July 30, 2021
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Top Story
Some New York-based financial firms considered relocating their offices to the suburbs during the coronavirus pandemic lockdowns, but the city's reopening has led them to ramp up return-to-office plans at their original hubs.
Full Story: Bloomberg (7/27) 
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Industry Update
Robinhood Markets took the unusual step of reserving 35% of its initial public offering shares for retail investors, but only around 20% to 25% have reportedly been allocated, while several posts on the Reddit group that triggered the retail investor frenzy earlier this year actively advised against buying. Shares closed their first day of trading down 8.4%.
Full Story: Bloomberg (7/29),  CNBC (7/29),  Reuters (7/29) 
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Credit Suisse says it will pursue all avenues, including legal action, to recover $5.5 billion in losses suffered as a result of the collapse of Archegos Capital Management. Archegos probably deceived Credit Suisse and "obfuscated the true extent of its positions," but staffers also disregarded risk, according to a report from law firm Paul Weiss commissioned by the bank.
Full Story: Financial Times (subscription required) (7/29),  The Wall Street Journal (7/29),  Reuters (7/29),  Bloomberg (7/29) 
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A new study by S&P Dow Jones Indices suggests passive investing has saved $357 billion for S&P traders over 25 years. "As indexing has grown, investors have benefited substantially by saving on fees and avoiding underperformance," said Anu Ganti, senior director of index investment strategy at S&P Dow Jones Indices.
Full Story: Bloomberg (7/29) 
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Investors poured a record $3.2 billion into Treasury Inflation-Protected Securities in the week through Wednesday, while bond funds drew $12.7 billion, the biggest inflow in three weeks, according to Bank of America.
Full Story: Reuters (7/30) 
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The US is widely expected to avoid possible defaults by raising the debt ceiling or resuming its suspension, but analysts say this could lead to a shortage of safe short-term securities with consequent pressure on money market rates and funds.
Full Story: Reuters (7/29),  Financial Times (subscription required) (7/29) 
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A bipartisan Senate proposal to mandate reporting of cryptoasset transactions above $10,000 to the IRS, which would result in taxes on some trades, has caused consternation among cryptocurrency exchanges, their investors and advisers. Critics say the proposal has been drafted too hastily, while advocates say it would simply level the playing field between traditional assets and digital assets.
Full Story: MarketWatch (tiered subscription model) (7/29),  Bloomberg (7/29) 
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Pay for first- and second-year bankers in Morgan Stanley's global capital markets and investment banking divisions is being raised, a source said, as Wall Street banks compete to offer attractive employee compensation. The base pay for first-year bankers has been increased to $100,000, while the figure for second-year bankers is $105,000, the source said.
Full Story: Reuters (7/28),  Financial Times (subscription required) (7/28) 
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New York Focus
New York City will release new guidance on mask wearing for businesses on Monday, Mayor Bill de Blasio said. Some of the city's restaurants have begun requiring proof of COVID-19 vaccination for customers and staff.
Full Story: WABC-TV (New York City) (7/29) 
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Two New York-area companies are experimenting with sales models featuring refillable wine bottles. The tinted, corked bottles from New York-based "wine on tap" distributor Gotham Project are designed for at least 10 reuse cycles -- with the consumer receiving credit that can be applied to their account when the bottle is returned for a refill -- while New York startup Good Goods is experimenting with two bottle shapes that it expects can be reused up to 30 times.
Full Story: GreenBiz (7/28) 
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The Accounting of Cryptoassets: Understanding the Financial Reporting Implications of a New Asset Class
Join CFA Society New York for an evening of discussion on the mechanics of cryptocurrency management and valuation. Learn what financial professionals should consider when deciding whether to invest in companies that hold cryptoassets and become acquainted with the ways these assets can appear in reports and disclosures.
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On The Economy
Initial unemployment claims fell by 24,000 last week to 400,000, according to the Labor Department. While still above pre-pandemic levels, the figure has been generally falling throughout the year, and the downtrend is expected to continue.
Full Story: The Associated Press (7/29) 
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Financial Products
Sparkline Capital launched an exchange-traded fund that invests based upon companies' intangible assets, which it defines as brand equity, network effects, intellectual property and human capital. Top holdings include Microsoft, Amazon, Apple, Facebook and Alphabet.
Full Story: ETF Trends (7/27) 
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CFA Society New York News
Join CFA Society New York for an evening of discussion on the mechanics of cryptocurrency management and valuation. Learn what financial professionals should consider when deciding whether to invest in companies that hold cryptoassets and become acquainted with the ways these assets can appear in reports and disclosures.
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This boot camp is an intensive, instructor-led training program where trainees learn financial and valuation modeling in Excel using an intuitive, step-by-step approach. Participants will use real case studies to build financial models from scratch the way it is done at financial institutions. The program is a synthesis of Excel modeling, navigating through various financial reports and the application of Accounting, Corporate Finance and Valuation courses. Members get a 20% discount.
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It is a time in which we will redefine what it means to be human, for this is not just the start of a revolution, it is the start of an evolution.
David A. Sinclair,
biologist, professor of genetics
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