Banking on Elon?

Several large US and international banks would lose $500m or more if they proceed with obligations to fund Elon Musk’s $44bn takeover of Twitter, according to a report over the weekend.

Morgan Stanley, Barclays, and Bank of America amongst others committed in April to raise $13bn in debt to finance the purchase – before a deterioration in credit markets.

Another thing before we get into the newsletter – if you haven't got Zeed yet, now is the time. It's our new investment platform, powered by video.    

This week, on Zeed we're looking into what gas fees are, how REITs can help you invest in real estate, and why you should be paying attention to expense ratios.

From our community, we're covering the huge surge in oil prices, why The Bank of England was forced to issue a £65 billion bond-buying program, and ...

This week's deal is in the energy sector. We have the lowdown on Schroder's aquisition of Greencoat Capital.

💨 Gas Fees

If you've ever made a trasaction on the Ethereum network, you've paid a gas fee. Watch this to find out what it is...

🔍 REITs

Want to invest in real estate but don't want to commit to the big upfront payment? You might be interested in REITs...

💵 Expense Ratios

Expense ratios are more important than you probaby think. This example shows how much you could miss out on by not paying attention...

OPEC Oil Cuts

Oil prices have jumped up by over $4 since Thursday in response to the Organization of the Petroleum Exporting Countries' (OPEC) agreement to slash oil production starting in November.

On Wednesday, the OPEC+ cartel - led by Saudi Arabia and Russia - decided to reduce their oil production target by 2 million barrels a day which equates to roughly 2% of the global crude oil supply.

US President Joe Biden was disappointed at OPEC+'s "short-sighted" decision. The Biden Administration has suggested that it might back a piece of legislation dubbed the ‘NOPEC’ Bill that will give the US the ability to sue OPEC members.

Bank of England's £65 billion bond-buying program

On 28th September, the Bank of England announced a £65 billion bond-buying program that was intended to help to prevent an impending pension crisis in the UK. The widespread lack of faith in Chancellor Kwasi Kwarteng's recently announced 'mini-budget' was reflected by unexpectedly large moves in the UK government bond (gilt) market.

The extreme volatility caused by the  announcement meant that many pension funds did not have enough cash on hand to meet collateral calls. Many pension schemes were forced to sell gilts to raise the required cash to cover their market positions. Others were kicked out of their positions because they failed to fulfil the collateral calls on time, meaning they had to sell gilts in order to protect themselves from more sudden market movements.

For more bite-size market updates, visit our community!

Schroders aquires Greencoat Capital

Schroders (LON: SDR)

Schroders plc is a British multinational asset management company, founded in 1804. The company employs over 5,000 people worldwide in 32 locations around Europe, America, Asia, Africa and the Middle East.

Greencoat Capital

Founded in 2009, Greencoat Capital LLP is a specialist manager dedicated to the renewable energy infrastructure sector. The company employs 100 people and operates in the UK.

Details

• Greencoat Capital and Schroders plc (“Schroders”) have reached agreement for Schroders to acquire a 75% shareholding in Greencoat, for an initial consideration of £358 million.
• Greencoat is one of Europe’s largest renewable infrastructure managers, with £6.7 billion of AUM at 30 November 2021
• Greencoat pioneered large-scale renewable energy infrastructure investing in listed and private formats, delivering compound AUM growth of over 48% per annum over the last four years to 31 March 2021
• Over the past 12 months Greencoat achieved net new commitments for private funds and equity raises for listed funds of £1.6 billion (1 December 2020 to 30 November 2021).

Stats

• Total transaction size: $358 million cash
• Schroders to aquire 75% shareholding

This week we caught up with Matthew Blain for another Professional Industry Insight.

We've missed out some shoutouts for episodes, so we have a few to get through (hence the date).

We'll catch you again next week, until then, make sure you're signed up to our community, and follow us on LinkedIn, Instagram, and Twitter! If you have any feedback or want to join our team, send us a message!

- Finance Focused Team