NEWSLETTER of June 7, 2024

The following content has been added at finexpert:

M&G Investments
HIGH YIELD STRUCTURED CREDIT: RIPE CONDITIONS WITHIN THE EUROPEAN MARKET
Today’s structured credit market is characterised by a diverse range of asset types and instruments. These can be accessed through both public and private markets. The array of options include asset-backed securities (ABS), collateralised loan obligations as well as Significant Risk Transfer (SRT) transactions and other forms of private asset-backed finance such as specialty finance – two key investment areas emerging from the wake of the Global Financial Crisis (GFC). Several long-term structural themes have propelled these five verticals’ forwards in recent years. These themes look set to shape their development and evolution ahead as the asset class enters its next phase of growth. >more

BlackRock
NOT YOUR TYPICAL RATE CUTTING CYCLE
Major central banks are gearing up to cut interest rates. But like their hiking cycles, this cutting cycle will be far from typical, we think. Why? The ECB is set to start easing before the Fed, but a wider policy gap between them will be temporary, in our view, even if a Fed hike is not impossible. Central banks are eyeing rate cuts with inflation still above 2% and growth strong or improving. We see them keeping rates high for longer. We prefer U.S. stocks over Europe because of the AI theme. >more

KfW Research
KFW-INTERNATIONALISIERUNGSBERICHT 2024
Despite the long-term effects of the coronavirus crisis and the impact of Russia's attack on Ukraine, SMEs' foreign sales reached a record high in 2022 (+14% or +8% adjusted for price). Around one in eight euros of the total turnover of SMEs was generated abroad in 2022. Almost one in four SMEs were active across borders, the highest figure for 13 years. The majority of those active abroad rely on exports to develop foreign markets. Only a few companies cross the threshold into direct investment (2019-2022: 1.7%). While 2022 was still characterized by a good overall economic situation, the global economic environment deteriorated by 2023 at the latest. The global economy and global trade are still feeling the effects of the crisis. However, there are already signs of improvement and optimism. >more

Institut für Mittelstandsforschung Bonn
DIE UNTERNEHMERISCHE AKZEPTANZ VON KLIMASCHUTZREGULIERUNG
There is a general consensus among SMEs in Germany that ecological transformation is necessary. However, there is currently a risk that too much detail and an excessive certification obligation could lead to evasive strategies. Family entrepreneurs have a positive attitude towards the regulatory goal of climate protection - not least because they see themselves as having a responsibility towards their home region and their successors due to their regional roots. In addition, intrinsic motives such as the personal conviction of managers and extrinsic motives such as customer expectations also play a role. >more

THE GREEN TRANSITION: EVIDENCE FROM CORPORATE GREEN REVENUES
Johannes Klausmann, Philipp Krueger, and Pedro Matos
2024
Using a novel measure of a firm's green revenues, this paper sizes up the green economy. We shed light on the factors driving global public companies' expansion of business activities in support of the green transition towards a low-carbon and more environmentally sustainable economy. Our analysis shows that the green economy grew at an accelerated pace after the Paris Agreement. Both regulatory initiatives and innovative US firms converting green patents into actual revenues from green products and services have led to this accelerated growth. We also document that a stronger presence of institutional investors prior to the Paris Agreement is associated with higher green revenues afterwards. Finally, we examine the stock returns of firms with high green revenues and find only modest evidence of a green alpha which seems to be concentrated in US stocks in the post-Paris period. >more

RETAIL INVESTORS’ CRYPTOCURRENCY INVESTMENTS
Vesa Pursiainen, and Jan Toczynski
2023
We use transaction data gathered by a large fintech firm to study retail investors’ investments in cryptocurrencies. Crypto investors tend to be male, young, high-income, and risk-seeking -- but less so for later adopters. While crypto adoption has increased substantially, most of the trading activity is attributable to a small share of investors. Most crypto investors make very few investments and never monetize them by withdrawing. Initial return experience is a strong predictor of further crypto investments. Men trade more actively than women, and their trading activity responds more strongly to past returns, as well as to initial return experience. >more