The pressure to put green development and Environmental, Social and Governance (ESG) criteria at the heart of corporate decision-making has led to the creation of two new types of loans, Green Loans and Sustainability Linked Loans. The basic principles of both types of loans were created by the EU Loan Market Association. More specifically: In …
China’s Labour shortage continues to rise
In addition to the rapidly aging percentage of the Chinese population, China is facing a growing labor shortage even for unskilled jobs. This twin problems will slowly and steadily, if continued, create a deficit in China’s social security and pension fund revenues and as the need for pensions and old-age services increases exponentially. The period …
Smaller in Absolute Size but, Bigger the US Budget Deficit
Due to the rapid recovery of the US economy, the Biden government predicts that this year the Federal Budget deficit will be $555 billion lower than the corresponding budget in May. In absolute numbers, the forecast is for a deficit of $3.12 trillion for the financial year ending September 30, 2021. The deficits are not …
Fixed-Income Markets for the rest of 2021
Due to the pandemic measures, governments have borrowed too much, but so have businesses, with very low borrowing costs due to low interest rates. However, both the low interest rates on the bonds and their yields create an ever-increasing climate of concern for a possible “explosion” of collapse. Debts of non-financial corporations in developed economies …
Commodities forecasting for the rest of 2021
Commodities are moving upwards. Both supply chain fragmentation problems (globally) and climate change problems (e.g., prolonged droughts in Central and South America and Africa) have pushed commodity prices soaring. The increased prices observed in futures in basic commodities in the summer editions, have not yet passed to the consumer markets. These price increases will come …
Stocks forecasting for the rest of the 2021
The US S&P index has very quickly covered the lost ground lost by its fall caused by the implementation of measures to deal with the Covid-19 pandemic. It is constantly growing, breaking one record after another. The Fed expects inflation to be transient and monetary tapering to be implemented smoothly, causing mild corrections in the …
Climate Change the Greatest Threat to the Global Supply Chain from Global Pandemics – Business Strategies
In recent years, humanity has witnessed extreme climatic and environmental phenomena such as huge fires, terrible heat waves, long droughts, severe floods and heavy snowfalls and frosts, the appearance of which create fragmentation and fragmentation. The Covid-19 pandemic has forced countries around the world to adopt unprecedented situations of restricting the movement of people and …
The Complex Securitization
Before analyzing the complex securitization, we must present what securitization is. Securitization follows a specific process where a financial institution (originator) designs a financial product by choosing to group different types of financial items from its balance sheet into a group. The financial institution then sells this group of financial assets to investors through the …
New World Record in IPO and What is Required by Companies for a Successful IPO
Given the dynamics of Q12021 IPOs that continue unabated and Q22021, creating the highest number of IPOs and corresponding capital, we conclude that global growth is ongoing. More specifically: Q12021, public registrations dominated through SPACs (Special Purpose Acquisition Companies) with 1070 public registrations and $222bn raised capital. Q22021, traditional public subscriptions dominated, due to high …
In 4 Months Low the Price of Gold
On 9/08/2021 gold fell to 1684.37, recording a fall of 4.4% (the lowest price since 31/03/2021). The reasons that led investors to sell gold en masse have to do with their expectations regarding the future economic environment. More specifically: 1. Increased number of jobs in the US warn investors that the dollar is about to …