Category: Strategy

The Fed’s Digital Dollar Will Remake The Capital Markets

The Fed’s Digital Dollar Will Remake The Capital Markets

From instant trade settlement, to real-time AML transparency and reporting, the Fed's CBDC / "Digital Dollar" will drive efficiency, enhance transparency and reduce privacy. "We are the Federal Reserve and we are here to help" (translation: run for cover). The Federal Reserve will have rolled out its CBDC - the Digital Dollar - by 2025 … Continue reading The Fed’s Digital Dollar Will Remake The Capital Markets

More Than Tiny Bubbles: Policy-Driven Market Distortions

More Than Tiny Bubbles: Policy-Driven Market Distortions

We highlight some of the bubbles (some call it the "Everything Bubble"), caused by the ultra-loose fiscal and monetary policies that have distorted markets since April 2020. The longer Powell & Company wait to taper and eventually raise interest rates, the more difficult it will be to reel in the price inflation caused by the … Continue reading More Than Tiny Bubbles: Policy-Driven Market Distortions

Automating The IPO Process

Automating The IPO Process

Founded in 2017, Capital Markets Gateway ("CMG") is working to automate the IPO process, an effort that is long overdue. CMG was highlighted in today's WSJ. The firm's platform aggregates data from issuers, underwriters and investors and provides real-time information and analytics to users that otherwise would be aggregated, error checked and tabulated by hand. … Continue reading Automating The IPO Process

Muted Real GDP Provides The Fed With Excuse Not To Taper. Stick To Quality.

Muted Real GDP Provides The Fed With Excuse Not To Taper. Stick To Quality.

The Atlanta Fed's GDPNow estimate of 3.6% real GDP for Q3, down from 3.7% a week earlier provides the Fed with the narrative necessary to not taper MBS asset purchases (currently approximately $40 billion per month), nor Treasury purchases (approximately $80 billion per month). Investors ought to stick to quality names. In the face of … Continue reading Muted Real GDP Provides The Fed With Excuse Not To Taper. Stick To Quality.

Is State Street Lost At Sea?

Is State Street Lost At Sea?

If reports are true State Street has lost its way. If State Street (ticker: STT), CEO Ron O'Hanley truly hired Goldman Sachs to help he and the Board think through corporate strategy the company is toast. Any CEO who trusts his company to outsiders has lost his way. Did State Street truly need Goldman Sachs … Continue reading Is State Street Lost At Sea?

A Win for Intuit. A Loss for Facebook

A Win for Intuit. A Loss for Facebook

Intuit (ticker: INTU), recently announced that it had agreed to acquire Mailchimp, the marketing platform used by small and medium-sized businesses (we are a Mailchimp customer). Intuit is in the business of serving the SMB market. Facebook (ticker: FB), also serves SMBs and made a smart acquisition last year (Kustomer acquisition) to bolster its SMB … Continue reading A Win for Intuit. A Loss for Facebook

The Battery Is Key To The EV

The Battery Is Key To The EV

Our view is that the key to an EV's success is an inexpensive and reliable power source. That power source is of course batteries. Thus, if one tries to gauge who the EV OEMs of tomorrow may be, look no further than the current crop of EV Battery suppliers. For it would be far easier … Continue reading The Battery Is Key To The EV

Apple Continues To Invest In Wallet

Apple Continues To Invest In Wallet

Apple Wallet differentiates vs. other mobile wallets via its state ID and TSA efforts. Yesterday Apple announced that it is working with several states which will roll out the ability for state residents to add their driver’s license or state ID to Wallet on their iPhones and Apple Watches. With digital credit cards and the … Continue reading Apple Continues To Invest In Wallet

A PayPal, Interactive Brokers Transaction

A PayPal, Interactive Brokers Transaction

What could a PayPal, Interactive Brokers transaction look like? With inflated valuations all-stock deals have become more popular. A traditional, all stock acquisition of Interactive Brokers by PayPal (tkr: PYPL), certainly could happen. However, our preference would be for a "NewCo" structure whereby PayPal would own the NewCo business, or at least own a majority … Continue reading A PayPal, Interactive Brokers Transaction