NEWSLETTER of March 25, 2022

The following content has been added at finexpert:

PwC
EMISSIONSMARKT DEUTSCHLAND: UNSICHERHEITEN BELASTEN EMISSIONSTÄTIGKEIT
In "Issuance Market Germany," PwC analyzes all new share issues and capital increases on the Frankfurt Stock Exchange on a quarterly basis. In addition, new issues of corporate bonds by German issuers are recorded. The data on capital increases are based on information from Thomson Reuters and include transactions up to and including March 18, 2022. >more

CMS
EUROPEAN M&A STUDY 2022
This year’s Study covers almost 500 share and asset deals on which CMS European offices advised in 2021. This is a record number of deals for one year and reflects the M&A boom in 2021. We observed that normal deal metrics applied in most of those transactions: a retreat from the particularly 'buyer-friendly' approach we found in 2020, and a return to more standard seller and buyer provisions. >more

Baker McKenzie
TRENDS AND SPOTLIGHTS OF THE CHINESE INVESTMENT LANDSCAPE
Baker McKenzie’s eighth annual analysis of Chinese outbound investment trends, conducted in partnership with Rhodium Group, details Mainland China’s movements in the ever-changing global market, driven by investors’ desires for broader market entry, strategic synergy, access to resources and new energy, and expansion of technology and product portfolios. >more

Invesco
2022 ALTERNATIVE OPPORTUNITIES
In our 2022 edition of Alternative Opportunities, we are proud to introduce views on a variety of private asset classes from Invesco Investment Solutions and our partner firms. Within this piece, we present a framework for analyzing across and within alternative markets, utilizing our expertise in this space and the vast dataset available to us. Hopefully, this transparency into our investment process will help inform your investment decisions as we continue to update this document on a quarterly basis. >more

Lazard
SPONSOR-LED SECONDARY MARKET REPORT 2021
With the COVID crisis stabilizing in 2021, secondary market activity soared, with volume estimated to have doubled on estimated 2020 figures and GP-led transactions accounting for 50% of the market. LP-led activity started to recover in the second half of 2021. Continuation fund transactions remained the most common transaction structure in 2021, specifically single-asset continuation funds which accounted for over 50% of the overall GP market volume for the first time. >more

CMS
UPDATE ARBEITSRECHT 03/2022
Digitization is making its way into the world of work at high speed. HR management also has to face many new challenges. Particularly exciting in this context are legal issues surrounding the key technology of "artificial intelligence (AI)". We devote our focus article in the current issue to this topic. Read about where AI can be used in HR and what legal risks exist, particularly in the areas of data protection, the General Equal Treatment Act (AGG) and works constitution law. In our current overview of case law and legislation, we inform you about opportunities to employ Ukrainian refugees in Germany - a topic that is currently moving many companies. >more

EXORBITANT PRIVILEGE? QUANTITATIVE EASING AND THE BOND MARKET SUBSIDY OF PROSPECTIVE FALLEN ANGELS
Viral V. Acharya, Ryan Banerjee, Matteo Crosignani, Tim Eisert, and Renee Spigt
2022
We document capital misallocation in the U.S. investment-grade (IG) corporate bond market, driven by quantitative easing (QE). Prospective fallen angels—risky firms just above the IG rating cutoff—enjoyed subsidized bond financing since 2009, especially when the scale of QE purchases peaked and from IGfocused investors that held more securities purchased in QE programs. The benefitting firms used this privilege to fund risky acquisitions and increase market share, exploiting the sluggish adjustment of credit ratings in downgrading after M&A and adversely affecting competitors' employment and investment. Eventually, these firms suffered more severe downgrades at the onset of the pandemic. >more

TAXING CARRIED INTEREST AS ORDINARY INCOME AND THE POTENTIAL IMPACT ON NEW VENTURE FUND FORMATION
John Manuel Barrios, and Yael V. Hochberg
2021
We explore the potential impact of taxation of carried interest at ordinary income rates on the economic attractiveness of new VC fund formation and its potential impact across US states. Our analysis suggests that changing the taxation regime for carried interest from taxation at (long-term) capital gains rates to ordinary income rates would significantly reduce the attractiveness of forming a new fund for the vast majority of funds in U.S. states other than CA, MA and NY. These funds are predominantly smaller, earlier stage funds, and represent a significant proportion of available VC funding sources outside of the traditional Big 3 VC states. Given the importance of VC funding for U.S. innovation, our findings may serve to inform and aid policymakers in their current deliberations as they consider, design, and implement potential new tax laws that will affect the VC industry. >more