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BofA is overworking its bankers
Markets remained relatively calm on an information-light trading day. Meanwhile, BofA is dangerously overworking junior bankers, Elon Musk interviewed Trump on X, private credit is gambling on consumers, and the Olympics memes keep rolling in.
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Good Morning,
Markets remained relatively calm on an information-light trading day. Meanwhile, BofA is dangerously overworking junior bankers, Elon Musk interviewed Trump on X, private credit is gambling on consumers, and the Olympics memes keep rolling in.
Invest in exclusive private market deals with 10 East, a membership-based investment firm comprising prominent Wall Street veterans.
Let’s dive in.
Before The Bell
As of 08/12/2024 market close.
Markets
US stocks close relatively unchanged ahead of Wednesday's CPI release
China 10Y futures dropped 0.6% in their worst day since March 2023, with yields jumping 4 bps from record lows on central bank intervention
Gold steadied near its record high
Earnings
What we're watching this week:
Today: Home Depot
Wednesday: UBS, Cisco
Thursday: Walmart, Alibaba, Applied Materials
Full calendar here
Headline Roundup
BofA ignores its own rules to dangerously overwork junior bankers (WSJ)
Automation is coming for junior PE roles (FT)
Wall Street giants are flocking to Texas (WSJ)
Hedge funds reduce risky positions on volatility fears (RT)
Yen-hedged ETF suffered worst outflows in six years from carry trade fiasco (BBG)
Middle East trillions force new concessions from PE giants (BBG)
Private credit enters risky terrain with huge bets on consumers (BBG)
Fed's reverse repo facility could stagnate at $300B (BBG)
Investment bank B. Riley shares tanked on widened SEC probe (BBG)
Australian financials are outperforming miners (RT)
Activist Saba Capital's BlackRock-targeted fund is up 22% YTD (BBG)
Elliott is seeking to add Jesse Cohn to Starbucks' board (CNBC)
US ends investigation into short-seller Carson Block (RT)
RBC's ex-CFO sued for wrongful gender-based termination (RT)
Standard Chartered folded coverage groups into its M&A advisory (RT)
Trump returned to X / Twitter (CNBC)
Travel boom begins to slow down (WSJ)
Ukraine invaded Russia (FT)
A Message From 10 East
Where Sophisticated Investors Access Private Markets
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Members have the flexibility to participate on a deal-by-deal basis across private equity, credit, real estate, and venture capital.
Benefits of 10 East membership include:  
Flexibility – members have full discretion over whether to invest on an offering-by-offering basis. 
Alignment – principals commit material personal capital to every offering.  
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There are no upfront costs or commitments associated with joining 10 East.
Exec Sum readers can join 10 East with complimentary access here.
Deal Flow
M&A / Investments
Indian conglomerate Bharti Enterprises agreed to buy a 24.5% stake in BT worth ~$4.1B from Patrick Drahi's troubled telecom Altice (FT)
Carlyle is exploring a $3.3B sale of Dutch chemicals producer Nobia (FT)
Media firm Hearst will buy healthcare workforce management software firm QGenda from Francisco Partners at a $2B-$3B valuation (WSJ)
Canada's Scotiabank will acquire a 14.8% stake in US regional lender KeyCorp for $2.8B (RT)
Engineering firm WSP will buy energy-focused rival Power Engineers for $1.8B (BBG)
Global gold miner Gold Fields will acquire Canadian peer Osisko Mining in a $1.6B cash deal (RT)
Canada's Tourmaline Oil will acquire Crew Energy in a $948M all-stock deal, which includes debt (RT)
Biotech Crown Laboratories will take private anti-wrinkle injection maker Revance Therapeutics for $924M, including debt (RT)
Asset manager Janus Henderson will acquire a 55% stake in private credit firm Victory Park Capital in a cash-and-stock deal (FT)
Vivendi's TV unit Canal+ will double its stake in digital pay-TV company MC Vision to 75% (BBG)
Blackstone acquired a majority stake in engineering firm Westwood (WSJ)
Crystal Palace co-owner John Textor is interested in acquiring a majority stake in Premier League rival Everton (RT)
Citigroup's wealth unit is selling its trust & fiduciary services business (RT)
VC
UptimeAI, an AI-based plant monitoring software, raised a $14M Series A led by WestBridge Capital (PRN)
Battery performance tech startup Gaussion raised a $12M Series A led by Autotech Ventures (EU)
Indian EV charging startup Kazam raised an $8M Series A3 led by Vertex Ventures (TC)
Cross-border payments platform Conduit raised a $6M seed extension from Helios Digital Ventures (TC)
Ragie.ai, a fully managed RAG-as-a-Service, raised a $5.5M seed round led by Craft Ventures, Saga VC, and more (PRN)
IPO / Direct Listings / Issuances / Block Trades
Debt
Eli Lilly sold $5B in bonds to fund its $3.2B acquisition of gut-drug maker Morphic (BBG)
JetBlue Airways kicked off a $2.8B ABS sale backed by its loyalty program (BBG)
Distressed Chinese developers Logan and KWG secured a $1B private loan from JPMorgan to refinance debt (BBG)
Bitcoin miner Marathon Digital will sell $250M of convertible senior notes to acquire more crypto (BBG)
PE-owned prison-food vendor TKC is seeking to reprice a $500M loan (BBG)
Bankruptcy / Restructuring / Distressed
Crypto hedge fund 3AC's liquidators are seeking $1.3B from TerraForm Labs (BBG)
Flooring retailer LL Flooring filed for Chapter 11 bankruptcy and intends to close or sell its retail stores (BBG)
Equinox-owned Blink Fitness filed for bankruptcy with intentions to sell (RT)
Swedish landlord Oscar Properties averted insolvency after settling with a creditor seeking a bankruptcy claim (BBG)
Troubled Chinese developer Kaisa plans to finalize restructuring terms before it faces a liquidation petition in one month (BBG)
Fundraising
Crypto Corner
Exec’s Picks
With only two of eleven co-founders still active at OpenAI, FT dug deeper to find out where the rest have gone.
Last week, tennis legend Roger Federer debuted his RF Collection by Wilson. The RF 01 racquet is an instant classic and the rest of the collection is incredibly sleek. Shop the collection here.
FT shared some insightful analysis on how the summer holidays may have made last week's market turmoil worse.
Summers in NYC are incredibly hot and humid. If you’re commuting into the office and want to avoid sweaty backs and armpits, you deserve the most comfortable and breathable performance dress shirts in the market. Check out Mizzen + Main.
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