCHEREN US-DOLLAR IST HOLPRIG
Due to the unexpectedly robust U.S. economy, the expected timing of a recession is shifting further and further back. This has supported the US dollar in recent months. However, we expect the dollar to weaken against major currencies such as the euro, the Japanese yen and the Swiss franc by the end of 2023. >more

FAMILY FIRMS IN ENTREPRENEURIAL FINANCE: THE CASE OF CORPORATE VENTURE CAPITAL
Mario Daniele Amore, Samuele Murtinu, and Valerio Pelucco
2023
We show that families are an engine of venturing activities: one third of all corporate venture capital (CVC) deals in the US from 2000 to 2017 originated from family firms. Family firms orchestrate CVC activities differently than non-family firms: they syndicate more often and with more reputable investors, join larger syndicates, and make more proximate deals (geography- and industry-wise), especially when they are led by a family CEO. Family firms’ approach to corporate venturing maps into performance results: family CVC-backed ventures exhibit a higher likelihood of successful exit. We explore a number of mechanisms pertaining to asymmetric information and risk management. Collectively, our results shed light on the important, and largely unexplored, role of family firms in CVC. >more

THE EFFECTS OF CRYPTOCURRENCY WEALTH ON HOUSEHOLD CONSUMPTION AND INVESTMENT
Darren Aiello, Tetyana Balyuk, Marco Di Maggio, Mark J. Johnson, Scott R. Baker, and Jason D. Kotter
2023
This paper uses transaction-level data across millions of accounts to identify cryptocurrency investors and evaluate how fluctuations in individual crypto wealth affect household consumption, investment, and local real estate markets. We estimate an MPC out of unrealized crypto gains of $0.08, mostly driven by increases in cash/check spending and mortgages. Moreover, households sell crypto to increase both discretionary as well as housing spending. As a result, crypto wealth causes house price appreciation—counties with higher crypto exposure experience higher growth in home values following high crypto returns. Our results indicate that cryptocurrencies have substantial spillover effects on the real economy through consumption and investment into other asset classes. >more