German mergers and acquisitions will have “another strong year” in 2015, helped by an increase in spinoffs and shareholder activism, a senior JPMorgan Chase & Co. (JPM) banker said.
“We’re coming from a very strong base and therefore it would be really ambitious to say we’ll see clearly more,” Dirk Albersmeier, head of German M&A at JPMorgan, told reporters in Frankfurt.
Posted in Equity Markets, Finance
Tagged Amid Activism, Bloomberg, boardroom, corporate actions, Deal Boom, Deal Market, fossil-fuel, Frankfurt, German, German M&A, hedge fund, investment banking, JPMorgan, M&A, Merge&Acquisitions, power plants, Private Equity, renewable energy, shareholder activism, Sigma-Aldrich, spinoffs
Daniel Bonventre (Bloomberg)
According to Bloomberg,
A former JPMorgan Chase & Co. (JPM) banker who managed Bernard Madoff’s account said the con man was on track to receive a $200 million loan less than a month before his arrest if the request hadn’t been dropped.
Daniel Bonventre, one of five ex-Madoff employees on trial for allegedly aiding the fraud, asked JPMorgan in November 2008 to borrow twice Madoff’s credit limit of $100 million, with U.S. Treasuries as collateral, Mark Doctoroff, who left the bank last year, testified yesterday in federal court in Manhattan.
“They are doing well financially,” Doctoroff said of Madoff’s securities firm in an e-mail to JPMorgan’s credit department on Nov. 17, 2008. “They are looking at the current market as an opportunity to make investments, true to their value investing style.”
The five former employees are accused of helping Madoff hide his fraud from customers, banks and regulators for years, and getting rich in the process. It’s the first criminal trial stemming from the scheme, which prosecutors say started in the early 1970s and imploded at the peak of the financial crisis.
The loan was part of a last-ditch attempt by Madoff to secure cash as his Ponzi scheme was collapsing and Bonventre’s role in the application process was one of the many examples of his involvement in the fraud, prosecutors have said.
Doctoroff, who was Madoff’s relationship manager at the bank from about February 2008 until Madoff’s arrest in December that year, said he didn’t know at the time Madoff had a formal investment advisory unit — the center of the Ponzi scheme involving fake trades — or that Madoff’s JPMorgan account was used for that business.
Posted in Economy, Equity Markets, Events, Finance, New York
Tagged Bernard Madoff, Daniel Bonventre, Economy, equity, financial markets, investment, investment bank, JP Morgan, JPMorgan, Manhattan, Modern Finance Report, Private Equity
According to Financial Times’ Brian Bollen, The implications of central clearing of over-the-counter derivatives for certain hedge fund trading strategies could be significant.
If Olivier Lebleu, London-based head of non-US distribution for Old Mutual Asset Management, is correct in his analysis, the imposition of higher levels of transparency will make life increasingly difficult for hedge fund traders pursuing relative value fixed income strategies.
To illustrate his thesis, he points to two of the most high-profile events of recent years in which one party identified vulnerability in another and constructed customised transactions specifically to position itself to exploit that vulnerability. Centralised clearing of OTC derivatives would diminish de facto and de jure the ability of Paulson & Co to trade against the subprime mortgage market as it controversially did in 2007, and the ability of hedge funds to stage a repeat of the “whale trade” attacks on JPMorgan in the spring of 2012.
“The primary pool of funds this process impacts are sophisticated credit strategies,” adds Peter Laurelli, a New York-based vice-president at eVestment, a provider of institutional investment data intelligence and analytic solutions.
“But it will impact other groups that trade in the OTC derivative markets on an opportunistic basis as well, including macro and multistrategy funds. I don’t think this process will eliminate the ability of hedge funds to exploit unique opportunities as the bilateral structure for OTC derivatives is not disappearing.”
Posted in Derivatives, Economy, Finance, Hedge Funds
Tagged Derivatives, hedge fund, Hedge Fund Happy Hour, JPMorgan, London, New York, Olivier Lebleu, Peter Laurelli, US