What we’re reading (12/29)
“Hedge Funds Bet Against Market Pessimism On US Economic Outlook” (Financial Times). “[T]raders and strategists say that some hedge funds are wagering that the yield curve will not flatten much more. Instead, they are once again betting that yields on long-term US government bonds will eventually rise, and rise more than yields on shorter-term debt.”
“IPOs Had A Record 2021. Now They Are Selling Off Like Crazy.” (Wall Street Journal). “Looming behind a record-breaking run for IPOs in 2021 is a darker truth: After a selloff in high-growth stocks during the waning days of the year, two-thirds of the companies that went public in the U.S. this year are now trading below their IPO prices.”
“The Inside Story Of How ETFs Weathered The March 2020 Storm” (Financial Times). “At the New York Stock Exchange, level 1 circuit breakers, triggered when there is a 7 per cent decline in the S&P 500, activated four times in eight trading days between March 9 and March 18, halting trading for 15 minutes each time. Douglas Yones, head of exchange traded products at NYSE, recalls a huge effort to ensure everything ran smoothly and to ensure participants were ready for the vast trading volume that would hit the markets as soon as the circuit breakers came off.”
“What’s Behind Value And Growth’s Odd Behavior Last Month? Confusion And Mixed Signals.” (Institutional Investor). “‘It’s not often that we see most value, growth, and quality sub-factors all outperform the markets, but in November they did just that,’ according to Investment Metrics.”
“Taxi Medallion Lender Bought Glowing News Stories To Pump Up Its Stock Price, SEC Alleges” (CNN Business). “According to a complaint filed on Wednesday in Manhattan federal court, Medallion [Financial] and COO Andrew Murstein paid a California media strategist to place positive stories about Medallion on various websites and create fake identities to make the opinion pieces appear credible to investors.”
