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Capital Markets Market Trends Macroeconomic News

Debt: strong M&A and LBO activity to drive market forward despite looming rate-hikes

This is the second article in a series of three covering the outlook for capital markets in 2022. ECM were covered in the previous article. Look out for private equity and private credit next time, following on from today’s DCM overview. Moving into March, it’s already clear that staggering inflation […]

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Capital Markets

Ferrexpo: “Be greedy when others are fearful”

Disclaimer: this article was written for the 2021 CIBS Article Competition weeks prior to its publishing date and should not be taken as financial advice. Ferrexpo originated as a Soviet iron mining operation, but nowadays is listed on the LSE. It specialises in producing iron pellets, a relatively environmentally friendly […]

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Capital Markets Market Trends

Equity: IPO pipeline makes out for yet another strong year.

This is the first article in a series of three covering the outlook for capital markets in 2022. The sectors covered will be DCM, private capital markets, and – in this article – ECM. Equity markets in the last year have shown remarkable recovery from 2020. The S&P 500 grew […]

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Capital Markets

The Transition away from LIBOR: Old Habits die hard

The London Inter-Bank Offered Rate (Libor) is simply put, the global benchmark interest rate for borrowing costs between banks. However, despite being so simple in definition, Libor has had a truly scandalous existence, with the consequences of the financial crisis of 2008 having exposed Libor for being extremely un-robust. In […]

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M&A Deals Capital Markets

The CVC La Liga Deal: David vs Two Goliaths

Private Equity is back in the news again, and more specifically back in the sporting news. Throughout the past COVID-19-stricken year, PE firms have made multiple inroads into some of the largest sporting markets in Europe, with the Spanish top-flight football division of La Liga being the latest in a […]

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Capital Markets Market Trends

A Green Wave: Surge in Green Debt Issuance in September

September saw record-high green bond issuance as both sovereigns and corporates raised over US$40bn in debt capital markets for sustainable projects. This makes September the strongest month for green bond issuance in a year that has seen record-breaking issuances in every month so far. Green bonds are a type of […]

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M&A Deals Capital Markets

Trading platform eToro to go public through SPAC merger

Online broker eToro has agreed to go public at a $10.4bn valuation by merging with Fintech Acquisition Corp V, a special purpose acquisition company (SPAC) set up by banking veteran Betsy Cohen, in one of the largest SPAC deals so far this year. The Israeli stockbroking and spread betting platform […]

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Capital Markets

Coupang: Korea’s Own Amazon

Often referred to as the “Korean” Amazon, South Korean e-commerce retailer Coupang saw its share price pop — peaking at $69 a share, up 84% — after originally listing at $35/share on the NYSE last Thursday. With its IPO, Coupang raised $4.6bn in an enlarged offering after raising its share […]

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Capital Markets

Time for an overhaul of the London listing rules?

Alongside the Budget announcement on March 3rd, Rishi Sunak published the findings of a 5-month independent review into the UK public listing regime, headed by ex-financial services commissioner for the EU, Jonathan Hill. The review has called for an overhaul of the UK’s listing rules to enable London to compete […]

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Capital Markets Macroeconomic News

Supreme Court rules against Uber in landmark employment case

On Friday February 19th, following a lengthy legal fight, Uber lost a momentous battle at the Supreme Court in one of the most significant employment cases in recent decades. The UK’s highest court ruled against the firm, concluding that its drivers should be classed as workers rather than independent third-party […]

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Capital Markets

Asda takeover: Shopping for debt

In October 2020, billionaire brothers Mohsin and Zuber Issa, owners of EG Group, together with TDR Capital, announced the purchase of a majority stake in Asda, the UK’s third largest supermarket, that valued the company at £6.8bn. Rishi Sunak was quick to praise the buyers for “returning ASDA to majority […]

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Capital Markets Market Trends

Chinese Capital: Domestic vs. Foreign Property Markets

China’s Property Bubble: Will it Stabilise or Burst? Long-sustained housing investment has been consistently observed in China over the last decade, which has prompted both fear and trepidation amongst economists, analysts and governments globally. The signs of overbuilding are apparent. The debt levels are high. At the peak of the […]

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M&A Deals Capital Markets

Fertitta Entertainments to go public through SPAC merger

Billionaire Tilman Fertitta is taking his restaurant and casino empire public by merging with Fast Acquisition Corp, a special purpose acquisition company (SPAC) that raised $200m in its IPO in August 2020, taking advantage of recent investor enthusiasm for SPAC deals. After a difficult period for the company due to […]

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Capital Markets

Bumble IPO: Worth the Buzz?

Matchmaking is a lucrative business. On January 15th 2021, Bumble — the women-centric dating app — filed for its initial public offering (IPO). This filing is set to be yet another successful listing in the booming US consumer tech-led IPO market. Despite Bumble’s niche user base and growing popularity within […]

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Capital Markets

Private equity: Sport’s biggest fan

Around the world, sports organising bodies, teams, and leagues have been hugely impacted financially by the pandemic, suspended for a period of time and deprived of vital ticket revenues. In 2020, it’s estimated that the three big US sports leagues (NBA, NFL, MLB) lost $13bn in revenue, the English Premier […]

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Capital Markets Macroeconomic News

Biden(omics): a new chapter for the US markets

With the inauguration of the 46th US President on Wednesday January 20th, a new page turned for the US economy. Stocks opened higher on Wall Street ahead of the inauguration ceremony. The S&P 500 (^GSPC) was up 1% shortly after the open, while the Dow Jones Index (^DJI) was up […]

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Capital Markets

Origin Markets: An Hour With Raja Palaniappan

A fortnight ago, I had the pleasure of speaking to Raja Palaniappan, CEO of Origin Markets. Origin Markets is one of the hottest fintech start-ups operating out of London, the fintech capital of the world. The hour spent with Raja provided a unique insight as to his inspiration behind the […]

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Capital Markets

Roblox joins end-of-year rush to go public

Online gaming platform Roblox filed to go public last week, joining a host of other technology companies looking to take advantage of the surging stock market conditions, particularly in recent weeks, with higher investor optimism being helped along by good news about virus vaccine trials. Roblox’s public debut will further […]

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Capital Markets Market Trends

Investor Appetite: DoorDash fills consumer’s hunger, will its IPO fill investors’ hunger too?

DoorDash, America’s biggest food-delivery company, is due to be listed on the New York Stock Exchange under the symbol “DASH” next month, aiming to be valued at more than $20bn in the IPO and begin trading in December. Its financial documents filed on November 13th reveal it booked orders worth […]

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Capital Markets

The end of Ma: how the biggest IPO went bust

Just a few weeks ago, we were expecting Ant Group to launch the biggest IPO in history with a value of $37bn. In a dramatic turn of events however, the Chinese government imposed a swathe of new regulations aimed at preventing the IPO from taking place just the night before. […]

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Capital Markets Equity Research

Rolling in the deep

With the COVID-19 pandemic severely disrupting the travel industry, aero-engine giant Rolls-Royce is experiencing a period unlike any other in its long history. In order to combat the cash flow issues that are being faced by many across the industry, and the economy for that matter, Rolls-Royce have taken steps […]

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Capital Markets Market Trends

Fallen Angels: Heaven or Hell?

Much like the angels cast out of heaven according to Judeo-Christian doctrine, fallen angels are high-yield corporate bonds that, at the time of issue, were deemed to be investment grade, but have subsequently been downgraded to sub-investment grade. Considering the current low interest rate environment, and since high-yield bond spreads […]

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Capital Markets Market Trends

Direct listings: Sidestepping the traditional IPO

Project management software provider Asana and data analytics and consultancy firm Palantir directly listed their shares on the NYSE on September 30th, bypassing the traditional IPO method. By excluding underwriters, (historically) selling pre-existing shares and thus raising no new capital, direct listings in the past have been best suited to […]

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M&A Deals Capital Markets

Gymshark: the UK’s latest Unicorn, what’s in its £1bn Valuation?

This August marked a significant landmark for the UK’s fastest-growing affordable sportswear brand Gymshark, receiving a valuation of over £1bn for the first time — a significant milestone which catapults Gymshark into joining just less than 25 British companies with “Unicorn” status. Being very much a millennial-targeted brand, Gymshark is […]