NEWSLETTER of June 4, 2021

The following content has been added at finexpert:

Horvath & Partners / FINANCE
CFO PANEL FRÜHJAHR 2021
For the FINANCE CFO Panel, the FINANCE editorial team surveys more than 150 CFOs of leading German companies every six months. We want to find out what moves CFOs, what trends in financing and corporate strategy they expect, and what drives them personally. The panel shows assessments of current topics relating to modern financial management - exclusively from the CFOs' point of view. >more

CMS Hasche Sigle / FINANCE
M&A PANEL APRIL 2021
After the coronavirus crisis largely paralysed the M&A market last year, deal flow is now picking up again and has almost reached pre-crisis levels – despite the pandemic being far from over in terms of economic impact and infections. The findings of this year’s first M&A panel survey by international commercial law firm CMS and FINANCE magazine show how senior staff in the M&A departments of German companies plus investment bankers and M&A consultants assess the market. >more

Clearwater International
CLEARWATER INTERNATIONAL MULTIPLES HEATMAP Q1 2021
Unquote is pleased to present the Clearwater International Multiples Heatmap, published in association with Clearwater International. The report identifies key themes driving European Private Equity (PE) deals’ EV/EBITDA multiples on a quarterly basis. The report shows a renewed sense of confidence in the European PE market which is reflected in a steady increase in valuations over the course of the year. Deal multiples saw four consecutive quarterly increases to reach 11.5x in the first quarter of the year – a new high. >more

Invest Europe
PRIVATE EQUITY AT WORK
Private equity is an engine for growth, and growth is an engine for creating jobs across Europe. This was our message last year when we published our first ever Private Equity at Work report presenting a transparent account of the European private equity industry’s record on employment. This second edition of our Private Equity at Work report greatly expands data collection on employment in portfolio companies backed by private equity firms in Europe. Where last year we collected data only from Invest Europe members, the report now has - as its backbone - data from all portfolio companies in Europe backed by any private equity firm. >more

FTSE Russell
HOW TO MEASURE THE TEMPERATURE OF SOVEREIGN ASSETS
FTSE Russell and Beyond Ratings offer a methodology to assess countries’ implied global warming temperatures based on their national commitments concerning climate change mitigation, as per their NDCs (“Nationally Determined Contributions”), submitted to the UNFCCC. This approach is particularly relevant for investors who want to assess their alignment with climate targets (e.g. 2°C targets), and the underlying risks resulting from exposure to countries presenting a misalignment with these targets. >more

ANATOMY OF A LIQUIDITY CRISIS: CORPORATE BONDS IN THE COVID-19 CRISIS
Maureen O'Hara, and Xing (Alex) Zhou
2020
We examine the microstructure of liquidity provision in the COVID-19 corporate bond liquidity crisis. During the two weeks leading to Fed interventions, transaction costs soared, trade-size pricing inverted, and dealers, in particular non-primary dealers, shifted from buying to selling, causing dealers’ inventories to plummet. Liquidity provisions in electronic customer-to-customer trading increased, though at prohibitively high costs. By improving dealer funding conditions and providing a liquidity backstop, the Primary Dealer Credit Facility (PDCF) and the Secondary Market Corporate Credit Facility (SMCCF) calmed dealers and stabilized trading conditions. Most of the impact of SMCCF on bond liquidity seems to have materialized following its announcement. We argue that the Federal Reserve’s actions reflect a new role as market maker of last resort. >more

DOES TARGET FIRM INSIDER TRADING SIGNAL THE TARGET’S SYNERGY POTENTIAL IN MERGERS AND ACQUISITIONS?
Inho Suk, and Mengmeng Wang
2020
We find that the acquirer’s (1) abnormal returns at merger and acquisition (M&A) announcements and (2) long-term abnormal returns after acquisitions increase with target firm insiders’ net purchase ratios. Further, acquisition synergies, measured as the (1) acquirer-target combined cumulative abnormal returns at M&A announcements and (2) changes in three-year operating performance after acquisitions, increase with target insider net purchase ratios. Notwithstanding, targets with higher insider net purchase ratios receive higher takeover premiums. Overall, our findings suggest that, even under the “Short Swing rule,” target insider trading prior to the M&A announcement serves as a credible signal for acquisition outcomes. >more