NEWSLETTER of October 10, 2025

The following content has been added at finexpert:

Allianz Research
POWERING AHEAD:GLOBAL WEALTH REPORT 2025
2024 saw another year of solid growth for the global economy – and another bumper year for financial assets of private households, which rose by +8.7%, surpassing the strong growth of the previous year (+8.0%). By the end of 2024, total financial assets had reached a new absolute record of EUR269trn, though at 283% relative to economic activity, this is only at the same level as in 2017 as inflation has “artificially” inflated the denominator. >more

KfW Research
KFW VENTURE CAPITAL-DASHBOARD Q3 2025 
Investment in German start-ups was weaker in the third quarter than in the two quarters of the first half of the year. Overall, German start-ups raised around EUR 1.3 billion in venture capital in Q3 2025. This represents a decline of around 47% compared to the previous quarter. The main reason for this was that Q3 saw only one mega round of EUR 100 million or more, the lowest number of such large financing rounds to date. For the year as a whole, the deal volume at the end of the third quarter stands at a solid EUR 5.3 billion. >more

KfW Research
BETEILIGUNGSINVESTOREN OFFEN FÜR ENGAGEMENTS IN DER SICHERHEITS- UND VERTEIDIGUNGSINDUSTRIE
The security and defence industry (SDI) is now much more in the public eye. In summer 2025, 30% of equity investors stated that they had already invested in SDI companies. Just under half said they would invest if a good opportunity arose. Traditional military sub-sectors of the SDI appear to be less attractive to equity investors. >more

Allianz Research
ECONOMIC OUTLOOK 2025-27: 10 TOP-OF-MIND QUESTIONS, ANSWERED
Who truly bears the cost of the ongoing trade war? Primarily exporters for now, but US consumers will also be hit through higher inflation (up by 0.6pp by mid-2026). While global trade routes have shifted, allowing exporters to mitigate the impact, downside risks remain high as sectorial investigations are ongoing and the trade deal with China is still pending. Export losses could in theory range from -0.3% of GDP (EU) to -1.3% of GDP (Vietnam) compared to a pre-trade war scenario. >more

ARTIFICIAL INTELLIGENCE IN THE BOARDROOM 
Daniel Ferreira, and Jin Li
2025
We analyze how the use of artificial intelligence affects the monitoring and advisory relationship between CEOs and corporate boards. AI can serve as an advisor to CEOs, partially substituting for board advice, and thus reducing CEOs' incentives to share information with directors. In equilibrium, firms respond by reducing board independence to restore information flows. Lower monitoring intensity decreases CEO turnover, making CEOs more entrenched. Lower dismissal risk allows firms to reduce CEO compensation. We show that AI adoption by the board mitigates some of the negative aspects of the CEO's AI use, but cannot restore efficient levels of board monitoring. Our analysis suggests that the adoption of AI in the boardroom may have unintended consequences for corporate governance. >more

RISK-ADJUSTING THE RETURNS TO PRIVATE DEBT FUNDS
Isil Erel, Thomas Flanagan, and Michael S. Weisbach
2025
Private debt funds are the fastest-growing segment of the private capital market. We eval- uate their risk-adjusted returns, applying cash-flow-based methods to form a replicating portfolio that mimics their risk profiles. Accounting for both equity and debt factors, a typical private debt fund produces insignificant abnormal returns to its investors. However, gross-of-fee abnormal returns are positive, and using only debt benchmarks also leads to positive abnormal returns, as funds contain equity risks. The rates at which private debt funds lend appear high enough to offset funds’ fees and risks but do not exceed both fees and investors’ required rates of return. >more