What we’re reading (11/20)
“Top Fed Official Opens Door To Faster ‘Taper’ Of Bond-Buying Programme” (Financial Times). “The vice-chair of the US Federal Reserve on Friday opened the door to a faster withdrawal of its massive bond-buying programme, suggesting the central bank could take earlier-than-expected action to tame inflation. Richard Clarida said the Federal Open Market Committee could consider discussing the pace of the planned ‘taper’ at its upcoming policy meeting in December.”
“IPOs Keep Jumping Higher. How Long Will The Ride Last?” (Wall Street Journal). “The number of publicly listed companies in the U.S. rose above 4,000 for the first time in more than a decade, according to the Center for Research in Security Prices LLC. The reasons ranged from a surge of cash provided by Washington, D.C., to a search for new and bigger returns as interest rates hovered near zero. Startups that desperately needed cash added more fuel to the frenzy, as did newly popular ‘blank-check’ companies whose only purpose was to acquire a private target and take it public.”
“Has Anyone Considered That Maybe We’re Not In A Stock Bubble?” (Dealbreaker). “Are we in a stock market bubble? Maybe. Or maybe we’re just in an economy where businesses are doing well because Americans sitting on a large pile of cash they’ve accumulated over the course of the pandemic are now doing their darndest to spend it. My money’s on the latter.”
“Hostility Towards Private Equity’s Push Into Property Is Misguided” (The Economist). “This injection of capital should be welcomed, not scorned. The investors want to make money, naturally, but they see a gap in the market that needs filling and they are doing something about it. Demand for rental housing has never been higher. In Britain less than one in ten homes were rented in the mid-1990s. The share today is closer to one in five. A third of households in America are rented. Falling home ownership rates across the rich world mean that decent quality housing in the private rented market is more sought-after than ever. Yet tenancies are insecure and the supply of rental homes has failed to keep up with demand. A number of countries face chronic shortages.”
“Young Wall Streeters Are Pumping Their Bonus Checks Into Crypto. Here's An Inside Look At How They're Making Trades — And What Their Firms’ Compliance Departments Have To Say About It.” (Insider). “Wall Street firms generally have detailed policies around what employees are allowed to invest in personally to prevent insider trading and conflicts of interest. And while these policies vary by firm and division — traders, dealmakers, and others with client-facing relationships are subject to more restrictions than retail bankers, for instance — most securities traded via brokerage accounts require clearance from compliance.”
