May 11, 2021

Street

Capital Calls: Chinese e-insurance IPO warns Wall Street

Shen Peng, founder and CEO of Chinese online insurance technology firm Waterdrop Inc, speaks during an interview with Reuters ahead of the company’s U.S. initial public offering (IPO) on New York Stock Exchange (NYSE), in Beijing, China May 7, 2021. REUTERS/Tingshu Wang – RC2TAN9JXXRD

Concise insights on global finance.

———————————————–

MUTUALLY INSURED DESTRUCTION. Online insurance platform Waterdrop closed down read more 19% on its first day of trading in New York. Amid Beijing’s campaign against the fintech sector, the offering was a tough sell. Still, the Tencent-backed (0700.HK) company raised $360 million after pricing shares at the top of the

Read More

Wall Street ready to toast a New York revival but trade business suits for leisure wear

A man wearing a protective face mask walks by 14 Wall Street in the financial district of New York, U.S., November 19, 2020. REUTERS/Shannon Stapleton

Wall Street financiers let out a cautious cheer on Thursday after hearing New York City aims to fully reopen on July 1, craving the meetings and meals of work life before the pandemic, but also loathing the grind of mass transit, packed office elevators and conventional business attire.

New York City Mayor Bill de Blasio on Thursday announced his intention to get things back to normal. New York Governor Andrew Cuomo, who controls reopening decisions,

Read More

Wall Street Finds New Way To Finance Unprofitable Tech Firms

No earnings? No problem. Investors are funneling money to unprofitable software companies through a new type of debt deal.

Nonbank lenders like Golub Capital, AllianceBernstein Holdings LP and Owl Rock Capital Partners LP have issued asset-backed bonds to help finance about $2 billion of loans to such companies since November, according to data from Kroll Bond Rating Agency Inc. and S&P Global Market Intelligence. Many of the loans are to fast-growing, but still unprofitable, software enterprises.

The rash of recent deals is the latest indicator that large investors have resumed their hunt for high-yielding debt to offset low interest rates

Read More

Wall Street bet on financing self-employed home buyers. Will there be regrets?

Wall Street’s comeback story in U.S. housing finance has hinged on lending to self-employed borrowers and others who don’t quite fit the mold.

It financed millions of homes in recent years using alternative forms of documentation to gauge a borrower’s ability to afford a mortgage, sometimes at double the rates of interest as conventional mortgages.

But after a year of the pandemic, the small but important corner of housing finance referred to as the “non-qualified mortgage” (non-QM) segment has impairments that remain stubbornly high when compared with the rest of the U.S. housing market.

The non-QM rate of impairment hit

Read More

Kerry to Wall Street: Put your money behind your climate PR

“There’s an urgency in the timing,” said Rachel Kyte, who led sustainable development at the World Bank and was its special envoy for climate change. “It’s a political hot potato that Kerry is dealing with.”

Kerry has pitched banks on creating a U.S. net-zero banking alliance following the climate commitments from six major Wall Street banks, according to two people familiar with the discussions. Citi, Wells Fargo, Bank of America, Morgan Stanley and Goldman Sachs all set 2050 net-zero goals and JPMorgan Chase has said its lending would be aligned with the Paris agreement although Kerry and his team are

Read More

Reddit traders’ failed war on Wall Street proved the system is rigged

  • Reddit day traders tried to beat Wall Street at its own game to prove the system is rigged.
  • Instead, brokerages locked them out and their holdings tanked, while some hedge funds still won big.
  • Experts said Wall Street’s reaction showed just how high the deck was stacked against small investors.
  • Visit the Business section of Insider for more stories.

Keith Gill, the day-trading member of the Reddit group Wall Street Bets who is widely credited with igniting the recent GameStop trading frenzy, claimed in late January that he had turned his $54,000 investment into a $48 million fortune.

Days

Read More