0DTE 500

Author

Litquidity Capital
January 06, 2025

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Good Morning,

Quant funds disappointed in 2024, US revealed a privatization path for Fannie Mae and Freddie Mac, US Steel's CEO tore Biden a new one, Centerview Partners is weighing an IPO after posting a record year, and 0DTE options became the most popular option contract on the S&P 500.

Whether you work with early-stage startups or growing enterprises, Brex offers the complete financial stack for your firm. Optimize all your PortCos' banking needs with Brex, startup banking that takes every dollar further.

Let's dive in.

Before The Bell

As of 1/3/2025 market close.

Markets

  • US stocks rebounded on Friday to cut losses from a shaky start to the new year

    • S&P and Nasdaq snapped a five-day losing streak

  • China 2Y yield dropped to 1% for the first time ever

  • Gold-EM currencies correlation turned the most negative in three years

  • Aussie dollar had its worst year since 2018 

  • US natural gas prices are up 14% MoM amid imminent polar vortex

Earnings

  • What we're watching this week:  

    • Wednesday: Jefferies, Albertsons  

    • Friday: Delta, Walgreens, Constellation Brands

  • Full calendar here

Prediction Markets

  • Justin Trudeau is expected to resign. See how markets are betting on Canada's PM succession.

  • Trade your predictions on a range of events legally, only on Kalshi. Get a $20 bonus when you deposit $100 with code LIT on signup!

Headline Roundup

  • Quants funds saw big year go bust in cross-asset spiral (BBG)

  • Stock picking hedge funds posted the best returns since Covid (RT)

  • US is set for an IPO comeback as PE firms seek to exit (FT)

  • Trading disruptors mimicking banks are expected to beat them (RT)

  • Spike in failed trades shows persistent 20Y US bond shortage (BBG)

  • 0DTE options are the most popular options on S&P 500 (BBG)

  • Accounting firms want to block new US disclosure rules about auditors (FT)

  • Trader who made billions in 2008 returns to bet on market swings (BBG)

  • Trump haunts central banks primed for wary rate cuts in 2025 (BBG)

  • Trump, Fed seen risking $127B bond spree in Latin America (BBG)

  • China will sharply increase ultra-long treasury bond funding in 2025 (RT)

  • Korean markets ride out crisis as global debt funds keep buying (BBG)

  • Trump named Kalshi exec Samantha Schwab to Treasury (X)

  • US revealed a privatization path for Fannie Mae and Freddie Mac (RT)

  • Nazi ties to Credit Suisse ran deeper than previously known (WSJ)

  • AQR multi-strategy returned 15% YoY on equity and macro gains (BBG)

  • CrowdStrike shares recovered all losses since global IT outage (FT)

  • Japanese firms are pulling out all the stops to recruit young workers (BBG)

  • Goldman Sachs named Alex Golten as its new chief risk officer (RT)

  • An Asian VC sued PayPal for racism in investment program (WSJ)

  • US Steel CEO ripped Biden for blocking merger (US)

  • Hybrids help boost US new car sales to five-year high (RT)

  • Canada aims to become world's biggest uranium producer (FT)

  • Generation Beta has arrived (AX)

  • Corporate execs are being hit by AI-generated phishing scams (FT)

  • US Surgeon General linked alcohol to cancer (NYT)

  • NYC debuted congestion pricing (BBG)

A Message from Brex

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Deal Flow

M&A / Investments

  • US blocked Japanese steelmaker Nippon Steel's $14.1B acquisition of US Steel on national security concerns

  • $50B-listed payroll processor Paychex is in advanced talks to acquire $3.3B-listed peer Paycor

  • $980M-listed Getty Images is exploring a merger with $1.1B rival Shutterstock

  • CC Capital Partners offered to acquire Australian wealth manager Insignia Financial for $1.8B, beating a $1.66B offer from Bain Capital

  • PE firm Canyon Bridge Capital Partners is seeking to sell chip designer Imagination Technologies for over $680M

  • Digital-asset prime brokerage firm FalconX acquired crypto derivatives startup Arbelos Markets

  • Centerview Partners is open to a stake sale or IPO after receiving interest from big investors

  • Disgraced hedge fund founder Simon Sadler is seeking to sell UK football club Blackpool FC

VC

  • KoBold Metals, a startup using AI to find copper, raised a $537M Series C led by Durable Capital Partners and T Rowe Price

  • Electra, a startup using electricity to purify iron, raised $180M in funding from a variety of undisclosed investors

  • Cimulate, a startup helping brands meet consumer demands, raised a $28M Series A led by Spark Capital

  • Belgian holographic display startup Swave Photonics raised a $29.5M Series A led by imec.xpand and SFPIM Relaunch

  • Jentic, an Irish startup building an integration layer for AI, raised a $4.3M pre-seed round led by Elkstone

  • Construction tech startup StruxHub raised a $4M seed round led by Brick and Mortar Ventures

IPO / Direct Listings / Issuances / Block Trades

  • MicroStrategy is seeking to raise $2B more in preferred stock to buy more Bitcoin

  • BC Partners and Pollen Street Capital are planning to IPO UK lender Shawbrook at an over $2.5B valuation

SPAC

  • Online firearms retailer GrabAGun agreed to merge with Colombier Acquisition Corp. II in a $150M deal

Fundraising

  • Peter Thiel-backed venture debt firm Tacora Capital raised $269M for its second fund

Crypto Sum Snapshot

  • BlackRock's Bitcoin ETF recorded its largest ever daily outflow (BBG)

  • FDIC warned banks on crypto but did not order halt to business (RT)

  • Check out Crypto Sum for the full stories on everything crypto!

Exec’s Picks

Financial Services Recruiting 💼

If you're a junior banker looking for your next career move, check out Litney Partners, a recruiting firm established by Litquidity and Whitney Partners (the oldest purely financial services executive search and consulting firm).

We aim to place strong candidates across private equity, hedge funds, venture capital, growth equity, credit, and investment banking.

We're currently seeking talent for some incredible roles. Head over to Litney Partners to drop your resume / create your profile and we'd love to get in touch!

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