Finance Knuggets

Jun 12, 2024

I recently came across some interesting financial news, including reports of potential bids for a company controlling Paramount and the UK’s expected approval of a major listing regime overhaul. Additionally, there is a trend of bond investors showing a willingness to pay higher fees for active fund managers, as well as GM’s approval of a $6 billion buyback due to growth in its EV business. Investors are also being drawn back to frontier emerging markets with high yields, and the White House is preparing to tap a derivatives regulator to oversee the FDIC. In other news, a former Allianz fund manager has pleaded guilty to defrauding investors, and there is a US bankruptcy scandal playing out in a Texas border town. Lastly, Moelis has placed a banker on leave as it investigates a New York scuffle.

The news also covered the concept of tax receivable agreements (TRAs) and how they can create conflicts in the market. It seems that public markets undervalue tax assets, leading private equity firms to take advantage of tax deductions and credits when running a company. However, when they try to take the company public, public investors don’t always value these tax benefits as much, leading to conflicts and agreements on how to handle these benefits.

I also learned about GameStop, which has been in the news for its stock price surge. The company has taken advantage of its increased valuation to sell shares and raise around $2 billion. There’s speculation about what the company will do with this cash, with the possibility of a stock buyback being discussed.

Additionally, there’s a case involving a startup called Joonko, where the founder is facing charges related to fraudulent practices, including forging bank statements and purchase orders. This case raises questions about the level of scrutiny and regulation in private markets, as startups raise significant amounts of capital from both institutions and individuals.

Finally, I heard about Edgar Bronfman’s potential bid for a company controlling Paramount, as well as the UK’s approval of a major acquisition deal. These developments highlight the ongoing activity and movement in the financial and corporate landscape.

Stay Well!