May 11, 2021

Wall

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.

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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

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Brian Kolfage Can’t Use ‘We Build a Wall’ Money for Legal Defense: Judge

  • A “We Build a Wall” co-founder can’t use the money he raised to pay for his legal defense, a judge ruled.
  • Prosecutors say Brian Kolfage used money intended for a US-Mexico border wall to enrich himself.
  • On Thursday, Kolfage was hit with a separate indictment alleging he underpaid his taxes.
  • See more stories on Insider’s business page.

“We Build a Wall” co-founder Brian Kolfage cannot use the funds he purportedly raised for a US-Mexico border wall in order to fund his legal defense in a criminal fraud case, a federal judge said Thursday in a ruling reviewed by Insider.

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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,

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Great Wall Offloads Insurance Unit as Asset Managers Ordered to ‘Get Back to Basics’

As the crisis at scandal-hit state-owned China Huarong Asset Management Co. Ltd. deepens, the country’s other top national asset management companies (AMCs) are busy shedding non-core assets as they respond to regulators’ calls to return to their original mission of dealing with bad debts in the financial system.

China Great Wall Asset Management Co. Ltd. put its 70% stake in Great Wall Changsheng Life Insurance Co. Ltd. up for sale, according to an announcement (link in Chinese) published Wednesday on the Shanghai United Assets and Equity Exchange. The shareholding comprises a 51% stake owned by the AMC itself and 19%

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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

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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

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