☕️ Bonus slump

Tough times for investment bankers

Good morning.

If you are an investment banker you could be forgiven for staring at the finish line and just wanting the year to be done with. The widely documented slump in M&A and capital markets transactions in 2023 - both globally and locally - means no-one is expecting much in the form of bonuses in January and if you are working on a deal it might be wise to kick into into next year when the pie will likely be bigger to split anyway.

*Stock data as of the market close. Commodities and crypto data in USD.

LOI Subscriber #TBD

MARKET MOVERS

Market News: Not a good day for lithium stocks after broker JPMorgan cut its forecasts for the entire sector on concerns about oversupply. IGO led the way down, falling to its lowest level in more than a year.

Together with Stake | Invest on Wall St and the ASX

THE QUICK SYNC

  • Shares in small cap UK lender Metro Bank tumbled 30% as it looks to sell off mortgages and raise more cash to shore up its balance sheet (Guardian | Financial Times)

  • Belgian intelligence authorities are monitoring Chinese tech giant Alibaba for possible espionage in the country (Reuters)

  • The investors getting set for an epic resurgence in small caps (Capital Brief)

  • Ken Griffin’s hedge fund Citadel is up 13% this year, bucking broader market weakness (CNBC)

  • The long dry spell at 3M - one of America’s most innovative companies (Wall Street Journal)

  • Don't bank on bank stocks for sleep easy returns (Capital Brief)

TRADING FLOOR

M&A:

  • Binding offers for VetPartners are due this week. (AFR)

  • UBS released a detailed report on Whitehaven Coal's potential acquisition of two BHP coal mines just before their analysts were barred from discussing it. (AFR)

  • PEXA, a dominant player in property transactions, is acquiring the UK tech company Smoove for $59m. (BNA)

  • Cocoon Data has hired MA Moelis to sell its secure-file-sharing business (AFR)

  • UniSuper, in partnership with the Pension Protection Fund and APG Asset Management, has joined forces to acquire Forico. (AFR)

  • WiseTech Global has resumed its acquisition strategy by acquiring MatchBox Exchange. (Startup Daily)

Capital Markets:

  • Wellnex Life is in search of $12m to finance an acquisition of PainAway and list on the London Stock Exchange. (AFR)

  • Winsome Resources is conducting its second multimillion-dollar capital raising of the year, with Canaccord Genuity dividing the fundraising into two parts. (AFR)

  • Goldman Sachs and Macquarie Capital have secured roles in AirTrunk's potential IPO. (AFR)

  • Pharmachal Health Group is set to go public in Canada after a reverse takeover of Kalon Acquisition Corp. (BNA)

  • Openmarkets is continuing its journey toward a Nasdaq listing, aiming to achieve it by early next year. (AFR)

VC:

  • Renewable Metals secured $8m in seed funding to expand and bring its innovative technology to the commercial market. (BNA | Startup Daily)

  • AutoGrab has secured $7m in funding from Australian venture capital investors EVP and Ten13, with plans to further invest in its international expansion efforts. (AFR)

  • Antler reports commitments nearing $60m as it approaches the final close of its second Australian fund. (Startup Daily)

Others:

  • Herbert Smith Freehills predicts increased Asian investment in Australian public companies. (AFR)

  • Bankers expect another year of meagre bonuses due to reduced fees in investment banking caused by a surplus of global mergers and acquisitions and capital market activity. (AFR)

  • Accolade Wines' current lenders were presented with a comprehensive turnaround plan under UK restructuring regulations. (AFR)

  • Realside Financial Group has recruited Boab Capital Group's Miki Cvijetic to join its structured private credit division. (AFR)

  • BHP prepares for an influx of Indonesian nickel supply as nickel prices hit a two-year low. (AFR)

  • Dimerix shares doubled following the biotechnology company's announcement of a major licensing agreement for its DMX-200 drug candidate. (The Australian)

  • The proposed LNG import terminal at Adelaide's Outer Harbor is advancing toward a final investment decision by year-end, as it progresses in securing customers and funding. (The Australian)

INSIGHT OF THE WEEK BY STAKE

Swings and roundabouts
The Cboe Volatility Index (VIX) is heading up again as the reality of having higher interest rates for longer is setting in for investors. Also known as the stock market’s ‘fear gauge’, this measure has hit the highest point since the downturn in March and can indicate tougher times ahead for equities. When the market is going sideways, volatility trading products can be popular. VIX options volumes are up 40% compared to 2022 so far and could be on track for a record year.

This is not financial advice.

THE WATERCOOLER