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- 📚 Bank Of England Increases Interest Rate Again! UBS Nears Major Investment Bank Restructuring
📚 Bank Of England Increases Interest Rate Again! UBS Nears Major Investment Bank Restructuring
PLUS: Goldman Sachs’ CEO Bets Big On Asset Management, How To Get Into Sales & Trading + And More
Afzal Hussein
August 07, 2023
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Today’s Riddle: I'm a famous theory from a mathematician's head, used to price options with risk hedged. What am I? (Scroll all the way down for the answer).
Alright, small talk done, let’s dive in!
TODAY’S MENU
Investment Banking: UBS Nears Major Investment Bank Restructuring, Juul Seeks $1Bn In Funding, And Credit Suisse To Cut 80% Of Banking Jobs
Asset Management: Goldman Sachs’ CEO Bets Big On Asset Management, Money Market Funds See Large Inflows, And More
Sales & Trading: Bank Of England Increases Interest Rate 14th Time In A Row, How To Get Into Sales & Trading, And Inflation Expectations
Private Equity: Why PE Is Eyeing Up UK Essential Services, Apollo’s Q2 Earnings Up 75%, German Space Firm OHB To Delist As KKR Takes Stake, And SoftBank Seen Returning To Profit
Venture Capital: Venture-Backed Startups Are Failing At Record Rates, VCs Face Existential Threat, Bootstrapping To $100Mn, And More
Hedge Funds: Many Of The World’s Largest Hedge Funds Face UK Stress Test, And Hedge Fund Billionaire Dan Loeb Laments Victory Of Meme Stocks
Other: UK House Prices Fall For 4th Month, And Lenders Cut Mortgage Rates Despite Bank Of England Rate Rise
INVESTMENT BANKING (GET THE 100-PAGE GUIDE HERE)
UBS Nears Major Investment Bank Restructuring, Juul Seeks $1Bn In Funding, And Credit Suisse To Cut 80% Of Banking Jobs
UBS is set to make sweeping changes to the senior ranks of its investment banking division globally, marking a new milestone in the process of integrating Credit Suisse.
The changes are aimed at producing unified teams following the completion of UBS's emergency takeover of Credit Suisse in June.
ASSET MANAGEMENT (GET THE 71-PAGE GUIDE HERE)
Goldman Sachs’ CEO Bets Big On Asset Management, Money Market Funds See Large Inflows, And More
Goldman faces an inflection point: Boom-or-bust activities like trading or advising on mergers have fallen out of favour with investors.
As a result, the GS CEO, David Solomon, has hitched his fortunes to asset and wealth management after dropping an ill-fated retail banking effort (Marcus).
ARTICLES
SALES & TRADING (GET THE 107-PAGE GUIDE HERE)
Bank Of England Increases Interest Rate 14th Time In A Row, How To Get Into Sales & Trading, And Inflation Expectations
Latest forecasts from the Bank of England say the UK will avoid recession and suggest the government is likely to meet its pledge to halve inflation by the end of the year but interest rates will have to remain higher for longer.
PRIVATE EQUITY (GET THE 127-PAGE GUIDE HERE)
Why PE Is Eyeing Up UK Essential Services, Apollo’s Q2 Earnings Up 75%, German Space Firm OHB To Delist As KKR Takes Stake, And SoftBank Seen Returning To Profit
It’s easy to see why private equity houses are attracted to investment in essential services such as elderly care, fostering and, increasingly, childcare.
These are not luxuries that can be easily dispensed with during economic downturns, such as the one into which Britain may soon be sliding.
WEEKLY RECOMMENDATION
🎬 Too Big To Fail
"Too Big to Fail" is a dramatic film based on Andrew Ross Sorkin's book, depicting the events surrounding the 2008 financial crisis. The movie offers an inside look into the efforts of government officials, financial executives, and regulators as they grapple with the impending collapse of major banks and financial institutions. |
VENTURE CAPITAL
Venture-Backed Startups Are Failing At Record Rates, VCs Face Existential Threat, Bootstrapping To $100Mn, And More
If current trends continue, more VC- or private equity-backed startups will fall into bankruptcy this year than at any point since 2010.
The venture industry needs to shrink to adjust to the new normal, and even the VCs themselves know it. “If you look at the industry as a whole, it's too big,” said one.
HEDGE FUNDS
Hedge Fund Investors Hunt Credit, Lose $6Bn Betting Against Cruises And Hotels, And Hedge Fund Billionaire Laments Victory Of Meme Stocks
Hedge funds have incurred substantial losses, exceeding $6 billion this year, as their bets against cruise lines and hotels proved misguided.
Royal Caribbean and Carnival have emerged as the two entities within the S&P 500 index most targeted by short sellers. However, their remarkable surge in value has defied initial expectations, having more than doubled during the current year.
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ANYTHING AND EVERYTHING ELSE
UK House Prices Fall For 4th Month, And Lenders Cut Mortgage Rates Despite Bank Of England Rate Rise
UK lenders have cut the cost of mortgages, offering hope for the housing market in a week when the Bank of England hiked rates to their highest level in 15 years and house prices fell the most since 2009.
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