Rate Cut SZN

Author

Litquidity Capital
September 19, 2024

Together with

Good Morning,

JPMorgan appointed a banker to oversee juniors 'wellbeing,' Ray Dalio and Lim Chow Kiat cautioned on the global economy, wealthy families are getting bullish on risk assets, and the Fed announced a 50 bps rate cut in what was the least predictable decision in 15 years (and first rate cut since Covid).

With AI fueling demand for increased electrical capacity, Chicago Atlantic is here with an opportunity to invest in their Digital Mining strategy.

Let's dive in.

Before The Bell

As of 09/18/2024 market close.

Markets

  • US stocks closed slightly lower as investors digested an upsized 50 bps Fed rate cut, its first since March 2020

    • The decision lowers the federal funds rate to a range between 4.75-5.00%

    • Futures markets priced 74 bps of additional rate cuts by year-end

  • US yield curve hit its steepest level since July 2022

Earnings

  • General Mills beat Q1 earnings and revenue estimates and forecast uptrends for FY 2025 on improved volumes and market share (BZ) 

  • What we're watching this week:  

    • Today: FedEx

  • Full calendar here

Headline Roundup

  • JPMorgan appoints banker to oversee juniors 'wellbeing' (FT)

  • Fed cut rates by 50 bps in first cut since Covid (CNBC)

  • J Pow doesn't see signs of recession risk (BBG)

  • US borrowers get quick relief as Fed cuts rates (RT)

  • India overtakes China in world's biggest investable stock benchmark (FT)

  • Foreign holdings of US Treasuries rose to a record high (RT)

  • Munis bond sales are set to shatter records by year-end (BBG)

  • Ray Dalio and GIC's CEO voiced caution on global economy (RT)

  • Boeing furloughed tens of thousands in corporate amid strikes (WSJ)

  • 23andMe's entire board resigned (CNBC)

  • Wealthy families are getting more bullish on risk assets (RT)

  • US 30Y mortgage rate fell to a two-year low (RT)

A Message From Chicago Atlantic

Sustainable Access to Digital Mining Opportunities

The Chicago Atlantic Digital Mining strategy provides a stable structure for investors to gain exposure to bitcoin mining with cash flow distributions, tax depreciation benefits, attractive returns and potential capital appreciation.

Since inception, we have distributed annualized returns of 36 percent.

Submit your interest below and a Chicago Atlantic advisor will share the opportunity.

Deal Flow

M&A / Investments

  • CVC is willing to increase its $15.6B offer for Deutsche Bahn's logistics unit Schenker after losing the bidding Danish logistics firm DSV (BBG) 

  • PE firms TDR Capital and I Squared Capital are considering a sale or IPO of portable power generator supplier Aggreko, which could fetch a $10B valuation (BBG) 

  • Blackstone, Advent,  KKR, CVC, H&F and TPG are studying bids for $7B-listed eye-care company Bausch + Lomb (FT) 

  • Canada's Rogers Communications will acquire BCE's 37.5% stake in Raptors-owner Maple Leaf Sports & Entertainment for $3.5B to own a majority stake (BBG) 

  • Vista Equity Partners is weighing a sale of fintech Finastra's Treasury and Capital Markets unit for over $2B (BBG) 

  • Grant Thornton US and European PE firms EQT and Permira were among shortlisted bidders for a stake in Grant Thornton UK that may be valued at ~$2B (FT) 

  • Mobile games developer Playtika will acquire peer SuperPlay in a $1.95B deal (RT) 

  • Alaska Airlines completed its $1.9B merger with Hawaiian (RT)

  • Sixth Street Partners and Patron Capital will acquire UK homebuilder CALA Group from UK financial-services firm Legal & General in a $1.8B deal (BBG) 

  • Women's health firm Organon will acquire Roivant's dermatology unit Dermavant for up to $1.2B (RT) 

  • French identity services firm IN Groupe is nearing a deal to acquire Idemia's European biometric unit from Advent at a $1.1B valuation (BBG) 

  • PJT Partners will acquire Mideast-focused boutique deNovo Partners (FT) 

VC

  • Hotel Engine, a hotel bookings solution for business travel, raised a $140M Series C at a $2.1B valuation led by Permira (SAAS)

  • French legal AI startup Jus Mundi raised a $22M Series B led by Acton Capital and True Global Ventures (SAAS)

  • Travel rewards platform POINT.ME raised a $15M Series B led by Nyca Partners and Citi Ventures (PRN)

  • Non-custodial stablecoin exchange TrueX raised a $9M seed round from RRE Ventures, Solana Foundation, Hack VC, and more (BW)

  • Wegrow, a software startup optimizing business practices, raised a $7M Series A led by Nauta (EU)

IPO / Direct Listings / Issuances / Block Trades

  • Indian state-run NTPC Green Energy filed for a $1.2B IPO (RT) 

  • European chemicals giant BASF plans to IPO its agrichemicals business (BBG)

Bankruptcy / Restructuring

  • Tupperware filed for Chapter 11 after turnaround efforts failed (WSJ) 

Fundraising

  • Credit firm Polus Capital Management raised $1B for its special situations strategy (BBG) 

  • VC Headline raised $865M for their fourth growth fund (BW) 

  • Early-stage VC Costanoa Ventures raised $394M for two new funds (BBG)

Crypto Corner

  • UK fintech giant Revolut is planning its own stablecoin (CD) 

  • Switzerland stock exchange SIX is exploring launching a crypto exchange (FT)

Exec’s Picks

  • Stoked to be collaborating with Baudoin & Lange to bring their signature craftsmanship to the unique culture of the finance world. The brand is a symbol of elegance worn by the likes of Roger Federer, George Russell, and other global icons. We launched limited-edition Litquidity loafer showcasing a signature 'PLS FIX' engraving on the soles to blend elegance with a dash of humor. Fetch yourself a pair of the most distinguished footwear in the game and you will also receive an invite to an exclusive event in New York and London in the coming months.

  • Amid a much awaited rate cut cycle, Apollo partner and Chief Economist Torsten Sløk shared his firm's perspective on the path for interest rates going forward.

Hiring Junior Investment Bankers

Cascadia Capital - Investment Banking Analysts & Associates

  • Independent middle market advisory is hiring experienced IB associates and analysts in Austin, Minneapolis and Seattle

  • The firm is expanding after a significant investment from ex-Barclays CEO Bob Diamond and several senior banker hires.

  • Seeking associates and analysts across technology, industrials, consumer, and business services coverage, and analysts in capital markets and generalist roles

  • Immediate start, competitive comp packages

Meme Cleanser

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