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The Outlook Edition
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The global economy has been impacted significantly by the recent collapse of SVB and Signature Bank in the US and the contagion with Credit Suisse, forcing an unprecedented merger where AT1 bond holders ranked lower than equity and HSBC stepped in to buy SVB’s European franchise for GBP1. This was the fastest digital run on a bank ever, resulting in lessons to be learnt by the entire marketplace as well as regulators and boards. This would have a direct impact on new requirements in risk management, risk stress testing, treasury reporting and even the allure or worth of AT1 bonds from an investment profile perspective.
SVB’s collapse was mainly due to overexposure to safe assets such as US bonds with long-term maturity, whose values declined after continued interest rate hikes by the Federal Reserve. These were not hedged for short-term liquidity needs, eventually leading to a bank run. New regulatory changes are on the way; one such is the “bank term funding programme” (BTFP), which refers to an emergency lending programme designed to provide liquidity to distressed banks. This is just the start of new reforms in this area, and we are certain the European Central Bank will roll out similar measures in Europe.
All this turmoil on top of the problematic higher interest rates and the decline in investment banking deal pipelines is creating a near-perfect storm and a circular issue for market confidence. We see banks and asset managers turning in earnest to enhancing cost-cutting measures. Many banks and asset managers have still not grasped the opportunity of using transformation and analytical support, and we continue to advocate this widely. We believe it is time for those of our clients in such a situation to more strategically partner with us to effect larger-scale transformation and cost savings. We have wide experience in assisting with such transformations and are ready to help you with execution in 2023 and prepare you to enjoy a more robust P&L in 2024.
Gyanendra N Pati, Senior Director, Global Head of Marketing
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Webinar on demand
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Unlocking value in private markets
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Navigating the leveraged finance tightrope
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Three industry leaders discuss best practices in private-market operations across strategies including private equity, private credit, venture capital, funds of funds, secondaries, real estate and infrastructure.
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We discuss how the leveraged finance market will perform in 2023 and the role robust credit governance will play in improving bank margins and navigating uncertainty.
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Exclusive and original insights from Acuity
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Investment Banking Outlook 2023 |
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Sell-side research – key trends in 2023
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Discover the top trends expected to shape the investment banking sector in 2023.
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Learn about the seven key themes expected to play out in 2023 and beyond in the sell-side research space.
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The future is in green and ESG deals
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Recent trends in the cryptocurrency market
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Explore how amid slower interest rate hikes and inflation subsidies in the US, ESG bonds are set to recover in 2023.
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Learn more on the recent events shaping the crypto market and its outlook.
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Future-proof sales enablement strategies for ESG firms
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A brief review of algorithmic trading
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Learn why due to rapid growth in business at ESG firms, project management and client retention may soon become unsustainable.
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Learn how to leverage speed and computational resources to make trading more systematic by eliminating the effect of human emotions relating to trading activity and ensuring efficient trade execution.
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Trade finance trends in 2023 – Farewell to a bumpy year and hoping for silver linings in an uncertain phase
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A brief look at the use of alternative data in private equity
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Learn how the uncertain short-term outlook on international trade, growth in trade will likely accelerate over the coming years.
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Learn how the use of alternative data in private equity is expanding owing to technology advancements and the growing availability of data.
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New at Acuity
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Control function services
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Paralegal services
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Our product control team delivers tailored service offerings. We optimise key performance indicators (KPIs), initiate process improvements, increase cost-effectiveness and improve operational flexibility for corporate and investment banks using existing infrastructure.
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Holistic support to financial institutions, corporates and law firms to help them meet contractual, legal and other regulatory requirements. Our team of experts function as an extension of your team, helping you navigate short- and long-term requirements.
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We are the market leaders in marketing and reporting solutions for global asset managers, counting some of the largest and marquee names as our clients. On the back of our robust growth, we have expanded our client base to include wealth managers, commercial banks, ETF houses and private equity firms.
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Trending solutions and digital applications |
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We continue to enhance our Business Excellence and Automation Tools (BEAT) applications and managed solutions suite to help analysts and operational teams significantly improve turnaround time, accuracy and quality.
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TombstoneHub: Automated credential builder
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CovenantPulse: Bespoke covenant monitoring and validation services |
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FolioSure: Portfolio monitoring for private equity and venture capital |
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Flexible and customisable managed solutions to efficiently manage the entire database upload workflow, including managing raw data and updating clean data in a timely and accurate manner
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CovenantPulse is an automated solution that provides in-depth understanding of covenant performance, delivers early warning signals of deteriorating covenant quality and generates advanced covenant analytics
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A fully customisable advanced managed solution for PE/VC portfolio monitoring. Achieve 30-40% cost savings and 50% shorter turnaround time for portfolio monitoring and LP reporting
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In the news |
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American Banker: BankThink – Client relationship-building still needs a human touch |
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Financial Advisor Magazine: Advisors need to prepare for a “short” recession this year, reports say |
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Acuity Knowledge Partners launches its third delivery centre in India |
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Acuity’s sector-specific newsletters |
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Compliance |
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Consulting
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Investment Research |
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Lending Services
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