NEWSLETTER of May 1, 2020

The following content has been added at finexpert:

BCG

ASSET MANAGEMENT IN GERMANY – THE PROBLEM GOES DEEPER THAN THE CRISIS

The COVID-19 crisis will hurt Asset Managers, but even in our worst case assumptions, it does not seem to pose an existential threat to most Fund Managers. But maybe, the real threat to the industry is not the crisis – Rather, the past 10 years of strong market growth have overcompensated most pressure points, and this lack of a “burning platform” has led to significant underinvestment in innovation and competitiveness. The current crisis may even amplify this state of underinvestment as most firms are cutting investments rapidly. >more

Andersch

COVID-19: INDIVIDUELLE AUSWIRKUNGEN AUF DEUTSCHE SCHLÜSSELINDUSTRIEN

This publication reviews consequences of the C-19 pandemic for German key industries. For each sector, it discusses how supply chains and sales are affected as well as interdependencies with other branches and macroeconomic developments. The outcome is a detailed projection of how soon sector recovery is possible contingent on several economic scenarios. >more

Oliver Wyman

VERSICHERUNG 2030: VORWÄRTS BEI GEGENWIND

Currently, the insurance industry is much less affected by COVID19 than industries such as tourism or the automotive industry. However, the framework conditions here will also change fundamentally by 2030, far beyond the topics currently under discussion. Insurance companies will have to find answers to almost inevitable developments and also to uncertain threat scenarios. This is shown in the study "Insurance 2030" by Oliver Wyman. >more

Lazard

QUARTERLY REVIEW OF SHAREHOLDER ACTIVISM - Q1 2020

Prior to the public health crisis, global activism activity in 2020 was off to a strong start with 42 campaigns initiated at 42 companies and total capital deployed of $13.1bn in January and February. The surge in January and February was driven by Europe, which experienced record activity in terms of campaign initiations and capital deployed. Local activists are increasingly initiating campaigns in Europe, accounting for 71% of activity in Q1 2020, compared with 58% in 2019. >more

UBS

INVESTOR SENTIMENT Q1 2020

UBS surveyed 2,928 investors and 1,180 business owners with at least $1M in investable assets (for investors) or at least $1M in annual revenue and at least one employee other than themselves (for business owners), from April 1 – 20, 2020. The global sample was split across 14 markets: Argentina, Brazil, China, France, Germany, Hong Kong, Italy, Japan, Mexico, Singapore, Switzerland, the UAE, the UK and the US. >more

GLOBAL RISKS IN THE CURRENCY MARKET

George Panayotov
2019
Global risks allow theoretical models of the currency market to explain currency risk premia. Yet, there is no consensus in the empirical literature on which factors can represent global risks. We develop an asset pricing test for global risk factors that relies on the key assumption of a distinct U.S. global risk exposure. Using numeraire-invariant test assets that are particularly suitable for studying global risks, we apply the test on a large set of factors used in recent studies of currency risk. We find that only equity market risk can represent a global risk in the currency market. >more

DO INSTITUTIONAL INVESTORS PLAY HIDE-AND-SELL IN THE IPO AFTERMARKET?

Tamara Nefedova, and Giuseppe Pratobevera
2018
We document a robust buy/sell asymmetry in the choice of the broker in the IPO aftermarket: institutional investors are less likely to sell than buy through the lead underwriters. Consistent with investors hiding their sell trades, the asymmetry is the strongest in cold IPOs and it is limited exclusively to the first month after the issue. Contrary to the conventional view, the intention to flip IPO allocations is not an important motive for hiding sell trades from the lead underwriters; institutions that sell shares through non-lead brokers tend to have bought them through the lead underwriters in the IPO aftermarket, consistent with institutions breaking their laddering agreements. We find that hiding sell trades is an effective strategy to circumvent underwriters' monitoring mechanisms: the more institutions hide their sell trades, the less they are penalized in subsequent IPO allocations. >more