NEWSLETTER of October 21, 2022

The following content has been added at finexpert:

We updated the capital market data

(Multiples, Betas and Returns) as to October 15, 2022 >more

BCG
GLOBAL RETAIL BANKING 2022: SENSE AND SUSTAINABILITY
Retail banks with their eye on the future should consider two critical questions. Over the next few years, what will your customers want beyond the standard financial products and services? And how can you align your business goals with meeting those needs—before competitors beat you to it? >more

Kroll
INDUSTRY MULTIPLES IN EUROPE – Q2 2022
We are pleased to launch the third edition of our Industry Multiples in Europe quarterly report. This report provides valuable insights into trading multiples for various key industries in Europe as of June 30, 2022. Our analysis uses constituents of the STOXX® Europe Total Market Index (“STOXX Europe TMI”), which covers about 95% of the free float in Europe. >more

Lazard
FINANCIAL SPONSOR SECONDARY MARKET FIRST HALF REVIEW 2022
Despite increased global macroeconomic uncertainty, secondary market growth continued in the first half of 2022, with GP-led demand remaining robust and LP-led activity, most notably from the U.S., seeing a meaningful resurgence over the period. Nearly half of buyers deployed over fifty percent of their GP-led capital at or above NAV during the first half of 2022. Lazard’s survey suggests 2022 secondary volumes will finish the year around nine percent below 2021 volumes, with the second half of the year being slower than the blockbuster final quarters experienced in 2021. >more

KPMG
KPMG SURVEY ON SUSTAINABILITY REPORTING
The world's 250 largest companies ("G250") almost all report on sustainability in some form, with 96 percent of this group reporting on sustainability or ESG issues. This is shown by the 12th edition of the "KPMG Survey on Sustainability Reporting," for which the reporting of the 100 companies with the highest sales in each of 58 countries and jurisdictions was evaluated - including the 250 largest in the world. Reporting by the so-called N100 (the top 100 companies in each country or jurisdiction surveyed) has also steadily increased: Ten years ago, about two-thirds of the N100 group of companies submitted sustainability reports. Today, that figure is 79 percent. >more

CREDENTIALS MATTER, BUT ONLY FOR MEN: EVIDENCE FROM THE S&P 500
Peter Cziraki, and Adriana Robertson
2022
We study gender differences in the value of credentials in managerial labor markets. We use within-firm variation in S&P 500 status for marginal firms “just included” on the index and managers who joined a marginal firm before its addition to the index to obtain variation in S&P 500 experience. We then difference out any unobservables that affect both women and men within the same firm-year. Men with experience at an S&P 500 firm obtain more subsequent independent directorships and executive roles at other S&P 500 firms, but not at non-S&P 500 firms. The increase is 12-42% relative to the average. Strikingly, we observe no such relationship for women. Our results suggest that one obstacle women face in the managerial labor market is that they receive less credit than men for similar credentials. >more

CORPORATE BOND COMPLEXITY
Gi H. Kim, and Massimo Massa
2022
We study how a firm’s bond structure affects the pricing of its bonds and its base of bond investors. We define bond complexity as the tangle of contractual terms of all outstanding bonds of a firm, and find that it increases bond yield spreads. Specifically, a 1-standard deviation higher complexity is related to about 17 bps of higher yield spreads. To put this into context, a one-notch downgrade in credit rating in the same regression is estimated to cause a 62-bp increase in bond yields. The pricing effect of complexity is more pronounced during uncertain times. We also show that complexity induces a clientele effect, i.e., complex bonds are held mostly by informed investors or yield-seeking investors. Moreover, complex bonds tend to be subject to higher investor disagreement. Our results suggest that complexity makes it difficult to gather and process information on a bond’s true value, and creates uncertainty about the overall degree of property rights of bond investors. >more