Pia Schaefer

An excellent course with INSEAD Executive Education to support professional development.

31

1 Comment

Join our webcast with chief strategist Luca Paolini on Tuesday 3rd December for our return forecasts for the next 12 months across asset classes as well as the implications of Trumponomics for markets. We'll also cover: -Why the UK could be the growth wildcard and outperform its European counterparts -Why we expect a modest recovery in the Euro-area economy next year -How conditions are becoming supportive for risk assets globally Register here: https://lnkd.in/dujXsWY9

3

Really enjoyed being on the panel at Private Equity Insights conference in London last week discussing best sectors for Private Equity going forward. PE investments are long term and it’s important for PE to invest in sectors with long term positive trends. Operational improvement is key for PE managers to deliver best returns and hence specialization is a key trend we can observe in the industry. In our selection of managers, Cubera Private Equity focuses on their sector expertise and ability to improve businesses.   #privateequity

105

1 Comment

Margin loans and off-balance sheet financing: over the past two years, we have highlighted the phenomenon of leverage on leverage on leverage...and occasionally on leverage. In the Financial Times, Robert Smith explores Altice Group's use of margin loans and collar financing to finance their position in BT Group. We understand that Mr Drahi has previously also used margin loans on his stakes in Altice Europe/Altice USA. There is absolutely nothing inherently wrong with margin loans or financing that creates high leverage. However, it does introduce additional risks to all investors. For example, during COVID, a margin loan on Aroundtown was liquidated, resulting in the stock falling ~ 40% in a few hours. There was no public disclosure, and the broader market was unaware of why the volume surged and the stock dropped precipitously. Furthermore, investors are often unaware of off-balance sheet financing, which can obscure the true level of leverage. Margin loans have been used by some of the largest majority owners globally including SoftBank Group Corp. and Tesla. However, for smaller capitalisation companies, the effects of a default on the margin loan can be significantly larger. Our main point is that these loans introduce further leverage and risk into a company's capital structure for all investors. #leverage #derivatives #leveragefinance

26

1 Comment

Nice article from Craig Coben that summarises some of the positive signs we've been seeing in the UK equity markets recently - outperformance vs. US/Europe, strong broader ECM issuance, the restart of IPO issuance and an increasing pipeline!

32

1 Comment

I was delighted to host a media breakfast today with journalists, where we discussed how UK investors are navigating changes within the global economy and their growing confidence in returning to equities. In a world where change is constant, we are excited to offer UK investors a global equity fund designed to thrive on transformational shifts in the global economy. Time-tested over 50+ years, our flagship global equity strategy is now available as a UK-domiciled OEIC (open-ended investment company). Find out how Capital Group could help your investments thrive on change. https://lnkd.in/dzD-pY8z Financial promotion. Investment involves risk. #CapitalGroup #investing #equities

159

3 Comments

https://lnkd.in/dmVJGGBg The Times 3i Group plc #ceo SIMON BORROWS "funds that acquired companies at lofty valuations in the last deal boom face challenges in today’s tougher environment" “There is a very big bifurcation between winners and losers,” “Once the marks and the performance of those things they bought at the top of the market in 2021 and 2022 become apparent, I think they’re going to find it harder to raise new funds. A lot of people invested like crazy in those years and they were expensive years with the benefit of hindsight .#valuations #PE #privateequity #dealmaking #equity #mauritius #africa #india #uk Kick Advisory Services

8

Thank you Francine Lacqua for having me on The Pulse. I really enjoyed our discussion and we covered a broad range of topics: 🔹the current strength of technicals in global leveraged markets with robust returns in the asset class yoy; 🔹the revival of the European IPO market with most recently priced sizeable deals trading well; 🔹political uncertainty as a vector of market volatility; and 🔹banks, public and private institutional markets joining forces to fund the significant capex needs driven by the 3Ds (decarbonation, digitalisation and deglobalisation)

152

What drives the recent surge in AT1 issuance among European banks? In 2024, €11.6bn gross issuance hints at underlying trends. While recent calls reflect strategic shifts, the muted net supply echoes broader regulatory capital optimization. This nuanced landscape suggests a supportive environment for AT1 valuations, potentially leading to a scarcity premium. My colleauges from TwentyFour Asset Management LLP delve deeper into the implications for professional investors navigating these dynamic markets⬇️ #AT1Issuance #EuropeanBanks #Investing #MarketTrends https://bit.ly/3ymSt8p

10

A bit shocking to learn from the UK regulator that banks do not run stress-testing analysis on their Private Equity / Leveraged Finance exposures. Especially if one remembers each bank lost hundreds of millions or for some a billion + due to these exposures in 2008 (TXU, LyondellBasel, Boots...). #leveragedfinance #banks #stresstesting #privateequity #bridgeloans

10

Great article about the current momentum and challenges in transition finance. Thanks Daniel Hanna If done right, banks can hugely benefit from transition finance - beginning of May, we will publish our new market analyses. Stay tuned

12

The march is on: Canada, the European Central Bank, Sweden, and Switzerland have cut base rates, with more cuts expected by year-end. Despite this, high base rates are unlikely to see the 'beginning of the end' soon. with inflation posing challenges for borrowers. The U.S. Federal Reserve's cautious approach may hinder aggressive cuts globally, maintaining a 'slightly less high for longer' perspective for now. Election results globally, including in the European Union, France, India, and Mexico, are bringing surprises. Nationalistic policies, such as in-sourcing and lower immigration, may not aid in reducing inflation. Yet, global equity markets have soared to record highs, largely unfazed. Simultaneously, M&A activity is gaining momentum after a decade-long lull, primarily led by the U.S. and E.U., with Asia starting to catch up.

12

💥[Breaking News] We are delighted to announce 𝘁𝗵𝗲 𝗰𝗿𝗲𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗼𝘂𝗿 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗔𝘀𝘀𝗲𝘁𝘀 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗹𝗶𝗻𝗲. This business line will enable CACEIS to position itself as the benchmark for digital asset servicing in Europe, permitting clients to benefit from our in-house digital expertise. 🚀𝗢𝘂𝗿 𝗼𝗳𝗳𝗲𝗿𝗶𝗻𝗴 𝗶𝗻𝗰𝗹𝘂𝗱𝗲𝘀 𝗱𝗶𝗴𝗶𝘁𝗮𝗹 𝗮𝘀𝘀𝗲𝘁 𝗰𝘂𝘀𝘁𝗼𝗱𝘆 𝗮𝗻𝗱 𝗰𝗼𝘃𝗲𝗿𝘀 𝘁𝗵𝗲 𝗲𝗻𝘁𝗶𝗿𝗲 𝘃𝗮𝗹𝘂𝗲 𝗰𝗵𝗮𝗶𝗻, 𝗳𝗿𝗼𝗺 𝗶𝘀𝘀𝘂𝗶𝗻𝗴 𝘁𝗼𝗸𝗲𝗻𝗶𝘀𝗲𝗱 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗶𝗻𝘀𝘁𝗿𝘂𝗺𝗲𝗻𝘁𝘀 𝘁𝗼 𝘁𝗵𝗲 𝗱𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻 𝗼𝗳 𝘁𝗼𝗸𝗲𝗻𝗶𝘀𝗲𝗱 𝗳𝘂𝗻𝗱 𝘀𝗵𝗮𝗿𝗲𝘀. Read more➡️ https://ow.ly/Zksz30sCAcn #AssetServicing #AssetManagement #DigitalAssets #Tokenisation

30

1 Comment

Prehedging (both contingents, outrights and others) is a hot topic currently. Benoit explains the drivers - market volatility and hence costs are lower. On the deal side - time to close and also risks to close (financing, and other c/ps) have increased. Both of these together have driven prehedging. As always, please reach out to your favourite risk advisor to discuss further

18

1 Comment