Stop me if you’ve heard this before, but a Wall Street firm wants to invest in debt.
Schonfeld Strategic Advisors, the $14 billion family-office-turned-hedge fund is building out a new group focused on credit within its macro trading business, Insider reports.
The group will be run by former Anchorage Capital Group trader Andrew Silverman, and its part of the Schonfeld’s bigger plans to grow into a multi-manager hedge fund powerhouse, Insider’s Alyson Velati reports.
And it makes sense! Interest rates are high and market volatility has banks skittish, which means people are looking for alternative avenues to borrow money.
Finance firms are happy to oblige because credit is complicated and complicated is good.
A general rule on Wall Street is that firms like to build businesses around complex things. A simple process means it is easily repeatable by someone else, which means more competition, which means smaller margins, which means less profit.
But something complex — like credit, per say — provides plenty of intricacies and nuance.
Firms can roll out a bunch of fancy people with fancy degrees that use fancy words to prove how sophisticated what they are doing is. And while it might seem confusing, it really boils down to being able to charge a lot more money for their services.
Sure, that might be a cynical take. But it’s not that wrong! Finance firms thrive on making it seem like they can offer you something no one else can.
4. One of the biggest players in the cannabis industry is making a push to get into the US via a complex deal. In the type of transaction that is probably catnip for M&A bankers and attorneys, Canadian weed giant Canopy Growth is acquiring a handful of US cannabis businesses in a deal that allows them to own, but not control, them. We’ve got on the details on how it’s structured and why it may, or may not, work.
6. It’s been a tumultuous year for adtech, which typically makes for great M&A opportunities. We mapped out 9 European digital-marketing companies that experts say could be on the market. Check them out here.
7. Does PE have too many seats at the table? The Justice Department is investigating Blackstone, Apollo Global Management, KKR, and other private-equity firms over whether the number of board seats they hold across various companies could go against antitrust laws, Bloomberg reports.
8. Wall Street’s top cop is getting paid. The SEC issued $2.2 billion in fines on public companies, including 13 fines larger than $100 million, during its 2022 fiscal year, The Wall Street Journal reports.
10. And if you do happen to be working from home, get in the spirit with these 13 horror movies you can stream. Does ‘The Nightmare Before Christmas” count as a Halloween movie or a Christmas movie? (It’s not on the list, but it’s on Disney+.) Either way, check out the full list here.