David Fuller and Eoin Treacy's Comment of the Day
Category - General

    How Blackstone Turned India Into Its Most Profitable Market

    This article by George Smith Alexander and Anto Antony for Bloomberg may be of interest to subscribers. Here is a section:


    Blackstone’s private equity funds have now invested a total of $3.5 billion in India. The firm is planning to add another $2 billion of such investments in the country over the next five years, Dixit said.

    Its Tactical Opportunities fund acquired a stake last year in an Indian asset reconstruction company that buys bad loans. Blackstone is also looking at insolvent firms put up for sale under the new bankruptcy law that took effect in December 2016, he said.

    At the turn of the century, many Indian industries weren’t fully open to foreign investment, and family-run businesses were wary of ceding control. Private equity has now become a “very important” source of funding for Indian companies’ growth, according to Sunil Sanghai, founder of NovaDhruva Capital Pvt. Blackstone has been successful in aligning its interests with portfolio company executives as well as finding the right time to sell, he said.

    “In the past few years, the investment climate has certainly undergone a positive change,” Sanghai said. “The private equity firms have also matured: they have seen a couple of investing cycles, and they now have experience with Indian companies and Indian management.”

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    Security analysis of the most popular cryptocurrency exchanges

    Thanks to a subscriber for this article which may be of interest. Here is a section:

    This table shows that out of the 140 exchanges we analyzed less than 40% of them are using headers like the Strict-Transport-Security header or the X-XSS-Protection header. 20% expose server information which isn’t a security vulnerability in itself but that clearly shows the low level of security best practices implemented. And 26% of them use frontend libraries with known vulnerabilities. Only 2% implemented a Content-Security-Policy that, if done well, can offer powerful protection against clickjacking or XSS….

    We can do better.

    Our analysis isn’t saying that these exchanges have blatant vulnerabilities. But I’m questioning whether they implemented deeper security controls and protections if they didn’t implement basic security best practices that only take a few minutes (or seconds with Sqreen) to implement.

    After taking the volume that these platforms handled in the last 24h, I wanted to see if there was a correlation between volume traded and security.

    The answer is clearly no. There’s no correlation between transaction volume and security maturity.

    The 10 biggest crypto exchanges have an average grade of 3.8 out of a maximum of 10 and a median of 4.5.

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    Japan Scandal Gives Fresh Boost to Yen Bulls Eyeing 100 Mark

    This article by Masaki Kondo and David Finnerty for Bloomberg may be of interest to subscribers. Here is a section:

    Governor Haruhiko Kuroda made it clear last week the current stimulus program will remain in place for a while. There’s concern that any move past 100 could prompt a policy response if it’s deemed to hurt attempts to reflate the economy. However, his remarks on March 2 that the bank will start thinking about a stimulus exit in fiscal 2019 have at least increased market speculation over the timing of a possible normalization.

    Kuroda’s mention of an exit was meant to prime markets for an eventual withdrawal, says Daisuke Uno, chief strategist at Sumitomo Mitsui Banking Corp. in Tokyo. “Given the reduction in bond purchases, the BOJ is already laying ground for an exit. It just isn’t saying so.”


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    Bigger U.S. Auctions in Shorter Time Seen Boosting Yields

    This note by Brian Chappatta for Bloomberg may be of interest to subscribers. Here is a section:

    Bond traders have to contend with both larger auction sizes and a condensed schedule when the U.S. Treasury sells $28 billion of three-year notes and $21 billion of 10-year notes on March 12. To JPMorgan Chase & Co. strategists, that combination signals a weak reception. Last month’s offerings, the first since 2009 to increase in size, priced at yields higher than the market was indicating heading into the sales. The 3- and 10-year auctions are usually spaced out over two days, but when they came on the same day in December, yields also missed higher.

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    There's No Accounting for Tesla Bondholders' Tolerance

    This article by Liam Denning for Bloomberg may be of interest to subscribers. Here is a section:

    There's more to be found off the balance sheet, too. According to Tesla's annual filing, which dropped a couple of weeks ago, it's potentially on the hook for an estimated $8.5 billion of contracted purchases over the next three years alone. Most of this relates to batteries coming from Panasonic Corp. and emphasizes the importance of Model 3 production catching up with the vast ambitions set ahead of it.

    That fixed-income investors are fine with this is, of course, a function of their primary defense; namely, Tesla's gravity-defying stock price. The potential for an eighth equity sale to refill company coffers serves to salve any wounds inflicted by slipping Model 3 targets or senior managers sipping away. In early trading on Friday morning, the shares were down less than 1 percent.

    What might cause the market's confidence to crack? It's impossible to say, though the Model 3's woes represent the most acute threat. We are now just over three weeks away from the March 31 deadline to get weekly production up to 2,500; a target that's been reset several times already. Bloomberg's own tracker estimates the current rate at less than 700.

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    How a Donald Trump-Kim Jong Un Summit Scrambles the Calculus for Key Players

    This article by Jonathan Cheng in Seoul and Alastair Gale for the Wall Street Journal may be of interest to subscribers. Here is a section:

    President Donald Trump’s decision to accept a meeting with North Korean leader Kim Jong Un caught the world off guard.

    In agreeing to sit down with North Korea’s third-generation leader, Mr. Trump has boosted the stature of Mr. Kim—a man he has ridiculed as “Little Rocket Man” and threatened with “fire and fury”—with a surprise diplomatic opening that left some allies wrong-footed.

    For Mr. Kim, who is half the age of Mr. Trump, just getting a summit meeting with the U.S. president is a big win. Neither his father nor his grandfather succeeded in getting a face-to-face meeting with a sitting U.S. president.

    Mr. Trump’s move represents a victory for South Korea’s president, Moon Jae-in, who has pleaded with the U.S. to tone down its rhetoric and worked assiduously to get negotiations off the ground, and others who have pushed for engagement and diplomacy.

    Other U.S. allies and some veteran negotiators, however, expressed concern that while a summit meeting could lead to a breakthrough in what has been a protracted standoff, it is a risky move that could lead to ill-considered concessions to Pyongyang.

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