Hello everyone,
An Headlink-Partners selection of articles (in English and in French) from last week on Capital Markets, Asset Management and more.
Enjoy!
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Capital Market
- A quant startup made $430 Billion in Banks’ systemic risk vanish in 25 minutes (how trade compression thanks to smart algorithms can reduce risk exposure on Fx trades for 6 major dealers)
- Deutsche Bank fights to regain Investment Banking Market shares (without clients’ confidence, it’s impossible)
- Deutsche Bank swings into profit for 3rd quarter
- Here’s how Goldman Sachs lays people off (quietly, smoothly, through the year)
- Brexit : les banques britanniques songent à quitter le Royaume-Uni (les premières relocalisation sur le continent sont anticipées dès la fin de cette année)
Asset Management and Private banking
- A hedge fund manager who retired at 36 says stay away from this industry (this industry with high fees and low performance is just doomed: « the highest return on capital right now is not investing, it’s building a business like a coffee shop »)
- 99% of actvely managed US Equity funds underperform since 2006 (it clearly shows that this Industry is not able to deliver added-value for clients. The shift to passive strategies will speed up)
- Brexit threatens UK fund management industry influence (it’s about more than passporting rights, it’s also a question of free recruitment)
- Deutsche Bank’s ETF bleed $8bn this year (the noise around DB hits its AM activity hard)
- Deutsche Bank AM struggles to keep clients (when your parent company is in trouble, it is hard to keep the confidence of clients)
Digital and Fintechs
- A self-driving truck made its first delivery (That’s a huge milestone, process automation will wipe out thousands of jobs in the coming years)
- Swift struggles to stay relevant in a Blockchain world (One big side effect of Blockchain’s rise)
- Les néo-banques ne sont pas prêtes d’être rentables (quand tout est gratuit ou presque et avec des coûts d’infrastructure non négligeables, c’est une évidence. Même raisonnement pour les robo-advisors)