general meeting 2
DESCRIPTION
General Meeting 2. 9 .16.2014. Agenda. Announcements Portfolio Update Market Update Lecture: Careers in Finance Pitch: WFM. Officer/SCG positions. Need to meet new officers What do I do now?. Pitch sign ups/Lecture. Pitch sign ups for the 30 th , 7 th , and 14 th Lecture Topics - PowerPoint PPT PresentationTRANSCRIPT
USIT General Meeting 29.16.2014
• Announcements
• Portfolio Update
• Market Update
• Lecture: Careers in Finance
• Pitch: WFM
Agenda
USIT General Meeting 29.16.2014
• Need to meet new officers
• What do I do now?
Officer/SCG positions
USIT General Meeting 29.16.2014
• Pitch sign ups for the 30th, 7th, and 14th
• Lecture Topics • LBOs• Financial Crisis• Employment• Is a college degree worth the cost
Pitch sign ups/Lecture
$5 entry fee
Fall Portfolio Challenge
•Build and manage your own portfolio•Compete with other McCombs students•Top three winners receive prizes in May
Register at usiteam.org/events
USIT General Meeting 29.16.2014
Announcements
Technical WorkshopsEvery Thursday 7-8
CBA4.328
This Week:Multiples Analysis
USIT General Meeting 29.16.2014
• FNMA (6.96%) – volatile
• ACC (6.44%) – Insider selling; giving pass previous gains
• BBRY (6.2%) – Announcement of Passport; Earnings coming up on Sep. 26; Acquired Movirtu
• GY(4.5%) – Analyst downgrade
Portfolio Update
Company Overview - ACC
• Largest student housing company• 1st publicly traded student housing REIT
• Real Estate Investment Trust• Distribute 90% of income as dividends• Does not pay corporate income tax
• $4.2 billion worth of developments• Partners with universities to build both on and
off campus properties• Headquartered in Austin
USIT General Meeting 29.16.2014
Alibaba IPO
What is Alibaba? Is it larger than Ebay and Amazon?
2013 transactions totaled $248 bn More than Ebay + Amazon
USIT General Meeting 29.16.2014
Alibaba IPO
Why am I talking about Alibaba? IPO
Midpoint price range of $155 bn
USIT General Meeting 29.16.2014
1. By buying stock in Samsung you get stock in? A. The Bundesbank B. A off shore account in Jamaica C. Samsung D. A South Korean Pension fund
2. By buying stock in Alibaba you get stock in? A. The Dallas Cowboys B. Chinese equivalent of social security C. Alibaba D. An agency in the Cayman Islands
3. The largest IPO in U.S. history was? A. AT&T B. Visa C. General Motors D. Facebook
Alibaba IPO
USIT General Meeting 29.16.2014
Scottish Independence
• What’s going on?
• Who’s involved
• Why are they doing this?
• Why does it matter?
YES NO
USIT General Meeting 29.16.2014
• What is it?
• Where is it being employed?
• Principal actors?
• What’s the big news right now?
Quantitative Easing
Nov. 2008 Fed announces QE1 and starts buying up to $1.7 trillion in securities
March 2010 QE1 ends
Nov. 2010 Fed enters QE2, buys $600 billion in securities over seven months
June 2011 QE2 ends
Jan. 2014Fed begins taper
Mortgage backed Securities
Nov. 2012 Fed begins QE3 $85 billion pm
TWIST
Federal Reserve Assets: Key Dates
2007 2008 2009 2010 2011 2012 2013 2014
May/June 2013Fed hints at tapering
Source: U.S. Federal Reserve
USIT General Meeting 29.16.2014
QE Tapering
Quantitative Easing 2014 Tapering
Tapering began in January of 2014 and will continue through October 2014.
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14
Fed QE Windown
Fed Purchases ($billions)
USIT General Meeting 29.16.2014
Japanese Quantitative Easing
26Source: Bank of Japan; Trading Economics
Japan Central Bank Balance Sheet (Billion JPY)
1999 Japan hits 0% interest rate 2010 Japan starts QE August 2011 BOJ increases balance sheet by 10T October 2011 BOJ increases balance sheet by 5T April 2013: Abenomics begin 130T over two years
o Represents ~23% of GDP
USIT General Meeting 29.16.2014
2008 2009 2010 2011 2012 2013
Monetary Easing in Europe
27Source: European Central Bank
European Central Bank Balance Sheet (Euro)
In Sep. 2014 ECB announces proposal for 1tn Euros of bank targeted initiatives intended to bring balance sheet to 2012 levels: Proposed program would be 7.8% of the Euro Area GDP Largest prong is the purchase of over 500bn Euros worth of covered bonds and ABS
(in millions of Euros)
USIT General Meeting 29.16.2014
• Banking
• Private Equity
• Hedge Funds
• Corporate Finance
• PWM
Major Fields
USIT General Meeting 29.16.2014
• Retail Banking
• Commercial Banking
• Private Banking
• Investment Banking
Banking
USIT General Meeting 29.16.2014
• You don’t invest
• Long hours
• Long weeks
• Decent pay
• Modeling
• Pitch books
• Other junk
Basic Facts
USIT General Meeting 29.16.2014
• Product Groups• Specialized type of banking
• Coverage Groups • Specialized industry of focus
Fields within Banking
USIT General Meeting 29.16.2014
• NYC
• Houston
• San Francisco
• Charlotte
Investment Banking Geography
USIT General Meeting 29.16.2014
• Financial buyers
• Utilize methods such as LBOs
• Look for turn around of distressed company
• Liquidity event • IPO
Private Equity
USIT General Meeting 29.16.2014
• Asset Management
• Small teams
• Limited number of large investors
• Not accessible to public
• Typically not undergraduates
Hedge Funds
USIT General Meeting 29.16.2014
• M&A
• Capital Raising
• Work focuses on your company
Corporate Finance