Finance

Fresh Pick of the Day, August 12, 2014: “Fund managers – Assets or liabilities? ” from The Economist Magazine

- From the Economist magazine – “Regulators worry that the asset-management industry may spawn the next financial crisis. Regulators are stuck between a rock and a hard place. It is their job to anticipate future crises, which may not resemble those of the past. But that logic requires them to regulate parts of the industry which have not, in the past, been the source of problems. Another concern is that risk may be a game of whack-a-mole: hammer it down in one place and it pops up somewhere else. Some of the problems regulators fret about, such as the illiquidity of the corporate-bond market, are the result of regulations imposed since the crisis. If they now bear down on funds or fund managers, they may simply create another problem somewhere else.”

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Fresh Pick of the Day, August 6, 2014: “Financial analysts: Are they useful after all?”

From Knowledge@HEC – “The results of the study confirm that analysts generate important information that is used by market players, which impacts the cost of capital for firms and, consequently, the investments they agree to and their financing. In fact, after the loss of an analyst, companies reduce their investments by on average 2.4% of the total value of their assets. The three investment components that the researchers focused on (capital, research and development, and acquisitions) fall significantly in both the year prior to and following the loss of an analyst in comparison to similar firms that do no lose an analyst. Firms also considerably reduce their financing (on average by 2.6 % of their assets) when they lose an analyst. Amongst the three variables that the researchers were interested in (changes in long and short-term debts and equity issuance), only short-term debt does not decrease significantly, because it is less sensitive to uncertainty and, consequently, to analyst coverage. The greater the coverage, the more information there is available for investors, thus the lower the uncertainty regarding.”

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Fresh Pick of the Day, July 30, 2014: “Is it profitable to invest in wine?”

From Knowledge@HEC Paris – “A collection of fine red wines may be an asset for gourmets, but it is also an interesting financial asset, which appreciates over time. Unique research based on the study of prices of Bordeaux premiers crus over the course of the 20th century shows that wine appreciates beyond its drinking value to deliver high returns, even outperforming some other traditional investments.”

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Fresh Pick of the Day, July 9, 2014: “The World’s Strongest Banks – from Bloomberg Markets

From Bloomberg Markets – “Hang Seng is the world’s strongest bank, according to the annual ranking by Bloomberg Markets magazine. Hang Seng jumps to the top of the list after ranking No. 10 last year.”

 

 

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Fresh Pick of the Day, July 7, 2014: “Private Equity in Emerging Markets Is Being Rebalanced”

From Knowledge@Wharton – the emerging market share of total global private equity (PE) funds raised dropped from about 20% of the total in 2012 to 12% in 2013. Many analysts say this likely reflects a bit of slowing in economic growth in those markets overall, despite some countries that are bucking that trend individually

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Fresh Pick of the Day, June 30, 2014: “Demography, growth and inequality – Age invaders”

From the Economist Magazine – A generation of old people is about to change the global economy. They will not all do so in the same way

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Fresh Pick of the Day, June 24, 2014: “Getting the Risk-Reward Ratio Right in Emerging Markets” from CFO Magazine

From CFO Magazine – “For every company that thrives in a foreign market, probably five companies stumble.  The complexities of entering a foreign market can result in many strategic mistakes and missteps. Even businesses that eventually “win” in a geographic region can teeter on the edge for years. Wal-Mart, for example, stormed Japan in the late 1990s, hoping to export its supply chain practices and “everyday low price” model to a distinctly different consumer shopping culture. The giant discounter struggled until recently.”

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Fresh Pick of the Day, June 20, 2014: “Five facts about shadow banking” from FT.com

From FT.com – Short video about shadow banking

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